# Forum More Stuff Owner Builders Forum  Engaging a Builder But doing some myself , how to invoice the builder?

## davidajelliott

Hi everyone , My beautiful wife and i have purchased a block of land ( 2 acres ) and intend to have our dream house built.
As an Electrician and competent handy man , I intend to do some elements of the build myself ( $60,000 ) but would like to know how others in this situation "Billed" the builder to generate the right paperwork to keep the Bank happy. Should I stop toying with the idea of registering a business and just do it , with the added bonus of being able to Invoice the Builder to keep the out of pockets to a minimum. Strangely the Bank will initially value the property at the value of the signed Builders contract , what have others in this situation done ; I am open to all suggestions 
Thanks in advance , Dave Elliott ( S.E Qld )
P.s - A builder hasn't been selected yet as it seems a house ( modern Queenslander ) that's NOT a waffle pod concrete pad scares a lot of builders off

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## Snipper

You need to go over everything with the builder before signing any contracts and determine who is doing what and have everything written down in an agreement.  The builder then knows what he is quoting and everybody knows where they stand.  Other than that you could set it up as an owner builder job and pay the carpenters (as you are the builder)  by the hour for whatever you want them to do but I understand you'll still need to discuss this with the chosen carpenter prior to starting to work out some figures and costs for the bank.

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## jimfish

G'day Dave.
I'm not in qld so things maybe different up there but down here you would be expected to have public liability insurance, personnel sickness and accident cover as well as work cover insurance for anyone who helps you onsite. I believe you will need to register for an abn as if you don't the builder has to withhold 50% of your invoice for tax. As snipper says you must have everything in writing regarding who is to do what and who is responsible for what. My feeling is you may have trouble finding a builder who is willing to take on a project under these conditions. Also be aware that any money paid to you from the builder will have to be included in your taxable income as you are being paid for work performed .
Good luck with it . Jim

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## Mayfield0

Is it possible to become an owner builder and just hire a builder or builders for the specific parts of the job? that way there is minimal complication as you progress through the build calling the specific people as required with clear tasks you need them to do

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## joynz

> Is it possible to become an owner builder and just hire a builder or builders for the specific parts of the job? that way there is minimal complication as you progress through the build calling the specific people as required with clear tasks you need them to do

  As  an owner builder wanting to cut costs I think you would be hiring *carpenters* Etc not a builder.   
Builders are legally qualified to organise and supervise trades (Builder's licence) they don't actually have to be carpenters (though many will be or have been carpenters).  They have to carry a high level of insurance for the build and these days even provide work cover for their subbies.  There is a cost to this.  
You could engage a builder to 'lock up' and take over from  there.   
I reckon it would be simple just to do the electrical, and get the builder to leave it out of the  quote so he/she is not liable.  Would really have to be a distinct part of the job. 
Otherwise, good builders will be worried about you working in with their trades, disputes, Workcover etc.

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## Marc

+1 :d

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## intertd6

I couldn't imagine a builder doing that sort of things that these days, it could be considered fraudulent if a builder was to submit false claims to a bank.
inter

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## ringtail

Just become an OB and sub the parts of the build you don't want to do. Easy as.

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## David.Elliott

> Just become an OB and sub the parts of the build you don't want to do. Easy as.

  
I think there are finance implications with this. With a contracted builder the financiers are (relatively) confident that the dwelling they lend against will be completed.  
As an OB the banks are harder to convince that the money won't be "siphoned" for other uses, the house they lend against will be worth the money they lent against it etc, etc...

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## johnc

As an OB you usually have to get a house to lock-up before you get a penny from the bank. 
Invoicing the builder will end in tears if you are determining the value, a better way is to itemize the work you will do in advance and leave it at that. If you want a full quote then aren't you asking the builder to collect money from the bank on your behalf and pass it to you, under your loan contract this may breach lending rules. You would need to talk to the bank and see what is allowed and how you need to go about it, a banker discovering a loan is being used in a way that is not intended could bring a build to a sudden halt so dealing with the bank first and this place second might be a better idea.

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## ringtail

> I think there are finance implications with this. With a contracted builder the financiers are (relatively) confident that the dwelling they lend against will be completed.  
> As an OB the banks are harder to convince that the money won't be "siphoned" for other uses, the house they lend against will be worth the money they lent against it etc, etc...

  I've seen in the past banks just paying out on receipt of invoice from either a supplier of materials or labour. OB takes invoice to the bank and the bank direct credits the supplier / contractor.

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## PlatypusGardens

> Just become an OB 
> Easy as.

  ObBob will have something to say about this

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## Snipper

I think owner builder needs 80% of the total cost which is gone over thoroughly between lender and borrower prior to lending to ob nowadays.  As mentioned above by David Elliot, the bank/lender ends up with an unfinished house that's not worth what the borrower owes if sold to recover the debt.  Become very strict on this and probably understandably so.   They're more than happy to give naive young first home buyers a mil though and I bet if asked nicely, the banks will give whatever amount an owner builder wants on personal loan interest rates.  Greedy buggers.

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## ringtail

> ObBob will have something to say about this

  No doubt

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