Course Contents
A u s t r a l i a n O w n e r B u i l d e r s - T h e C l u b , 5 Pe n i n s u l a B l v d , S e a f o r d , V i c 3 1 9 8
Phone: 1800 822 220 – Fax: 03 9773 6351 – Email: info@ownerbuild.com.au – Website: www.ownerbuild.com.au
AOB Course - 3
Table of Contents Page
INTRODUCTION 4
You Must Be Aware Of 4
THE BUSINESS PLAN 4
Module 1 5
1.0 ESSENTIAL PRELIMINARIES 5
1.1 Becoming an owner-builder 5
1.2 Owner-builder work 5
1.3 Applying for an Owner-Builder Permit 6
1.4 Applying for Development Consent 6
1.5 Obtaining a Construction Certificate 7
1.6 Categories of Building Approval 7
1.7 Complying Development Approval 7
1.8 Local Development Approval 8
1.9 Contracts 8
1.10 Essentials of a Contract 8
1.11 Built-in Protection 9
1.12 Deposits and Progress Payments 10
1.13 Home Warranty Insurance 10
1.14 Construction and Public Liability Insurance 11
1.15 Workers Compensation Insurance/Site Safety 12
1.16 Occupational Health & Safety 13
1.17 Asbestos 13
1.18 GST and the ATO 13
Module 2 14
2.0 EFFECTIVE COST MANAGEMENT 14
2.1 The Design 14
2.2 The Quantity Survey 14
2.3 Labour and Materials: 15
Module 3 16
3.0 SITE WORKS 16
3.1 Soil Test: 16
BuildSafe Insurance Application 17
3.2 Site Clearance: 21
3.3 Land survey 21
3.4 Rough Set-out 21
3.5 Drainage Trenches 21
3.6 Building Set-out 21
3.7 Retaining Walls 21
3.8 Temporary Site Services 22
Module 4 22
4.0 CONSTRUCTION STARTS 22
4.1 Concrete Floor Slab: 22
4.2 Concrete Strip Footings 23
4.3 Building Materials 23
Page
Module 5 24
5.0 WALL AND ROOF FRAMING 24
5.1 Delivery Time 24
5.2 The Carpenters 24
5.3 The Electrician 25
5.4 The Plumber 25
5.5 Telecommunications 26
Module 6 26
6.0 LOCK-UP AND FIT-OUT 26
6.1 To Lock-up Stage 27
6.2 To Fit-out Stage 27
6.3 Plasterboard Contractor 27
6.4 The Electrician 28
6.5 The Plumber 28
6.6 The Carpenter 28
Module 7 29
7.0 FINISH TO WET AREAS 29
7.1 The Bathroom 29
7.2 The Laundry 30
7.3 The Kitchen 30
Module 8 30
8.0 PAINTING AND DECORATING 30
8.1 Doing It Yourself 30
8.2 Hiring a Professional 31
8.2 Insurance for Owner Builders 31
Australian Owner Builder Assessment Test 33
Note:
a) Australian Owner Builders Pty Ltd is assigned to assess all
test papers associated with this course, and reserves the right
the pass or fail student submissions.
b) The certificate issued to any student is not transferable to
any other person or entity. To attempt such a transfer of identity
is a serious offence.
Disclaimer
The publisher, Australian Owner Builders Pty Ltd, is not
responsible for the results of any actions taken on the basis of
any information neither in this publication nor for any error or
omission from this publication.
The publisher expressly disclaims all and any liability and
responsibility to any person whether a purchaser or reader of
this publication in respect of anything and of the consequences
of anything done or omitted to be done by any such person in
reliance whether wholly or partially, upon the whole or any part
of the contents of this publication.
Copyright 2002
This document is protected by copyright and shall not be
copied (including photocopying) in whole or in part without the
written permission of the author.
“Helping owner Builders since 1987”
Introduction
A u s t r a l i a n O w n e r B u i l d e r s - T h e C l u b , 5 Pe n i n s u l a B l v d , S e a f o r d , V i c 3 1 9 8
Phone: 1800 822 220 – Fax: 03 9773 6351 – Email: info@ownerbuild.com.au – Website: www.ownerbuild.com.au
BuildSafe is
an insurance
brokerage
specialising in
the building
industry.
We Offer:
■ Owner Builder
Construction Insurance
■ Owner Builder Contracts
■ Home Warranty for Owner
Builders
■ Home Warranty Insurance
for Registered Builders
■ Subcontractors Public
Liability Insurance
■ Professional Contracts
& Specifications
“Helping owner Builders since 1987”
OWNER-builders without sufficient knowledge of building practices
put themselves at risk. They may find their available funds used up
prematurely and the result can be an unfinished project that may not
have reached lock-up stage.
Such an extreme outcome can be avoided by:
1) A basic knowledge of the essential stages in residential construction, and
2) Adoption of an effective cost-management strategy.
Both are covered in this course.
Building practices are explained only to a level that will help the owner-builder to acquire a basic
understanding of each stage of the work and to manage, co-ordinate and support the trades engaged.
However, owner-builders may, if they wish, undertake any physical work related to the
construction other than plumbing, gas fitting, electrical, metal roofing, and most refrigeration
and air-conditioning.
Cost management (Module 2) is presented in the form of a system comprising forecast and
actual costs incorporating a method whereby a cost blow-out can be avoided. It is not
essential that you use it, but you do need to pin down costs from the outset with written
quotes for labour and material, and price lists of fittings and appliances.
Owner-building can be a rewarding experience, but it has its own “road rules” that have been
drawn up in an attempt to protect all the parties involved. Whether your aim is to build a new
house or add to an existing one, the rules are similar.
They include the need to put in place various insurances, to secure the required permits, to
ensure the safety of the workplace (your building site), to comply with taxation laws, and, as
far as possible, to run the project as if you were a professional builder through effective
management of time, money, and tradespeople.
This course will take you through the various stages of managing the construction of a house or
renovation, and will warn of the pitfalls. It will explain how to order materials and hire labour, and
will lead you step-by-step along the path towards a project finished on time and within budget.
You Must Be Aware Of
• Definition of an owner-builder. An owner-builder is a person who does “owner-builder
work” AND who is issued with a permit for that work.
• Contractor Home Warranty Insurance. Where the total cost of a contractor’s work
exceeds $12,000, each licensed contractor (builder or tradesperson) who contracts
directly with an owner-builder to undertake residential building work must provide
Home Warranty Insurance from an approved insurance provider before taking any
money on the contract and before starting any work.
• Owner-builder Warranty Insurance. As an owner-builder, you are guaranteeing the
work that you undertake and co-ordinate. This means that if you sell your home within
SIX years of completion*, you must take out an Owner-Builder Home Warranty
Insurance policy (immediately prior to the sale) to cover the new purchaser against
defective or incomplete work. If you fail to take out this policy, the Contract of Sale can
be voided by the purchaser prior to settlement AND you risk a substantial fine.
*NOTE: The owner-builder’s Home Warranty Insurance policy period commences upon
completion of the work, i.e. at the time of final inspection. If there was no final inspection,
the policy period will be deemed to have commenced six months after the issue of the
owner-builder permit.
• The need to CHECK if the trades you engage directly as contractors are licensed for the
work being quoted.
• Other insurances. These include Builder’s All-Risk, Public Liability, Workers Compensation.
• The need to CHECK (if you are borrowing money), that you comply with the policies of
your existing home insurer AND financial institution (when renovating).
• WorkCover legislation, including Occupational Health & Safety (OH&S) and how it
affects the owner-builder. Contact your nearest WorkCover office.
• Contract requirements. Written contracts are required, by law, to be given by
contractors for their residential building work (labour and materials valued over
$1000).This means that if the contractor charges, say, $100 for his/her labour, the
contractor will need an appropriate licence to do the work if the materials used for the
work, though provided by the homeowner, are valued over $900.Therefore, a number of
contracts will be needed.
4 - AOB Course
Module 1 The Business Plan
A u s t r a l i a n O w n e r B u i l d e r s - T h e C l u b , 5 Pe n i n s u l a B l v d , S e a f o r d , V i c 3 1 9 8
Phone: 1800 822 220 – Fax: 03 9773 6351 – Email: info@ownerbuild.com.au – Website: www.ownerbuild.com.au
There is no
classification
called
Renovator.
All major
projects
requiring a
permit, and
carried out by
a home owner,
deem the
home owner to
be an OWNER
BUILDER.
■ New homes
■ Extensions
■ Renovations
■ DIY
YOU ARE THE BUILDER
and take on the same
statutory responsibilities as a
registered builder.
“Helping owner Builders since 1987”
THE BUSINESS PLAN
IT is unwise to embark upon an Owner-Building project without a written plan of action.
NOT only will your written plan remind you of the checkpoints you need to achieve as you
progress, but will be useful when approaching a lender (Bank, Mortgage company etc) for a
home loan.
Lenders often are wary of the perceived lack of security posed by owner-builders. A neatly
typed plan of action, indicating that you understand the basics of managing such a project,
will serve to reassure the loan authority that the project represents a sound investment.
The Business Plan need not contain great detail. But it should indicate to anyone who reads
it that:
• You can find the time required to supervise, on and off site.
• You have a verified budget of anticipated costs.
• You have made preliminary inquiries of the availability of
tradespeople required at every major stage of the work.
• You have working drawings, a Building Specification, and either a Quantity Surveyor’s
estimate or one you have compiled yourself based upon your own cost research.
• You have at least a basic understanding of building practices.
Once this owner-builder course has been worked through, and its critical recommendations
understood, you will be better-placed to successfully complete your construction project.
Module 1
1.0 ESSENTIAL PRELIMINARIES
This Module covers the owner-builder’s statutory obligations, applications and building
approval certificates (e.g. Development Consent), WorkCover requirements, Occupational
Health and Safety guidelines, Contracts and Insurance.
1.1 Becoming an owner-builder
To be an owner-builder in New South Wales, you must obtain an Owner-Builder Permit from
the Department of Fair Trading. An owner-builder is any person (in possession of an Owner-
Builder Permit) who takes on the job of doing or managing their own residential building
project and performs the co-ordinating and contracting roles usually undertaken by a
licensed builder.
Residential building work includes:
(i) Construction of a dwelling (includes garage), and any prescribed structures when
constructed for use in conjunction with a dwelling.
(ii) Alteration or addition to a dwelling.
(iii) Construction of a swimming pool.
1.2 Owner-builder work
You need an owner-builder permit to do owner-builder work. Owner-builder work is
residential building work where:
• the market value of the labour and materials needed to complete the work is greater
than $5000, and
• the work requires prior development consent from your local council OR is a Complying
Development*.
* Some smaller projects may be classified as a ‘Complying Development’. If your plans
meet the criteria set by your local council, you may be able to get a Complying Development
Certificate. This means you will not need to make a Development Application or apply for a
Construction Certificate.
The application fee for an Owner-Builder Permit is $100 and is GST-exempt.
An Owner-Builder Permit is not a building licence. It is restricted to the one project specified
in the application to build, and does not allow the holder to undertake electrical, plumbing,
draining, gas fitting or air conditioning work. Such work must be undertaken only by a
licensed tradesperson.
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Module 1
A u s t r a l i a n O w n e r B u i l d e r s - T h e C l u b , 5 Pe n i n s u l a B l v d , S e a f o r d , V i c 3 1 9 8
Phone: 1800 822 220 – Fax: 03 9773 6351 – Email: info@ownerbuild.com.au – Website: www.ownerbuild.com.au
Successful
projects all
require,
■ Time – Time spent
planning & researching
-Enough time to
complete the project
■ Information – Planning &
Statutory requirements
- Products & services
“Helping owner Builders since 1987”
1.3 Applying for an Owner-Builder Permit
An application for an Owner-Builder Permit may be made at any NSW Department of Fair
Trading centre, or you may apply for the permit by mail to the Department of Fair Trading,
P.O.Box 4004, Penrith 2750.
