Major changes from 1 March 2015 – Contracts for owner builders
- The threshold is being raised for the more detailed contract requirements from $5,000 to $20,000. Owner builder work under $20,000 will still need a written ‘minor works’ contract.
- A cap on deposits for work over $20,000 will be increased from 5% to 10%. Builders will only be able to request a maximum of 10% for a deposit for all projects, regardless of the value.
- Contracts over $20,000 will need a progress payment schedule (only authorised payments are allowed) and a termination clause.
- The mandatory consumer building guide, to be provided to owner builders before entering a contract, is being streamlined to provide essential information on both parties’ rights and responsibilities.
New Owner-builder laws – January 15 , 2015
- Owner-builders will be required to name all other owners of the land on an application for an owner-builder permit. This will be recorded on the permit to prevent people using this system to carry out commercial unlicensed building work. Any owners named cannot apply for another owner-builder permit for a different property for 5 years.
- Owner-builders will be prohibited from getting a permit for a dual occupancy except in special circumstances.
- Owner-builders will not be able to get statutory insurance although contractors working for the owner-builder will still need to provide certificates for work over $20,000. If the property is sold within the warranty period, the contract for sale must clearly state that there is no statutory insurance on the property.
- The threshold for requiring an owner-builder permit has increased to work valued over $10,000. All owner-builders must provide evidence of having done basic work health and safety training, and for work over $20,000 they will need to do an owner-builder course.