OWNER BUILDER VS BUILDER · VICTORIA
Owner Builder vs Hiring a Builder in Victoria: Responsibilities, Costs and Risks
Owner building can give you more direct control, but it also transfers substantial project-management and legal responsibility to you.
Short answer
An owner builder takes responsibility for managing the building project, permits, required inspections, compliance and trade coordination. Hiring a builder places construction delivery and contractual responsibilities with the builder for the agreed scope. The cheaper-looking option is not automatically the lower-risk or lower-cost option once time, coordination, insurance and rectification exposure are considered.
Owner builder means taking on the management role
In Victoria, an owner builder is not simply a homeowner who does a little DIY. The owner builder takes responsibility for managing or carrying out domestic building work on their own home.
For work above the applicable threshold, additional consent and contracting requirements apply.
The responsibilities extend beyond organising trades
- ✓Obtaining required permits and approvals
- ✓Engaging and coordinating appropriately registered or licensed practitioners
- ✓Arranging mandatory inspections
- ✓Managing contracts, invoices and certificates
- ✓Ensuring work complies with applicable requirements
- ✓Keeping records for completion and any future sale
Hiring a builder changes who coordinates the construction scope
With a builder, the construction scope, price, payment schedule, responsibilities, variations and timing are set through the building contract. The builder coordinates the agreed construction works and trade sequencing.
The owner still has important responsibilities, including making decisions, paying valid progress claims, providing access and appointing the private building surveyor where applicable.
Compare the real cost, not only the builder margin
Owner building may appear to save the builder’s margin, but the comparison should also account for your time, procurement, trade availability, site supervision, errors, delays, rework and the value of professional coordination.
For complex renovations and extensions, existing-house interfaces can make coordination particularly important.
Questions homeowners ask
Do I need permission to become an owner builder in Victoria?+
For domestic building work over the applicable threshold, Victorian rules require a Certificate of Consent from the Building and Plumbing Commission. Check the current threshold and eligibility before starting.
Can an owner builder hire trades?+
Yes, but the owner builder remains responsible for complying with the rules that apply to engaging registered or licensed practitioners, contracts and required certificates.
Is owner building always cheaper?+
No. Any saving needs to be considered against project-management time, trade coordination, purchasing, delays, mistakes and rectification risk.
Can I sign as owner builder for someone else who will really run the job?+
Consumer Affairs Victoria warns homeowners not to sign as an owner builder at the request of a builder or tradesperson seeking to avoid their own legal responsibilities.
Ready to discuss your project?
Tell EBC what you are planning and we will help you work through the practical next steps.
Related EBC pages
- Choose a Registered Builder in Victoria
- Building Contract Checklist
- Home Building Process in Victoria
- Renovate, Extend or Rebuild?