You may not obtain more than ONE Owner-Builder Permit within a period of FIVE years
UNLESS you are adding to/improving the same property.
Only where the Director-General of Fair Trading is satisfied that special circumstances exist
may you be granted a further Owner-Builder Permit for a different property within the fiveyear
period.
You will need a certificate to show that you have completed an approved owner-builder
education course if your job is valued over $12,000, proof of ownership or long-term
leasehold interest in the land that is the subject of the application, the Building or
Development Application number issued by your local council, and a copy of the building
plans as submitted to the council.
Only an individual (not a company or partnership) may become an owner-builder.
That person must provide:
• Their name and address.
• Proof of having completed an approved course of education in
owner-building if the work is valued over $12,000.
• Address of the proposed work.
• Description of the work.
• Building plans, site plans.
• Proof of age (18 years or over).
• Proof of having a legal interest in the land either as the sole owner,
or part-owner with other individuals, or as a long-term leaseholder.
• Statement of intention to live in the residence in question,
or in one dwelling of a dual occupancy.
Neither a building licence nor an owner-builder permit is required for work on your own
property where the work does not need development approval or a complying development
certificate OR if the reasonable cost of materials and labour does not exceed $5000.
If a licensed builder wishes to be recognised as an owner-builder for work on his/her own
place of residence, he/she may apply for an Owner-Builder Permit.
In such a case, the licensed builder is not required to arrange home warranty insurance, as
would be the case if that builder were acting as a ‘spec’ builder or as a contractor to some
other party.
Owner-builders are not obliged to arrange home warranty insurance UNLESS and until the
property is sold within six (6) years of completion of the work.
An Owner-Builder Permit does not allow the holder to build multi-occupancy dwellings (flats,
villa homes, town houses, units). But it does allow the building of a dual-occupancy (i.e.
duplex, two dwellings in one building, or two separate dwellings on one lot.
Work by an Owner-Builder, whatever its nature, is restricted to the project that is the subject
of the building application number issued by your local council and shown on the permit.
1.4 Applying for Development Consent
To obtain development consent for your owner-builder project, you need to lodge a
Development Application (DA) with your council (if development consent is required in your
case).
Once you have lodged the application, there will usually be a delay while your application’s
“notification period” runs its course. This time-delay is to enable occupants of nearby
properties, if they wish, to lodge an objection to your proposal.
The council may advertise the proposal in newspapers, and may require erection of a sign
(advising that a DA has been lodged) on site for the duration of the notification period. The
council also may write directly to your neighbours to advise of the lodgment.
After the expiry of the notification period, the council will consider your application.
6 - AOB Course
Module 1
A u s t r a l i a n O w n e r B u i l d e r s - T h e C l u b , 5 Pe n i n s u l a B l v d , S e a f o r d , V i c 3 1 9 8
Phone: 1800 822 220 – Fax: 03 9773 6351 – Email: info@ownerbuild.com.au – Website: www.ownerbuild.com.au
Insurances for
Renovators &
Owner
Builders
During Construction
■ Construction Risk Policy
- Public Liability
- Contract works
■ Public Liability for sub
Contractors
Post Construction
■ Owner Builder Warranty
“Helping owner Builders since 1987”
1.5 Obtaining a Construction Certificate
This is the granting of permission to build.
You may apply for a Construction Certificate at the same time as you make a Development
Application to the council, and if this is the case the council itself will be the consent
authority for the project.
If you apply for the Construction Certificate separately, you can choose to apply either to the
council or to a private accredited certifier. Whoever you choose, that authority will issue the
certificate and act as the consent authority, carrying out the normal periodic inspections of
the work.
1.6 Categories of Building Approval
Three categories of development affect residential building work in NSW:
a) Exempt Development
b) Complying Development
c) Local Development
Exempt Development:
• No approval required, provided that standards in the council’s
Development Control Plan are met.
• Not all councils have the same standards, and you should consult your council’s Local
Environmental Plan or its Development Control Plan to determine whether your project
qualifies as exempt or not. Exempt Development usually includes minor structures such
as small patios, pergolas, garden sheds of a certain size, and some minor interior
alterations.
• Even if deemed an exempt development, the project still must comply with the Building
Code of Australia and other specified development standards, such as compatibility
with neighbourhood amenities.
Complying Development:
• If your project meets certain criteria in the council’s Development Control Plan, you
must apply for a Complying Development Certificate. You need not lodge a
Development Application if you have a Complying Development Certificate.
• If a CDC is granted, it will include development consent and a Construction Certificate.
• You may obtain a Complying Development Certificate either from your local council or
from a private accredited certifier of your choice.
Local Development:
• Includes all development that is not an Exempt Development or Complying
Development, usually the majority of buildings.
• It requires lodgment of a Development Application to the local council, with full plans
and specifications, and a statement of the environmental effects.
• Before building work can start, a Construction Certificate must be in force.
• Check (as with all categories of development) your local council’s regulations and
requirements, because they can vary.
1.7 Complying Development Approval
Apply either to your council OR to a private accredited certifier for a Complying Development
Certificate. Normally issued within 7 days of submitting the application.
Two days prior to the construction work starting, you must notify the council of the date you
plan to start, and, if the consent authority is not the council, inform the council of the identity
of your chosen Principal Certifying Authority (PCA).
You should notify any adjoining owner(s) that work is about to commence, and be sure to
have advised the council in writing that you are the owner-builder (i.e. give your permit
number).
As the work proceeds, either the council or your PCA (whichever is the consent authority)
will inspect the work in progress. Ask how many inspections will be required - some
councils require more than others.
As the owner-builder, it is your responsibility to call for these inspections, notifying the
council, or your PCA. Inspections are usually made within 48 hours of being requested.
AOB Course - 7
Module 1
A u s t r a l i a n O w n e r B u i l d e r s - T h e C l u b , 5 Pe n i n s u l a B l v d , S e a f o r d , V i c 3 1 9 8
Phone: 1800 822 220 – Fax: 03 9773 6351 – Email: info@ownerbuild.com.au – Website: www.ownerbuild.com.au
Renovations &
Extensions
Your current Home &
Contents policy may not
cover you during extensive
renovations if;
■ a nominated value
is exceeded
■ you vacate the building
■ you are removing external
walls and roof
■ you are removing internal
load bearing structures
Always check your policy
and if necessary contact your
insurer for a written
response.
“Helping owner Builders since 1987”
1.8 Local Development Approval
• Lodge a Development Application with the council only.
• Lodge a Construction Certificate application either with the council (separately or at the
same time as the Development Application) OR with a private accredited certifier.
Issue of the Construction Certificate can be combined with issue of the Development
Approval ONLY if you are using the council as the consent authority. The homeowner may
choose whether to apply together or separately.
A Construction Certificate (issued by the council or a private accredited certifier — your
choice) cannot be issued until a Development Application (if required) has been made and
approved by the council.
Whoever you nominate as the consent authority (the council or a PAC), they will carry out all
necessary inspections of the building work and will issue an Occupation Certificate upon
satisfactory completion.
BASIX (The Building Sustainability Index)
– for Development Applications
All applications for development approval in the Sydney metropolitan area need to know that,
from 1st July 2004, a BASIX Certificate must be included with any proposal to build a new
house or dual occupancy in any of the local government areas in the Sydney metropolitan
area.
Other parts of the State will come under BASIX from 1st July 2005.
As part of the commitment to conserve scarce water resources and reduce greenhouse
gasses on the climate, the government introduces BASIX to make sure new homes use less
water and energy.
More information about BASIX is available on website at www.basix.nsw.gov.au.
SUMMARY: Some local councils have different permit requirements than others. First, have
plans drawn. Second, take your plans to your own council for a preliminary consultation.
You will be informed what steps to take next, i.e. whether or not you need Development
Approval/whether or not your project is an Exempt proposal etc.
1.9 Contracts
Any residential building work performed by a contractor to the value of more than $1000
must have a written contract arranged by the contractor.
This is the law. If the work is valued at $1000 or less, you should still note all relevant details
in writing so that any dispute with your contractor is minimised.
Contractor must give a Consumer Building Guide to the HomeOwner
From 16th February 2004, the licence holder must give to the homeowner a copy of the
“Consumer Building Guide” published by the Office of Fair Trading. The guide briefly outlines
the rights and obligations of the contractor and homeowner, and offers information on
dispute resolution.
1.10 Essentials of a Contract
A contract for residential building work valued at more than $1000 must be in writing and
contain the following:
• The names of the parties. i.e. the homeowner and the licensed contractor as shown on
the licence (make sure the contractor’s name matches exactly the name on the licence
and is not the name of anyone other than the licence holder).
• A checklist of 12 items as provided in Schedule 3 of the Home Building Regulation 2004:
• A caution about signing the contract if the consumer cannot answer yes to all items in
the checklist;
• A note about the contractor’s obligation to provide a certificate of home warranty
insurance if the work is over $12.000;
• An acknowledgment by the consumer that they have read and understood the
‘Consumer Building Guide’.
• A clause that states that all plans and specifications for work to be done under the
contract (including any variations to those plans) are taken to form part of the contract;
• A clause that states that any agreement to vary the contract or any plans and
specifications must be in writing and signed by the consumer and contractor;
8 - AOB Course
Module 1
A u s t r a l i a n O w n e r B u i l d e r s - T h e C l u b , 5 Pe n i n s u l a B l v d , S e a f o r d , V i c 3 1 9 8
Phone: 1800 822 220 – Fax: 03 9773 6351 – Email: info@ownerbuild.com.au – Website: www.ownerbuild.com.au
Construction
Works
Insurance
usually
contains both
■ Contract Works insurance
& Public Liability
insurance in a single
policy
■ Always check the policy
includes both, as some
policies may not include
the Public Liability
component.
“Helping owner Builders since 1987”
• A clause that states that all work will comply with (a) the Building Code of Australia, to
the extent required under the Environmental Planning and Assessment Act 1979,
including any instrument made under that Act, and (b) all other relevant codes,
standards and specifications that the work is required to comply with under any law,
and (c) the conditions of any development consent or complying
development certificate;
• A clause that the contract may limit the liability of the contractor for any failure to
comply with the clause referred to immediately above if the failure relates solely to (a)
a design or specification prepared by or on behalf of the owner (not by or on behalf of
the contractor) or (b) a design or specification required by the owner, if the contractor
has advised the owner in writing that the design or specification contravenes the clause
referred to immediately above: and
• A conspicuous statement (in the case of a residential building contract) that a 5-day
cooling-off period applies to contracts valued over $12,000.
• The contractor’s current (in force) licence number.
• The date and signatures of the parties.
• A sufficient description of the work to which the contract relates (ensure that the
contract used by each trade contractor clearly nominates the work to be done by
that contractor).
Building contracts should contain a full description of the work to be done. Plans, engineer’s
computations and any other relevant professional documentation should be included so that
there is a proper understanding by both parties of what is expected.
• The contract PRICE, if known, must be prominently displayed on the front page. If the
price is not known, or there may be a variation, the contract must contain a warning to
that effect and an explanation of the variation provision (i.e. the Rise and Fall Clause).
Where a contractor wants to charge by an hourly rate without indicating the number of
hours, insist on at least an estimate.
• Any statutory warranties applicable to the work.
• Consumers entering into building contracts valued at over $12,000 are entitled to a
cooling-off period of 5 clear business days. The consumer may rescind the contract by
written notice without penalty within 5 days after receiving a copy of the contract, or, if
the consumer has not received a copy of the contract, within 5 days of becoming
aware of their entitlement to receive a copy of the contract.
Where a licensed individual or partnership or company has another business or trading
name, that business name may be included in the contract, together with the name shown
on the license, if the business name is registered with the Office of Fair Trading as a
business name and that all contractors/tradesmen must be licenced for that work.
Make sure you also check the following:
• If the value of any contractor’s work is more than $12,000, a Home Warranty
Insurance certificate (provided to you by the contractor) must be attached. If it is not
attached to the contract, there must be provision made that work will not start, and no
deposit can be paid, until the insurance certificate is produced.
• The contractor must give a copy of the contract to the owner-builder within 5 clear
working days of entering into the contract.
• The contract MUST NOT contain a compulsory arbitration clause. If it does, the Home
Building Act voids it.
Ensure that the contract used by each tradesperson clearly nominates the work to be
performed by that contractor.
NB An authorised officer can demand details of all tradesmen/contractors.
1.11 Built-in Protection
All residential building contracts contain further protection for the home owner in that the law
implies statutory warranties into the contracts (even if they are not written in), for 6 years
after completion of the work.
These statutory warranties are that:
(a) the work will be performed in a proper and workmanlike manner;
(b) all materials supplied by the licensee will be good and suitable for the purpose used
and will be new unless otherwise stated;
(c) the work will be done in accordance with home building and other relevant laws;
AOB Course - 9
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A u s t r a l i a n O w n e r B u i l d e r s - T h e C l u b , 5 Pe n i n s u l a B l v d , S e a f o r d , V i c 3 1 9 8
Phone: 1800 822 220 – Fax: 03 9773 6351 – Email: info@ownerbuild.com.au – Website: www.ownerbuild.com.au
Public Liability
Insurance
Covers third parties against
personal or property damage
for which the renovator or
owner builder is
legally liable.
■ As the builder in control
owner builders have a
duty of care.
■ Damage caused to third
parties coming on site.
■ Damage caused from the
site to adjoining
properties & individuals.
“Helping owner Builders since 1987”
(d) the work will be done with due diligence and within the stipulated time, or, if no time is
stipulated, in a reasonable time;
(e) if the work is construction of, or alterations and additions to, a dwelling, the work will
result in a dwelling reasonably fit for occupation; and
(f) any materials used will be fit for the specified purpose or result.
If faults/defects become apparent after the completion of the work, it is the respective
contractor’s or supplier’s responsibility to make good the fault or defect. Should any
contractor or supplier fail to make good, the owner-builder may seek a referral to the
Building Conciliation Service of the Consumer, Trader and Tenancy Tribunal
- telephone 1300 135 399.
Sometimes, unanticipated conditions will require a variation to the work. Such variations
should be put in writing in the contract BEFORE extra work is carried out or extra materials
purchased. If the proposed variations are not documented in advance, they can mount up
and become uncontrollable, possibly leading to a dispute about exactly what variations had
been agreed to.
READ ALL CONTRACTS CAREFULLY BEFORE SIGNING.
DO NOT SIGN AND OFFER A DEPOSIT until you, the owner-builder, have received a Home
Warranty insurance certificate, if applicable, and checked that all other relevant insurances
are in place for the period of the work project.
READ ALL RELEVANT BOOKLETS ON BEING AN OWNER-BUILDER ISSUED BY THE
DEPARTMENT OF FAIR TRADING.
Note: The owner-builder takes responsibility for the aforementioned Warranties when they
sell to a subsequent purchaser.
1.12 Deposits and Progress Payments
Note: If the contract value is over $12,000, the contractor must not take ANY deposit
UNLESS a home warranty insurance certificate has been given to the homeowner for that
contractor’s work.
The Home Building Act 1989 prescribes the maximum amounts of deposits permitted.
Where the contract price is any amount up to $20,000, the contractor may only take a
deposit of up to 10% of the contract price.
Where the contract price is more than $20,000, the contractor must not take a deposit of
more than 5% of the contract price. From then on, progress payments should merely reflect
the value of the work done.
IMPORTANT: Pay only for work completed.
Some contractors may attempt to arrange terms whereby payments are to be made on the
basis of weekly or other time periods. Such arrangements are not recommended. Ensure
that your contract allows for progress payments only upon completion of the amount of
work scheduled under the contract to be of equivalent value to the progress payment
requested.
Make sure your contract documents the construction period — the quoted time that the
work should take to complete. ALSO make allowance for unforeseen events, such as bad
weather, delays in delivery of materials, strikes, etc.
A provisional sum might be allowed in the contract price for work that is difficult to estimate
in value. An example is footings, where the contractor has to excavate prior to knowing
exactly what category of ground will be encountered. The contractor cannot be blamed if,
say, rock is encountered. The estimated price may have to be adjusted, using the provisional
sum as the ‘ballpark’ figure.
1.13 Home Warranty Insurance
a) The Home Building Act 1989 requires all contractors (including those engaged by the
owner-builder) to provide a Home Warranty insurance certificate for any work valued at
more than $12,000 BEFORE ANY WORK COMMENCES, and prior to accepting any
money on the contract.
b) The Home Building Act 1989 also requires an owner-builder to purchase a Home
Warranty policy IF and WHEN selling the property within SIX years of completion of the
owner-builder work.
The latter policy is virtually the owner-builder’s guarantee to any SUBSEQUENT PURCHASER
10 - AOB Course
Module 1
A u s t r a l i a n O w n e r B u i l d e r s - T h e C l u b , 5 Pe n i n s u l a B l v d , S e a f o r d , V i c 3 1 9 8
Phone: 1800 822 220 – Fax: 03 9773 6351 – Email: info@ownerbuild.com.au – Website: www.ownerbuild.com.au
Public Liability
Insurance
Personal or property damage
arising out of acts by sub
contractors WILL NOT
BE COVERED.
Sub Contractors should
provide their own policy to
protect you and others from
acts of negligence.
Insist on a copy of the
subcontractors as a
condition of securing the
contract. No copy,
No start.
Voluntary workers are NOT
covered by the policy.
■ Specialist cover is
available at a cost.
■ As there is no
remuneration, voluntary
workers are not covered
by WorkCover.
■ Ensure ALL voluntary
workers are informed of
their position.
“Helping owner Builders since 1987”
of the property that the building works were performed satisfactorily and that they have
passed an inspection by a qualified assessor (at the time of taking out the insurance policy).
The Home Building Act 1997 provides that, where the same parties (ie the contractor and
the consumer-homeowner) enter into two or more contracts to carry out work in stages (eg
one contract to undertake the construction or installation work, the labour, and one contract
to supply and deliver the materials), the contract price for the purposes of Home Warranty
Insurance requirements will be the sum of all the contracts related to the one project.
Some people refer to this practice as ‘splitting contracts’. However, all the contracts signed
by the homeowner with the same contractor for various parts of the one residential building
project are deemed to be the one contract. Where the sum total of the prices of those
contracts is more than $12,000, the contractor must arrange home warranty insurance for
that contractor’s work, which will be all the labour and materials provided by that contractor.
The Home Building Act does not apply to the sale of goods or the supply of materials alone.
A supplier of building materials is not subject to the licensing or insurance requirements of
the Act if that supplier does not also undertake, or is not formally connected to the person
who contracts to undertake, any of the associated building work.
However, it is arguable that a contractor may be guilty of misleading and deceptive conduct
or collusion in cases where the contractor:
* Specifically recommends or refers the client to another party for another facet of the
same project,
* Uses the same or similar documentation or name as that of another party connected
with the project, or
* Is in any way associated with the party who supplies the materials or with another
contractor engaged on the same project,
In a manner which leads the client or homeowner to believe that the parties are one and the
same or connected to and responsible for each other.
Owner-builders also need to know that, when they sell the property in these circumstances,
they must also include with the contract for sale a conspicuous note stating that (a) an
owner-builder permit was issued in respect of work done in relation to the land, and (b) the
work done under the permit was required to have home warranty insurance cover.
This note may be in the form of an attachment to the front of the contract for sale, or a term
within the contract document which is made conspicuous to the prospective purchaser.
The owner-builder should discuss this matter with their conveyancing adviser.
If the property on which owner-builder work has been performed is sold LATER than six
years after completion, no home warranty insurance policy is required to be provided by the
owner-builder.
Both policies (a and b) are necessary -
a) Must be provided by any contractor, to the owner, PRIOR to performing work valued at
more than $12,000, and
b) Must be provided by the owner, to any subsequent purchaser, if the property is sold
with SIX years of completion of the owner-builder work (either new residence or
altered/extended residence).
The importance of Policy b should not be underestimated. If it is not provided to a
prospective purchaser, he/she/they may withdraw from the Contract of Sale before
settlement and the vendor would risk a substantial fine for breach of owner-builder
regulations.
When applying for insurance (Policy b), the owner-builder’s insurer will usually arrange
inspection of the work by a qualified professional, at the owner-builder’s expense.
For the compulsory Owner-Builder Warranty Insurance (if selling your owner-built or ownerbuilder
renovated property within six years of completion of the work) contact BuildSafe on
1800 019 233. WARNING: Fines of up to $22,000 can be levied and the Contract of Sale
voided if you attempt to sell without this insurance policy in place.
1.14 Construction and Public Liability Insurance
(BUILDERS ALL-RISK)
Construction insurance provides cover against events such as fire, malicious damage,
storm, theft, wind and water damage. It would be wise to purchase a policy that also
provides cover for demolition, clearance and removal of debris, and professional fees
(architects, engineers) in the event of a major claim.
AOB Course - 11
Module 1
A u s t r a l i a n O w n e r B u i l d e r s - T h e C l u b , 5 Pe n i n s u l a B l v d , S e a f o r d , V i c 3 1 9 8
Phone: 1800 822 220 – Fax: 03 9773 6351 – Email: info@ownerbuild.com.au – Website: www.ownerbuild.com.au
Workers
Compensation
Insurance
■ Contractors may be
regarded as employees.
■ Owner Builders may face
heavy fines of up to
$22,000 if uninsured.
“Helping owner Builders since 1987”
Public Liability insurance covers third party injury and property damage experienced during
the building project. The risks of being without Construction and Public Liability insurance
are very high. With no insurance, as an owner-builder you could lose the entire project if
someone sues you for damage caused to them by the owner-builder work. In any case,
lending institutions would normally require such a policy to be in place before releasing loan
funds.
These insurances may be available as a package Builders All-Risk policy. Make sure any
contractors you use also have these types of insurance policies.
You therefore would be wise to take out a construction insurance policy and a public liability
insurance policy well in advance of any work starting.
A major trap for owner-builders is under-insuring the project. Many believe that if they quote
the total cost of the job on the low side, they will save money on the Construction Insurance
premium.
This is not so. A cheap premium based on your estimated construction costs could leave
you very short of the mark if your project has to be re-built in the event of a total loss due to
fire or other catastrophe.
If you had estimated, say, $110,000 building costs because you had calculated that you
would save a professional builder’s profit, the insurance company would be paying
professional builder’s price, say $160,000, in the event of a total reconstruction.
This would mean that you were $50,000 under-insured - and you would have to make up
the shortfall to finance the project’s re-building.
Select a construction insurance policy that covers you also for professional fees, (land
surveyor, engineer, architect/building designer) etc that will be needed in the event of a total
re-build caused, for example, by fire gutting the structure.
Always read the policy you are purchasing, and ask questions of the insurance agent if you
are in doubt about extent of cover etc.
For Construction & Public Liability Insurance prior to starting your owner-builder project, and
for complete peace of mind during construction, contact BuildSafe on 1800 815 566
1.15 Workers Compensation Insurance/Site Safety
Contractors engaged by the owner-builder may be regarded, in law, as employees for the
purposes of workers’ compensation.
It is a good idea to inquire about workers’ compensation insurance cover. If a claim is
lodged against the owner-builder, it is better to have cover than be without it because there
are heavy fines for failing to have the right insurance.
If a worker is disabled in an accident whilst working on your project, you could be called
upon to fund all medical expenses, loss of wages etc. This might continue on for years, and
the final cost to the owner-builder can be imagined.
There is a standard workers compensation policy available that will ensure full coverage.
This is the Minimum Premium General Workers Compensation Policy.
WorkCover NSW is the authority with responsibility for enforcing laws relating to
Occupational Health & Safety, Workers’ Compensation etc.
There are WorkCover NSW offices throughout the State. The organisation’s inspectors work
from these offices and will issue advice on safe work practices.
Owner-builders would be wise to contact WorkCover NSW early in the project. The
inspectors have a wide knowledge of the law, and will be able to advise on building site
safety.
The concerns you will have as an owner-builder are the same as those of a professional
builder - matters such as injury, or death, of a worker or member of the public who could
enter the work site.
Codes of Practice etc can be obtained from any WorkCover NSW office free or online at
www.workcover.nsw.gov.au. Contact WorkCover NSW on 1310 50 (free call from Sydney).
Examples of subjects covered include:
1. The Building Industry Guide
2. Electrical Practices
3. Manual handling
4. Safe Work on Roofs
5. Excavation work
12 - AOB Course
Module 1
A u s t r a l i a n O w n e r B u i l d e r s - T h e C l u b , 5 Pe n i n s u l a B l v d , S e a f o r d , V i c 3 1 9 8
Phone: 1800 822 220 – Fax: 03 9773 6351 – Email: info@ownerbuild.com.au – Website: www.ownerbuild.com.au
Contract
Works
Insurance
Covers the property against
loss from external forces or
actions during construction.
■ Fire
■ Storm & tempest
■ Water damage
■ Theft
■ Vandalism
“Helping owner Builders since 1987”
1.16 Occupational Health & Safety
OH & S Regulations 2001, regard the owner-builder as the “controller” of the work site. This
means that you must be sure that workers on site have undergone site-specific OH&S
induction training.
For example, the owner-builder must ensure that all visitors and tradespeople have been
advised of any site hazards, changes to site conditions (excavations, scaffolding), Codes of
Practice, and should be informed of the nature of the site and the activities expected that
might constitute a hazard to them during the building operations.
As an owner-builder, you are required to provide suitable amenities on site for the use of the
trades you engage. There should be fresh drinkable water, a toilet (hired), and a safe,
comfortable area where workers can take refreshment breaks.
1.17 Asbestos
Warning about Asbestos and Other Hazardous Products
When doing home building, renovations or work around the home, you may come into
contact with asbestos and other hazardous products such as lead or certain solvents.
Asbestos and other hazardous products can cause serious injury, harm and even death in
certain circumstances if safety precautions are not followed. For some hazardous product,
such as asbestos, the law sets out who can do work involving these products and how to
handle and dispose of the materials.
Products containing asbestos may include fibro or asbestos cement sheets used on the roof
or walls or wet areas of a home, or as insulation material in the roof and around pipes.
It is, therefore, recommended that before you undertake the building, renovation or other
work on your home, you contact WorkCover or the Department of Health or your local
council for advice about the hazardous products that may be involved in the proposed work.
The WorkCover Assistance Service may be contacted on telephone 13 10 50 or website
www.workcover.nsw.gov.au. For advice on the transport and disposal of asbestos products
in New South Wales, contact the Department of Environment and Conservation Pollution Line
on 13 15 55.
You may also obtain the brochure Fibro and Asbestos – A renovator and Homeowner’s
Guide from WorkCover or any Fair Trading Centre (telephone 13 32 20).
1.18 GST and the ATO
Contracts issued by the contractors you engage should include GST in the total price quoted.
It is the contractor’s obligation, not the owner-builder’s, to pay the GST to the Australian
Taxation Office.
Beware of contractors who tell you they are GST-registered, but are not. They could charge
GST on their labour, and pocket it for themselves.
Owner-builders are not required to submit Business Activity Statements regarding progress
of the building project to the Tax Office, and cannot claim a refund of GST paid on the
purchase of materials and services.
The owner-builder has no obligation to the ATO to report amounts paid to contractors. This is the
contractors’ obligation during the normal course of their own Pay As You Go taxation responsibility.
Where to find out more:
Department of Fair Trading Centres (general information), your local council, government
agencies, building centres, people who have already been owner-builders, private building
certifiers, architects, draftspersons, building industry websites etc.
Discuss your plans with neighbours. They are entitled to object if they consider that your
new building work will affect them.
Additional Reading. The following booklets are available from
Department of Fair Trading centres:
Home Building and Renovating
Builders and Tradespeople
Becoming an owner-builder
Fair Trading Centres
There are Fair Trading Centres at Albury, Armidale, Blacktown, Broken Hill, Coffs Harbour.
Dubbo, Gosford, Grafton, Hurstville, Lismore, Liverpool, Newcastle, Orange, Parramatta, Penrith,
Port Macquarie, Queanbeyan, Sydney, Tamworth, Tweed Heads, Wagga Wagga, Wollongong.
To contact any Fair Trading Centre, call 13 32 20.
AOB Course - 13
Module 2
A u s t r a l i a n O w n e r B u i l d e r s - T h e C l u b , 5 Pe n i n s u l a B l v d , S e a f o r d , V i c 3 1 9 8
Phone: 1800 822 220 – Fax: 03 9773 6351 – Email: info@ownerbuild.com.au – Website: www.ownerbuild.com.au
Contract
Works
Insurance
Check your policy provides
cover for,
■ Demolition
■ Clearing
■ Professional fees,
Should you suffer a loss and
have to claim.
BuildSafe products all carry
the extra cover at no
additional cost.
“Helping owner Builders since 1987”
2.0 EFFECTIVE COST MANAGEMENT
This Module covers building design, cost management, hiring labour and ordering materials.
The prime objectives the owner-builder needs to achieve are:
i) Completion within a reasonable time frame.
ii) Good value for money spent.
iii) The realisation of the financial objective of completing the project within the funds (and
any loan funds) available.
2.1 The Design
Finding a creative, co-operative, building designer is the first step. It is suggested you do
your own rough sketches of the type of house or renovation/addition you intend to build,
showing suggested roof shape, room sizes, decking etc. Take this, with an accurate site
plan, to your architect or draftsperson, explain your “wish list”, nominate your budget limit,
and ask for a preliminary drawing to be prepared.
Using this preliminary drawing, you can either approve the design, or discuss any changes
required. Once you and your designer agree, he or she can get ahead with full working
drawings — the building plans.
The person qualified to draw the plans can be of assistance in other ways. They can explain
construction procedures, help with selection of materials, and might pass on to you the
names of reliable local tradespeople.
The approved finished plans are vitally important. They will determine how much you will
pay for the entire project, and are the basis for an accurate estimate of costs.
Note: Working drawings should include the electrical plan showing number and location of
lights and power points. Preferably, the plans will be accompanied by a Building
Specification, which usually is several pages long, and indicates materials to be used and
procedures to be followed.
2.2 The Quantity Survey
YOU may attempt to estimate costs yourself. This will require careful study of the prices of
materials and the cost of labour, and will take a great deal of your time.
Alternatively, you might prefer to take your building plans, and the Building Specification, to a
Building Estimator/Quantity Surveyor in your area (check the Yellow Pages). For a fee, he or
she will calculate material and labour costs, plus other expenses, using computer software,
and probably will complete the mathematics in one twentieth the time it would take you to
work it all out on paper. The choice, however, is yours. Some owner-builders would relish
the task of calculating costs.
If you decide to use a professional, the quantity survey will give you a fairly accurate total
(the Indicative Costs) of the amount of money you will need, and this should impress any
lender being asked to grant a loan. Armed with a professionally-generated cost estimate, you
will have much more chance of convincing the loans manager that you are a responsible,
methodical borrower.
However, it is almost impossible, even for the professional estimator, to be 100 per cent
accurate when calculating building costs. Inevitably, cost-related incidents will force
changes, e.g. a rise in the price of some materials, small mistakes on site, and minor (or
major) over-runs of labour time schedules.
Using a Quantity Surveyor/Estimator brings other benefits to the owner-builder because the
really helpful professional ones will offer tips and re-assurances BEFORE construction starts.
Included at the rear of this course is a sample pro-forma estimating charting system —
Effective Cost Management for the Owner-Builder, devised by quantity surveyor John
Ruffle, FAIQS, FRICS. A complete version is available on our
website: www.ownerbuild.com.au or by calling 1800 822 220. It is recommended that you use
it in conjunction with the services of a Quantity Surveyor in your own locality.
The starting point is your Quantity Surveyor’s (or your own) estimate, or Indicative Cost. If
using the services of a quantity surveyor/estimator, he or she will calculate this Indicative
Cost (IC) from your Building Plans and Building Specification document and supply to you
the individual and total costs anticipated.
These estimated costs will appear in Column A of the system’s checklist. The checklist
allows you to compare your Quantity Surveyor’s estimates with the quotations/prices you
14 - AOB Course
Module 2
A u s t r a l i a n O w n e r B u i l d e r s - T h e C l u b , 5 Pe n i n s u l a B l v d , S e a f o r d , V i c 3 1 9 8
Phone: 1800 822 220 – Fax: 03 9773 6351 – Email: info@ownerbuild.com.au – Website: www.ownerbuild.com.au
Construction
Insurance
Realistic Cost Of
Replacement
Ensure the sum insured
meets the realistic cost of
replacement.
What an industry
professional would charge to
complete the works.
Claims are paid as a
percentage of the sum
insured against the realistic
cost of replacement.
“Helping owner Builders since 1987”
receive. It also has the facility to warn you that costs might be running out of control so that
you can put the budget brakes on before it is too late.
BuildSafe Independent Housing Group has available comprehensive Building
Specification documents in booklet format, illustrated with diagrams from the
Building Code of Australia. To order copies, call BuildSafe on 1800 019 233.
Cost Monitor Explained
(Effective Cost Management)
Column A:
The Quantity Surveyor’s, or your own, Indicative Cost (Column A on the system’s Cost
Monitor) lists all essential items in the construction process, code-numbered.
Costs for items named in Column A indicate to you and your lending authority how much the
project is expected to cost. This is the preliminary estimate.
With Column A completed by yourself or your Quantity Surveyor, your next step, as the
owner-builder, is to copy/transfer the estimated amounts from Column A to Column B.
Column B:
Copy the amounts in Column A to Column B in pencil. Pencil is used because as quotations
and prices come in to you, these estimated amounts can be rubbed out and replaced in ink
with the quotations you decide to accept.
Cost Monitor’s checklists give you a yardstick to compare the professional estimates (given
you are prepared to pay for the services of a Quantity Surveyor) in Column A with the written
quotes for labour and/or materials that you receive from tradespeople and suppliers, and
which you enter in Column B.
Since Column A tells you what should be charged by tradespeople and suppliers, it forms a
standard by which you can judge the integrity, or otherwise, of the quotations you receive.
* The above is an outline only. The estimating charts alone will help if you decide to work
out your own estimate based on the quotations (written) that you receive from
tradespeople and suppliers.
It is worth remembering that although owner-builders usually try their utmost to build as
economically as possible (and so they should), they often fail by refusing to “spend to
save”.
Using the services of a quantity surveyor/estimator will attract what at first seems a sizeable
fee. However, paying a professional to do the overall estimate almost always saves money in
the long run.
A professional estimate will impress your bank or other loan source. The banks will be more
likely to lend money if they realise that estimated costs have been done by a professional,
and presented in a business-like format.
A professional estimate is an investment in itself, and takes the stress away from the ownerbuilder
who must inevitably guess the cost of some items — a dangerous practice because
there are so many separate items that must be considered.
Professional builders use professional estimators; why should not you, as an owner-builder,
do the same?
Once your detailed working drawings are available, take a copy of the plans, and the building
specification, to an estimator.
The estimate, or bill of quantities, is your starting point. By calling for tenders from individual
contractors and suppliers of materials, you will eventually come close to the estimate
provided. As mentioned previously, even a professional estimate cannot be deadly accurate,
but acts as an indicator of what you should be paying.
If you decide not to employ a professional estimator, you should research prices of
everything that will need to be bought, including labour. This is done by rigorous homework,
many phone calls, and obtaining price lists from suppliers (i.e., bricks, timber, tiles,
windows, doors etc), then listing them on your estimating chart.
2.3 Labour and Materials:
Obtain written quotes (at least three) from each of the main trade contractors involved, and
from manufacturers/suppliers of windows, doors, bricks, and timber etc. You will need
several prints of your building plans for them to quote from.
Send a copy of your plans to each tradesperson (concreter, carpenter, bricklayer, plumber,
electrician) after phoning them to ask if they will be available and then await their quote.
AOB Course - 15
Module 3
A u s t r a l i a n O w n e r B u i l d e r s - T h e C l u b , 5 Pe n i n s u l a B l v d , S e a f o r d , V i c 3 1 9 8
Phone: 1800 822 220 – Fax: 03 9773 6351 – Email: info@ownerbuild.com.au – Website: www.ownerbuild.com.au
Example:
Owner Builder
Project
Materials & Services
$200,000
Owner Builder labour cost
Nil
Sum insured
$200,000
(Realistic cost of replacement)
Project quoted by builder
$300,000
Sum underinsured
33% $100,000
In the event of a claim for,
say $200,000
Payout of 66% of the claim
$132,000
Owner builder out of pocket
= $68,000
“Helping owner Builders since 1987”
Remember, just because a tradesperson has quoted, and you have accepted, does not
necessarily mean they will do the work when you want them to. You will need to stay in touch
to emphasise that you are relying on them to fit in with the co-ordination of other trades.
In the meantime, obtain prices from manufacturers for items such as windows, doors, and
roofing materials, and choose the bricks by name and colour from brickmakers’ catalogues.
All this, of course, is exactly what a professional builder has to do (either using his own
time, his staff’s time, or the services of a quantity surveyor).
Leave items like dishwashers, clothes driers, hot water services until later. These can easily
be added to the construction estimate once you have decided on brands and sizes. Also add
in the cost (by quotation) of any heating and cooling.
When seeking prices for timber, you will notice a wide variety of quotes. This is merely the
process of competition taking effect. From wherever you order timber, it usually is most
cost-effective to order everything from one supplier/timber merchant.
Some timber yards will take your plans and calculate for you exactly what you will need —
how many wall components (studs, top and bottom plates etc), and will do the same with all
other materials.
Using one supplier should achieve for you the most effective quotation, because those who
are tendering will know that they are competing with other tenderers for your business.
Order timber as early in the exercise as possible; to supply a “house lot” often will stretch a
single supplier’s stock levels, and you might have to wait.
Some Estimating
Rules of Thumb:
Bricks:
Laid as a single skin (brick veneer), count 50 bricks per square metre of wall area.
Cement:
Four bags of cement will be needed to lay 1000 bricks. Same amount of lime.
Sand:
One cubic metre of sand to lay 1000 bricks.
Mortar Colour:
Liquid colouring - 4 litres will colour enough mortar to lay 1000 bricks.
Brick Ties:
About 60 ties for 1000 bricks laid.
Concrete Slab:
Approximately $40 per square metre (average preparation).
Concrete:
Varies, but approximately $160 per cubic metre delivered ready-mixed.
NOTE: Deal only with tradespersons who are licensed by the Department of Fair Trading.
Module 3
3.0 SITE WORKS
This Module discusses works required on site prior to construction — land survey, building
set-out, excavations, drainage, easements, site clearance and planning.
If the building site is not carefully prepared for the construction works, many problems will
be encountered. There should be convenient access for delivery trucks, areas set aside for
piling of sand, weatherproof storage of cement etc, and removal of trees (subject to council
approval) that might interfere with the integrity of the proposed structure.
Site works for a residential dwelling are carried out more or less in the following sequence:
3.1 Soil Test:
The soil test is performed by a qualified engineer who will visit the site and drill for core
samples. Since the ground is to be the foundation of your building, it is important to know
its make-up — whether it is clay, rock, sandy loam, silt, or a combination.
The nature of the foundation encountered governs the design of the footings system
nominated (usually either concrete strip footings or concrete floor slab).
This soil test will allow your building envelope to be classified as to its bearing capacity, and
should, at the same time, highlight any drainage and/or construction problems.
16 - AOB Course
BuildSafe Insurance Brokers Pty. Ltd., 5 Peninsula Blvd Seaford Vic 3198 – Telephone : 03 9773 6777
Fax : 03 9773 6351 – Interstate : 1800 019 233 – Email : info@buildsafe.com.au – Website : www.buildsafe.com.au
AOB Course - 17
Your Tear Out - Fast Track
Application For Construction
& Public Liability Insurance
BuildSafe Building Insurances
to deliver you an insurance
package guaranteed to deliver
the best industry cover, at the
best possible price.
The package includes BuildSafe’s Express Service to
guarantee you the best service in the quickest time.
BuildSafe Insurance Brokers P/L has been providing
specialist insurance products, services and
information streams to the building industry
since 1987.
BuildSafe Building Insurances have developed, and
are constantly expanding, the most comprehensive
range of building insurance products available to the
building industry today.
Protect yourself with:
● Vacant Land Insurance while waiting
to start building
● Construction & Public Liability Insurance
when you build
● Warranty Insurance when you sell
● Unoccupied Building Insurance while
waiting to settle
Vacant Land Insurance
Prior to commencing works on the site your vacant
land is still a risk. Un-invited persons can enter the
vacant site and still injure themselves or items or
fixtures on the land can still cause damage and injury
to adjoining properties. Vacant Land Insurance will
protect you against public liability claims from
settlement until the commencement of works.
Construction &
Public Liability Insurance
Owner builders, by taking out the permit, are deemed
to be in control of site safety and the co-ordinating of
workers. Uninvited guests or
neighbours could sue you for
hundreds of thousands of dollars
if an injury or damage can be
traced to your negligence. It is
vital that you take out Public
Liability Insurance to protect
yourself and your assets against
potentially huge claims.
Public Liability covers third party
personal injury and property
damage that occurs during the
period of the policy for which the
insured shall become
legally liable.
Where workers are employed
rather than subcontracted the owner builder should
seek workers compensation cover. Public Liability
does not satisfy workers compensation requirements.
Note: You are required to ensure that all subcontractors
and specialist suppliers provide you with
their own public liability insurance for damages or
personal injuries they cause due to their negligence.
What Does Construction
Insurance Cover?
Construction Insurance (also known as Contract
Works, Material Damage or Construction Risk
insurance) covers the main risks encountered during
the building process. These include malicious
damage or vandalism, theft, fire damage, storm, wind
and water damage.
The BuildSafe Building Insurances policy includes,
at no extra charge, an amount to cover demolition,
removal of debris and professional fees that may
leave you underinsured in the event of a major claim.
Fill In - Fax Off - and we’ll fix it! - BuildSafe Insurance Brokers Pty. Ltd. – Fax : 03 9773 6351
BuildSafe Insurance Brokers Pty. Ltd., 5 Peninsula Blvd Seaford Vic 3198 – Telephone : 03 9773 6777
Fax : 03 9773 6351 – Interstate : 1800 019 233 – Email : info@buildsafe.com.au – Website : www.buildsafe.com.au
18 - AOB Course
What About Extensions Or Renovations
On A home Already Covered By Home
& Contents Insurance?
It is vital that you check the specific policy wording of
your Home & Contents Policy, as most insurers
suspend the home insurance and public liability cover
for renovation and extension work over a certain
value or complexity.
This could affect the cover to the existing house for
loss or damage as a direct result of the renovations
or extensions. Public liability cover could also be
affected. If you are renovating or extending you
should check your current policy wording carefully.
BuildSafe Building Insurances are able to cover both
the existing home and the extensions or renovations
under its Construction Risk policy.
How Do You Calculate The Right
Amount Of Insurance?
This is known as the under-insuring trap. Do not try
to save money by insuring your works for less than
the actual replacement cost of a licensed builder
carrying out the work. In the event of an indemnifiable
event under the policy, (an
event that is insured), and it
is found that the sums
insured are less than 90
percent of the amount
required to be insured, the
amount recoverable by you
under this policy will be
reduced by such proportions
as the sums insured bear to
90 percent of the amount
required to be insured.
E.g. Say a home is insured
for $60,000 rather than its
replacement cost of
$120,000 and there is a loss
of $40,000.
The insurer will only be required to pay $22,000 due
to these provisions. This would be calculated as 55
percent of the loss due to the proportion of the
$60,000 insured to $108,000 (90 percent of
replacement cost). In this case, the In the event of a
total loss, the owner builder would have to pay
$60,000 towards the cost of rectification.
Is the building insured once
completed and still vacant?
Your Construction & Public Liability cover will cease
at the completion of the works. If the building remains
unoccupied while waiting to move in or be sold or
settled, it will NOT be insured and is at risk. BuildSafe
Unoccupied Building Insurance will cover the building
until the property is occupied by yourself, rented out
or sold & settled. The cover is available in all
Southern States. For further information contact
BuildSafe Building Insurances.
Selling? Owner Builder Warranty
Homes can be sold, but State legislative requirements
may necessitate you providing the purchaser with
Warranty Insurance. The legislative requirements vary
from state to state and due diligence is advised
before entering a contract of sale. Further information
is available from the relevant State bodies or by
contacting BuildSafe Building Insurances. BuildSafe
Owner Builder Warranty department will provide
prompt service and competitive premiums when
warranty cover is required.
The BuildSafe Express notification
telephone number is 1800 019 233
Important Notice
Once your Construction & Public Liability Insurance
has been confirmed and paid for, the policy will lie
dormant until you notify BuildSafe Building Insurances
of your starting date.
Upon notification BuildSafe Building Insurances will
activate the policy from 4.00PM on the day
before your designated starting date.
BuildSafe Insurance Brokers Pty. Ltd., 5 Peninsula Blvd Seaford Vic 3198 – Telephone : 03 9773 6777
Fax : 03 9773 6351 – Interstate : 1800 019 233 – Email : info@buildsafe.com.au – Website : www.buildsafe.com.au
AOB Course - 19
Please refer to the product disclosure statement and Financial Services Guide to ensure this product meets your needs.
You can obtain these from our website or call our office and we will be happy to send them to you.
Name of Insured/...........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Building Owner/s: .........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
..............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Address for Notices:.................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
..................................................................................................................................................................................................................................................................................................................................................................................................................................... Post Code: ....................................................................................
Home Phone: .....................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Business Phone:.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Mobile: .......................................................................................................................................................................................................................................Fax: ....................................................................................................................................................................................................................................................................................
Email:............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Site of Construction:.................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Period Of Insurance: .................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
..................................................................................................................................................................................................................................................................................................................................................................................................................................... Post Code: ....................................................................................
Owner Builder Construction Risk
Contract Works/Broadform Liability Application Form
BuildSafe Insurance Brokers Pty Ltd
ABN 84 109 623 976 AFS Licence 279367
IMPORTANT INFORMATION
Pursuant to the provisions of the insurance Contracts Act
1. DUTY OF DISCLOSURE - YOUR DUTY OF DISCLOSURE
Prior to entering into a contract of general insurance you have a duty to
disclose certain information. You have the same duty to disclose prior to
renewing, extending, varying or reinstating a general insurance contract.
What you must tell us
When answering Our questions, and in providing other relevant information
You must be honest and You have a duty under law to tell Us anything known
to You, and which a reasonable person in the known circumstances would
include. We will use this information to answers whether to insure you and
anyone else to be insured under the Policy, and on what terms.
Who needs to tell us
It is important that you understand you are answering all our questions in this
way for yourself and anyone else whom you want to be covered by
the Policy.
If you do not tell us
If you do not answer the questions in this way, we may reduce or refuse to
pay a claim, or cancel the Policy. If you answer our questions fraudulently,
we may refuse to pay a claim and treat the Policy as never having worked.
Important
This duty of disclosure applies to all the people named on the Proposal Form.
Please read the Policy wording carefully to ensure;
● You are aware of all the contractual rights and obligations;
● The Policy provides the cover You require; and
● You are aware of the limits regarding Policy coverage and what We will pay
You under the Policy.
2. AVERAGE PROVISIONS
Where the policy contains an average clause, requires you to insure for the
full replacement value. If you fail to do so, and you are underinsured, the
Insurer will pay you less in the event of a claim, in proportion to the amount
of under insurance. In particular, the Insurer will pay the proportion of your
claim that the Sum Insured bears to 90% of the replacement value.
3. THIRD PARTY INTERESTS
You must inform us of the interests of all third parties (e.g. Financiers,
lessors' etc) to be covered by this insurance. The Insurer will protect their
interests only if you have provided details and they are noted
on the Schedule.
4. SUBROGATION
We retain the right to recover any money paid under this Policy from any
person whom You may be able to hold liable or responsible. If You have
entered into any agreement with such a person having the effect of excluding
or limiting Our rights in this regard You will have no cover under this Policy.
We will have full discretion in the conduct, defence or settlement of any claim
and to take any action in Your name. Any party entitled to cover under this
Policy must not hinder these rights and must give all information and cooperation
required by Us.
If We make any recovery as a result of such action You may only recover
from Us any amount by which the amount recovered by Us exceeded that
amount paid to You under the policy in relation to the loss.
Please complete the form below and return to BuildSafe Insurance Brokers Pty Ltd, PO Box 2294, Carrum Downs, Victoria, 3201.
A consultant will contact you regarding any additional information and provide you with a quotation.
BuildSafe Insurance Brokers Pty. Ltd., 5 Peninsula Blvd Seaford Vic 3198 – Telephone : 03 9773 6777
Fax : 03 9773 6351 – Interstate : 1800 019 233 – Email : info@buildsafe.com.au – Website : www.buildsafe.com.au
20 - AOB Course
Construction Method And Materials Used:
Construction Works: ...........................................................................................................................................................
No. Stories: ...................................................................................................................................................................................
Footings:...........................................................................................................................................................................................
External Walls: ...........................................................................................................................................................................
Frame Materials: .....................................................................................................................................................................
Roof Covering:...........................................................................................................................................................................
Garaging: .........................................................................................................................................................................................
Floor Area: .....................................................................................................................................................................................
Have the works commenced? ❑ YES ❑ NO
If Yes, please provide details: ...................................................................................................................................
Stage of works to complete: .....................................................................................................................................
Detailed explanation of why not insured prior to commencement: ..................................
...................................................................................................................................................................................................................
...................................................................................................................................................................................................................
...................................................................................................................................................................................................................
Cost to complete:...................................................................................................................................................................
Estimated Value of completed work:..................................................................................................................
Estimated Start Date: .........................................................................................................................................................
Estimated Completion Date: .......................................................................................................................................
Owner Declaration
Have you ever had insurance declined or cancelled by an insurer
or had any special conditions imposed? ❑ YES ❑ NO
If Yes, Please provide details .....................................................................................................................................
...................................................................................................................................................................................................................
...................................................................................................................................................................................................................
...................................................................................................................................................................................................................
Have you ever had any claims in excess of $2,000? ❑ YES ❑ NO
If Yes, Please provide details .....................................................................................................................................
...................................................................................................................................................................................................................
...................................................................................................................................................................................................................
Are there any matters, which you should reveal
which may affect our decision to insure you? ❑ YES ❑ NO
If Yes, Please provide details .....................................................................................................................................
...................................................................................................................................................................................................................
...................................................................................................................................................................................................................
Is there any excavations more than 1.5 metres? ❑ YES ❑ NO
Is there any work on the boundary of the property? ❑ YES ❑ NO
Please do not sign this form until you have read and
understood this declaration and all information
contained on this form whether you have filled in the
form yourself or it has been completed on your behalf.
If there is anything about which you are unsure please
contact BuildSafe.
I/We, the owners named above
● Acknowledge that I/ we have read and understood the
IMPORTANT MATTERS that you have put before me/us and the
IMPORTANT INFORMATION.
● Declare that all information given in this Proposal Form and any
attachments is true and correct.
● Understand that no insurance is in force until the Insurer has
accepted this Proposal Form and issued a Certificate of
Insurance.
● Undertake to ensure that all subcontractors or builders engaged
by me/us have their own liability insurance.
● Authorise the Insurer to give to, or obtain from, other insurers or
insurance reference bureaus, any information about these
insurances or any other insurance of mine/ours including this
completed Proposal Form and my/our claims history
● Understand that any statement made in this Proposal Form will be
treated as statement made by all persons to be insured.
Signed for and on behalf of (the applicant/s)
Signed .............................................................................................................................................................................................
Dated: ...............................................................................................................................................................................................
“We acknowledge that the personal information collected from
me/us is collected for the purpose of processing this application, for
the development of products and services, and to allow BuildSafe
Insurance Brokers P/L to market products and services.
If I/we do not provide relevant information, I/we acknowledge that
BuildSafe Insurance Brokers P/L may be unable to process my/our
application. I acknowledge that information may be disclosed to:
● BuildSafe Insurance Brokers Pty Ltd, our intermediary
● Claims assessment participants (for instance an assessor,
investigator and/or loss adjuster)
● Other reputable service providers (for instance mailing houses
and
● Underwriters, who are responsible for all or part of the risk under
a contract of insurance.
We acknowledge that I/we have rights to access my/our personal
information held by BuildSafe Insurance Brokers P/L in accordance
with the National Privacy Principles”
PLEASE NOTE:
A QUOTE IS VALID FOR 30 DAYS
Module 3
A u s t r a l i a n O w n e r B u i l d e r s - T h e C l u b , 5 Pe n i n s u l a B l v d , S e a f o r d , V i c 3 1 9 8
Phone: 1800 822 220 – Fax: 03 9773 6351 – Email: info@ownerbuild.com.au – Website: www.ownerbuild.com.au
Insurance
Difficulties
Your insurer may refuse to
insure or ask you for more
information to ascertain their
risk if,
■ Heritage listed property
■ Kit home
■ Project taking longer
than 18 months
■ Major excavations
■ Removing load
bearing walls
■ Demolition
■ Piling & shoring
■ Project already started
■ Previously insured or
policy lapsed
“Helping owner Builders since 1987”
3.2 Site Clearance:
The building envelope should be stripped of unwanted shrubs, trees (subject to council
approval), long grass etc that could get in the way of the excavation contractor, set-out
specialist, concreter, or bricklayer, with firm going provided for delivery trucks.
3.3 Land survey
If your block is sloping and/or undulating, it is advisable to pay for a land surveyor to plot its
levels. This survey will produce a plan of contours of the land indicating slopes in all
directions, and will be invaluable to your draftsperson/designer, who will use the contours to
help design the dwelling.
The same survey and map of contours will assist in calculating the extent of excavations
required (cut and remove/cut and fill) to accommodate the building; it will provide a true
record of boundaries, and also will assist in designing drainage runs (storm water and
sewerage).
3.4 Rough Set-out
This can follow stripping from the site any interfering trees or shrubs, and other superfluous
vegetation. Shrubs and long grass also would get in the way of the string lines for the
building set-out. The rough set-out is done where significant excavations are required either
for installation of a concrete slab floor, or where advantage is to be taken of the slope(s) to
provide a split-level floor plan, or basement area.
The rough set-out need only be indicated by a series of wooden stakes to show the
excavating contractor exactly where, and how deep, cuts/fills are to be made. However, even
this rough set-out is best done by the land surveyor, because careless calculations at this
stage could prove expensive — not enough, or too much, soil excavated will cost you
money once construction gets underway.
3.5 Drainage Trenches
These can be dug by the contractor who excavates to the contour plan, or by the plumber
and/or drainage contractor. Some plumbers are happy to do both the drainage excavations
and the drainage connections (pipes). Others prefer to hand over drainage work to a
specialist.
3.6 Building Set-out
The building set-out establishes precisely the building lines, taking into account the position
of easements and boundary set-backs. Easements (land reserved for underground mains
drainage pipes) can be either along the side of a block, at the rear, or both, and are shown, if
they exist, on the Title to the Land. Usually they are along the rear fence approximately within
a two-metre wide area. Construction over the easement, even of outbuildings, is strictly
forbidden; it must be left clear to allow future maintenance work by the water/sewerage
authority.
There are specialist firms who do building set-out work, usually for quite a small fee. Better
to pay a specialist than attempt it yourself, because the set-out lines must be squared and
perfectly positioned, true to the working drawings, and in accordance with easements and
boundary set-backs.
The importance of the accuracy of the building set-out in the construction process cannot
be over-emphasised.
The area for the concrete floor slab, or the concrete strip footings (if the house is to have a
timber floor system) will be dug and poured to the building lines. The lines are indicated by
string stretched between nails driven into the tops of wooden marker hurdles, put in by the
set-out specialist.
The bricklayer and/or carpenter must be able to rely on the accuracy of the set-out. If the
lines run out of true, so will the construction work that follows.
3.7 Retaining Walls
Retaining walls might be needed to hold back earth that has been excavated/cut to facilitate
changed levels, i.e. a basement area. If they are, they will be shown as part of the working
drawings on the building plan.
In most cases, retaining walls will be designed independently by a structural engineer. The
engineer is usually commissioned by the architect/draftsperson to supply detail drawings
AOB Course - 21
Module 4
A u s t r a l i a n O w n e r B u i l d e r s - T h e C l u b , 5 Pe n i n s u l a B l v d , S e a f o r d , V i c 3 1 9 8
Phone: 1800 822 220 – Fax: 03 9773 6351 – Email: info@ownerbuild.com.au – Website: www.ownerbuild.com.au
Contracts
All subcontractors and
workers should be engaged
under a contract and not
employed at an hourly rate.
Paying an hourly rate could
deem the owner builder or
renovator as an employer.
■ PAYE tax
■ Workers compensation
■ Sick leave
■ Other benefits
“Helping owner Builders since 1987”
and computations to prove the integrity of certain critical parts of the structure, be they
retaining walls or other load-bearing elements, i.e. columns, beams, lintels, trusses etc.
KNOWLEDGE: Although minor changes may be made to the building plan during
the work, i.e. a window size, or a room dimension (provided you advise your PCA), on no
account should a structural engineer’s design, for any part of the works (retaining walls or
otherwise) be altered, adjusted or ignored unless changes are approved/re-designed by the
engineer.
3.8 Temporary Site Services
As the owner-builder, you will need to organise a temporary toilet and temporary electrical
power pole/box, both usually hired from a specialist contractor for the duration of the works.
The hirer arranges delivery and installation, and will collect the equipment once the project is
finished.
SUMMARY of Module 3
Your tasks as the Owner-Builder -
1) Rough set-out for cut/fill excavation, if needed.
2) Organise a land survey if required (land surveyor).
3) Order building set-out (specialist contractor).
4) Contact plumber/drainer to plan trenches and outlets for storm water and sewer.
5) Order temporary site services (power, toilet etc).
6) CHECK with your local council if your building site is in an area where protection
measures must be taken against infestation by TERMITES.
If termite protection is required, it is your duty, as the owner-builder, to select the method to
be used and ensure it is installed. Consult a specialist pest control firm as early in the
exercise as possible, because different systems require access at different stages of the
building works.
Module 4
4.0 CONSTRUCTION STARTS
This module covers installation of the concrete floor slab or concrete strip
footings/base brickwork, your concretor and bricklayer, workplace planning prior to
erection of timber framing.
If your project is to have a concrete floor, a steel-reinforced slab, poured in one operation,
incorporates both the internal floor system and the perimeter “footings” to bear the weight of
the building. For a timber floor (brick veneer), the concrete footings are placed into perimeter
trenches, then loaded with base brickwork built to floor level.
4.1 Concrete Floor Slab:
Preparing for, and placing, the concrete floor slab is a specialist operation. The owner-builder
should call in a concreting contractor to excavate for edge and internal beams, fix formwork,
position the waterproof membrane and the reinforcing steel as specified on the working
drawings, advise the owner-builder to call for a STATUTORY INSPECTION, then, once
approved, complete the slab to finished stage.
KNOWLEDGE: As the Owner-Builder, you could perform a valuable task that
contractors often do not attend to — curing of the concrete.
Once the slab has firmed up to a stage where it can be walked on without damaging the
surface, it is ready for curing. Cover it with black plastic sheet, holding down the edges with
bricks.
If left in place (with formwork intact) for at least a week, this covering will greatly strengthen
the concrete by retarding the drying-out process.
The longer concrete is cured (either by spraying it with water to keep it constantly damp, or
by sealing it with plastic sheeting), the stronger it will be and the better it will resist cracking.
INSIST:
• That the concrete used, whether for a floor slab, strip footings, or a driveway, is AIRENTRAINED
(containing an additive that increases penetrative flow, reduces the amount
of surface bleed-water, and produces a stronger concrete).
• That the concrete, as it is placed/poured, be MECHANICALLY VIBRATED. Vibration is
22 - AOB Course
Module 4
A u s t r a l i a n O w n e r B u i l d e r s - T h e C l u b , 5 Pe n i n s u l a B l v d , S e a f o r d , V i c 3 1 9 8
Phone: 1800 822 220 – Fax: 03 9773 6351 – Email: info@ownerbuild.com.au – Website: www.ownerbuild.com.au
Contracts
Contracts set out an
agreement on the,
■ Scope of works
■ Price & Payment terms
■ Special conditions
■ Right to hold payment or
recover costs for non
performance.
“Helping owner Builders since 1987”
done with a hand-held electric “poker” and ensures the concrete rids itself of air-voids,
fills all spaces, and is denser/stronger when set.
• That slab formwork not be removed until one week’s curing has occurred.
4.2 Concrete Strip Footings
Again, a concreting contractor might be commissioned to excavate the trenches according
to the working drawings, then place reinforcing steel and pour the concrete. Alternatively, an
excavating contractor could be hired, with the owner-builder directing depths, widths and
stepping of the trenches.
Either way, you (the builder) will be responsible for ensuring that trench bottoms are level,
sides square, the bottom clear of excess water/sludge, and that reinforcing steel trench
mesh is properly positioned.
Once trenches have been inspected and approved by your Principal Specifying Authority,
concrete can be placed.
INSIST:
• That trenches are clean, square-sided, and firm on the bottom.
• That reinforcing steel trench mesh is free of rust, and held up on bar chairs to achieve
at least 40mm cover of concrete top, bottom, and edges.
• That stepping of the footing follows brick courses, and is reasonably level
(within 10mm).
The concrete strip footings should be allowed five days to gain strength before bricklaying
commences.
4.3 Building Materials
Enough bricks, sand, and cement etc to build the base can now be delivered, unless there is
sufficient space on site for more. If they are concrete bricks or blocks, they must be kept
completely dry, and it will pay the owner-builder to ensure they are covered overnight.
Usually, the bricklayer will include in his quote all sand, cement and lime for the mortar. A
water supply must be readily to hand. The bricklayer will bring his own labourer who will
stack bricks close to the work, and keep up a supply of fresh mortar to the bricklayer.
KNOWLEDGE: Poorly-proportioned mortar can weaken a brick wall by 25% to
35%. The materials should preferably be batched using a bucket or similar container when
mixing, rather than gauged by shovelfuls. Some mortar mixes are suitable for clay bricks,
some for concrete bricks/blocks, some for either clay or concrete.
The bricklayer also will supply, erect and dismantle scaffolding, if it is required.
Arrangements with regard to payment should include a proper record of materials purchased
by the bricklayer (sand etc). If this is not seen in writing, over-payment is more likely than
under-payment!
Bricklayers usually charge per 1000 bricks laid. Therefore, an accurate record of the number
of bricks ordered (and subsequently charged for as laid) must be kept. It is also common for
extra to be charged for scaffolding work, and for rendering/bagging.
The bricklayer’s first task, with the owner-builder standing by, is to shoot levels to establish
the finished height of the base brickwork. He and his labourer will do this using a laser or
telescopic leveling instrument, but you need to indicate and approve of the proposed finished
height of the subfloor.
The base brickwork (9-inch or a combination of 9-inch and attached piers, depending on the
height required) is built on the strip footings, and proceeds to timber floor level. After this
stage is completed, the bricklayer will leave the job, and will not normally be needed again
until the carpenters have completed floor, wall and roof framing.
OWNER-BUILDER CHECK!
CONCRETOR: • That plastic sheeting remains in place for one week so that full
DRYING of the concrete slab (where applicable) is completed
• That the full complement of steel trench mesh (reinforcement) is used in
concrete strip footings.
• That all concrete is MECHANICALLY VIBRATED during placement.
BRICKLAYER: • That sufficient VENTILATION grilles are built into to base brickwork
(under-ventilation of timber floors is vitally important).
AOB Course - 23
Module 5
A u s t r a l i a n O w n e r B u i l d e r s - T h e C l u b , 5 Pe n i n s u l a B l v d , S e a f o r d , V i c 3 1 9 8
Phone: 1800 822 220 – Fax: 03 9773 6351 – Email: info@ownerbuild.com.au – Website: www.ownerbuild.com.au
Contracts
In New South Wales it is a
requirement of the
contractor to,
■ be licensed and provide
written contracts for work
over $1,000
■ Provide warranty cover for
works over $12,000
“Helping owner Builders since 1987”
• How many bricks are actually laid, as opposed to broken or accidentally
buried/lost. You will pay for these AS IF they were laid if a careful record is
not kept.
SUMMARY of Module 4
Your tasks as the owner-builder -
1) For a concrete slab floor system - employ a specialist contractor.
2) For brick veneer with a timber floor system - organise excavation of trenches for strip
footings and placement of concrete, plus steel reinforcement (trench mesh).
3) Order enough bricks for the base brickwork (to floor level).
4) Order sand, cement, lime etc (mortar), or agree that bricklayer does so.
5) Ensure that there is temporary power, water and toilet facilities IN PLACE on site.
Module 5
5.0 WALL AND ROOF FRAMING
This module explains which materials you need to have on site, and how to support
the work of the framing carpenters to structural completion.
The assembly and erection of the wall and roof framing represents the critical structural
element of your building, and is a job for the skilled carpenter. The importance of bracing of
walls and roof, and the safe connection of the roof to the walls, cannot be over-emphasised.
5.1 Delivery Time
Once either the slab (concrete floor) or the base brickwork (timber floor) are completed, a
substantial amount of materials will need to be delivered to the site.
In the case of a brick veneer house being built on a concrete slab floor, the carpenters are
the first trade in once the slab has set, followed by the bricklayers. For a brick veneer with
timber floor, it is the other way around.
Either way, you will need to organise delivery of the right materials at the right time, so as
not to hold up the trades. (See Module 2, Ordering of Materials).
For a timber floor system using particleboard or plywood as the flooring surface, the first
timber delivery should be of bearers, floor joists, and the flooring sheets. A day or two later
(usually) all the remainder of the wall framing material will be required. (It might all be
required on site all at once, but this depends on the space available. Ask the carpenters what
they prefer).
Prefabricated wall frames are a second option. From your building plans, a fabricator will
supply a quotation. And if you order both wall frames and roof trusses from the one
company, you can expect a discount. Prefabricated frames will be delivered to the site and
should be clearly marked as to what goes where.
If you order timber for the carpenters to build the frame on site, the components will
comprise top and bottom plate material, studs, bracing pieces for the walls, and all roofing
members if the roof is also to be “built up” by the carpenters.
However, roof trusses have almost superseded the traditional built-up roof, and if trusses are
the method designed for your project, these will be required on site immediately after the
wall framing is erected, unless the carpenters, for any reason, ask for them to be delayed.
Roof trusses are large heavy objects, and if they arrive on site too early, they will almost
certainly be in the way of the trades. Normally they are delivered by a truck fitted with a
crane, and are lifted in packs straight off the vehicle and up onto the tops of the completed
wall frames where they can remain safely at rest until the carpenters are ready to raise them
into position and fix them.
KNOWLEDGE: Roof trusses are not a “short cut” to roof carpentry. They do save
a great deal of labour, but are an engineer-designed factory-assembled product and are
extremely strong. Their weight is designed to be carried entirely by the exterior walls, and
they are never in load-bearing contact with interior walls.
5.2 The Carpenters
The Carpenters would normally be on site when the first delivery of timber arrives. If your
project uses a timber floor, the bricklayers will have built the floor piers some days previous.
The carpenters’ first task will be to fix the floor bearers to the brick piers and to the
24 - AOB Course
Module 5
A u s t r a l i a n O w n e r B u i l d e r s - T h e C l u b , 5 Pe n i n s u l a B l v d , S e a f o r d , V i c 3 1 9 8
Phone: 1800 822 220 – Fax: 03 9773 6351 – Email: info@ownerbuild.com.au – Website: www.ownerbuild.com.au
Owner
Builder
Home
Warranty
In New South Wales it is a
requirement of the renovator
or owner builder to:
■ Provide home warranty
insurance for any
domestic building where
major domestic building
works over $12,000 have
been carried out in the
previous 6 years.
■ Includes renovation,
extensions, new
constructions & major
landscaping works.
This still applies even where
no building permit has
been issued.
“Helping owner Builders since 1987”
‘attached’ brick piers (part of the base brickwork), and then nail floor joists to the bearers.
They will ensure that the floor joists are absolutely level before nailing and gluing the waterresistant
particleboard or plywood flooring sheets to the joists.
The flooring sheets, once secured, provide a safe, level working platform on which will be
assembled, and then erected, all the wall frames.
If your flooring is to be floorboards rather than sheeting, they will be fixed, room by room once
the roof covering is in place (lock-up stage) to ensure they are protected from the weather.
If your floor is a concrete slab, only wall and roof framing (or trusses) will be required,
because wall frames are fixed directly to the slab.
KNOWLEDGE: Tongued-and-grooved floorboards should be stored in the partlyfinished
building (brick veneer complete, roofing on, windows in) for several days before
being nailed down. This waiting period is to allow their moisture content to adjust to the
interior conditions. If this is not done, they may warp after fixing.
There is very little for the owner-builder to do at this stage, other than to ensure the
carpenters have all the material they need. They will be working to the building plan, they
have done it all before, and will not appreciate an Owner-Builder who fusses around them for
the best part of the working day.
Ideally, the owner-builder (or a family member or friend) should be on site early in the day
for about an hour, and again in the afternoon, just to check if everything is running smoothly.
Sometimes, extra materials will have to be ordered, or there might be something missing
from a delivered order.
Give the carpenters a phone number where they can contact you, or better still, authorise
them at the outset to contact your timber supplier if they are short of anything essential, so
that they can order it on your behalf.
Make sure, however, that you know what it is they have ordered. Most carpenters will make
a written note of anything they had to obtain quickly and then hand to you the docket for
record-keeping.
Wall frames and roof trusses can be fixed in position by professional carpenters in
remarkably little time, depending of course on the size and complexity of the building.
Once the wall frames are erected, they will fit the window frames, which can be either preglazed
or fitted with glass later. Usually they are ordered pre-glazed (take care to avoid
breakages on site).
Once the frame, including the roof, is built, it is your duty to call for a frame inspection. Once
approved, and not before, the roof can be loaded with the weight of its metal sheeting or its
roofing tiles.
5.3 The Electrician
With the wall and roof framing up, and the roof covered, the next trade required on site is the
Electrician to do the wiring “rough-in”.
This cannot be done with plasterboard in place. The electrician will run all wiring and
connections (including TV points) through the house, drilling holes in studs and top plates so
that once the plasterboard is fixed and finished, all cabling will be hidden, but with vital ends
poking out in the right places (for the attachment later of light switches and power points).
5.4 The Plumber
Also at bare frame stage, the Plumber will arrive to do his rough-in. For this he also notches
and drills the frame where needed, and again will be working to the building plan.
Keep well out of the way of the various follow-on trades. They may not appreciate an overattentive
owner-builder, because they, as well as the carpenters, should know what they are
doing and more than likely will need no instructions other than those written on the building
plan and specification. Unless, of course, they ask, or you insist (you are entitled to).
KNOWLEDGE: This is not to suggest that you should leave everything to your
tradespeople. You are, after all, the Builder, and your job is to ensure that things have been
done as they should have been. Good relations with the trades, however, is very important.
Be reasonable and personable, but not condescending.
The plumber also will be preparing to fix rain gutters to the roof facias so that the roofing
contractor can follow on with metal or tile coverings (the carpenters will have fixed the roofing battens).
Usually the plumber will have quoted to supply all his materials e.g. copper piping,
connections, gutters and downpipes etc.
AOB Course - 25
Module 6
A u s t r a l i a n O w n e r B u i l d e r s - T h e C l u b , 5 Pe n i n s u l a B l v d , S e a f o r d , V i c 3 1 9 8
Phone: 1800 822 220 – Fax: 03 9773 6351 – Email: info@ownerbuild.com.au – Website: www.ownerbuild.com.au
Owner
Builder
Home
Warranty
Policies are available from
BuildSafe Building Services.
A defects report from an
approved building inspector
must be provided before a
policy can be issued.
Renovators & owner builders
cannot sell buildings which
are off the plan.
“Helping owner Builders since 1987”
5.5 Telecommunications
The telephone company also should be called in at bare frame stage to prepare your home
for eventual connection to the telecommunications network. Do not forget to advise them
when the frame is complete, because they cannot be expected to run their wiring through
walls that are encased in plasterboard.
OWNER-BUILDER CHECK!
CARPENTER; • That stumps (if used) are set into the ground STRAIGHT, and correctly
spaced, according to the building plan.
• That walls and roof have sufficient BRACING, either special-purpose light
steel angle (walls and roof) or special-purpose Masonite or plywood
sheeting (walls).
• That window frames are correctly packed into the walls at the sides and
are FLASHED around sides and under the sills.
• That roof trusses bear directly down onto studs of exterior walls. If not,
the exterior walls must be built with a DOUBLE TOP PLATE.
• That the carpenters STRAIGHTEN the inside surfaces of all walls after
erection. This is a standard procedure, but can be forgotten, or done
carelessly. If not straightened properly, subsequent plasterboard will be out
of true.
ELECTRICIAN: • That the electrician places light switches and power points EXACTLY
where you want them (per working drawings).
PLUMBER: • That the plumber cuts NOTCHES in studs for in-wall piping only according
to the minimum depth necessary. Over-notching weakens the structure.
• That enough DOWNPIPES are fitted to drain your roof area efficiently
(as per draftsperson’s roof plan).
• That the building site is CLEARED of scattered rubble and timber/metal
offcuts etc, preferably at the end of each day.
KNOWLEDGE: Timber wall framing (studs nailed to top and bottom plates), and
roof framing, would have virtually no strength without frame-bracing. Ideally the brace
should be at an angle of 45 degrees, but should not be lower than 45 nor greater than 60.
Bracing owes its effectiveness to the triangle thus formed, the theory being that unless one
of the members breaks, the triangular shape is unalterable.
SUMMARY of Module 5:
Your tasks as the owner-builder
1) Decide whether your carpenter will build the wall frames or you use prefabricated
wall frames.
2) Order stumps/bearers/floor joists (timber floor). If particleboard floor sheeting, order
sheets; if floorboards, order, but do not take delivery until lock-up stage.
3) Order roof trusses (or roofing timber). Call for delivery once wall frames are complete.
4) With frame complete, and with sisalation wrap fixed to outside of frame, call in
electrician (rough-in).
5) Also call in plumber (rough-in) and fix rainwater gutters for roofer to work to.
6) Call in roofing contractor.
7) Insulation, i.e. batts, to walls and ceilings.
Module 6
6.0 LOCK-UP AND FIT-OUT
This Module explains what to look for as the building proceeds to lock-up and then fit-out
stage, the work of the bricklayer, the plasterboard contractor, the electrician, plumber, and
carpenters.
The work required to achieve lock-up includes the bricklayer (outer skin/veneer), the
carpenter (external doors) and the glazier if windows are not pre-glazed. Final fit-out and fix
will include plasterboard to walls and ceilings, the fitting and hanging of doors, architraves,
skirting boards, electrical fit-off, plumbing fixtures, bathrooms, laundry, and kitchen; the
latter three (wet areas) are covered in detail in Module 7.
26 - AOB Course
Module 6
A u s t r a l i a n O w n e r B u i l d e r s - T h e C l u b , 5 Pe n i n s u l a B l v d , S e a f o r d , V i c 3 1 9 8
Phone: 1800 822 220 – Fax: 03 9773 6351 – Email: info@ownerbuild.com.au – Website: www.ownerbuild.com.au
Australian
Owner Builder
Services
“Helping owner Builders since 1987”
6.1 To Lock-up Stage
Wall frames erected, roof or roof trusses up, window frames and exterior door frames fixed
in position — now for the return of the Bricklayer.
He will complete the outer skin of brickwork — up to the eaves, around window frames and
exterior doors.
More sand, cement and lime will be needed, as should a sufficient quantity of brick ties, and
on hand by now (supplied either by the bricklayer or the owner-builder) should be all the
steel angle/flat bar lintels (where the design requires it) to be built into the brickwork above
openings (windows and doors).
The electricity meter box also should have been installed (by the electrician) so that the
bricklayer can “brick it in”.
Once all brickwork is finished to a dried and set stage, cleaning (unless the bricks are to be
rendered or bagged, in which case there is no need) should proceed. Engage a specialist
brick cleaning contractor. The job can be done by anyone with a nylon scrubbing brush, and
a bucket of diluted hydrochloric acid (no stronger than 1 part acid to 10 parts water), but
the amateur will take 40 times as long as the professional, and it is not comfortable work.
KNOWLEDGE: Brick ties are an important component in the structure. Without
them, the brick veneer is unstable, because they tie the brickwork to the timber frame. The
bricklayer builds them in as he proceeds - one end sits in the wet mortar, and when the
mortar has dried, the other end of the tie is screwed or hammered into the studs.
INSIST:
• That mortar is of a suitable strength for the bricks used and that the mix remains
consistent from start to finish.
• That brick ties are used in sufficient quantity and are correctly installed.
• That attached brick piers are bonded into the base brickwork.
• That an approved dampcourse is built into the brickwork at floor level.
• That droppings of wet mortar are NOT allowed to remain on the bottom plate of the wall
frame, where they can promote dampness and, in due course, damage to the structure.
KNOWLEDGE: In 1989 as a result of the Newcastle earthquake, 13 persons were
killed. The inquiry that followed found that the majority were killed as a result of faulty
masonry/brickwork, faulty installation of reinforcement/brick ties, or no reinforcement/brick
ties installed at all.
6.2 To Fit-out Stage
The owner-builder may now either insert insulation to the exterior walls and the ceiling
space, or request that the supplier installs it.
Rockwool batts are recommended, because they give a higher insulating rating per thickness
than any other material.
Placed into walls with 90mm studs (the standard), insulation batts 75mm thick not only
provide a rating of between R2.0 and R2.3, but allow an air space between themselves and
the sisalation pinned (by the carpenters) to the outside of the wall frame. This airspace
improves the insulation factor and discourages condensation.
OWNER-BUILDER CHECK!
PLUMBER: • That roof flashings are in place around upstands (flues, vent pipes) so
that rainwater cannot penetrate the building and damage plasterboard.
ELECTRICIAN: • That once fixed and finished (after plasterboard) and connected to the
electricity supply, ALL light switches and power points are functioning.
6.3 Plasterboard Contractor
Plasterboard can now be fitted to walls and ceilings. Most contractors prefer to give a
preliminary quotation off the plan (if at all), and then visit the building at lock-up stage to
measure up for the number and size of sheets required.
From this measuring exercise, a firm quote can be given.
Fixing plasterboard is full-on manual work, and the owner-builder should keep out of the
tradesmen’s way. The sheets themselves are heavy and awkward to manoeuvre; good clear
space is required by the men, and the work is noisy, hectic and messy.
No plasterer, however, can do a good job of fixing plasterboard to walls that are not straight.
AOB Course - 27
Helping Owner
Builders Since 1987
Module 6
A u s t r a l i a n O w n e r B u i l d e r s - T h e C l u b , 5 Pe n i n s u l a B l v d , S e a f o r d , V i c 3 1 9 8
Phone: 1800 822 220 – Fax: 03 9773 6351 – Email: info@ownerbuild.com.au – Website: www.ownerbuild.com.au
Australian
Owner Builder
Services
Established in 1987,
Australian Owner Builders
have been providing
information and help for over
17 years.
We provide a voice for owner
builders and renovators in
the building industry.
• Club Membership
• Owner Builder
Resource Centre
• FREE Advice
• Owner Builder Workshops
“Helping owner Builders since 1987”
The carpenters should have straightened walls, but if they have not, it is likely that the
plasterer will bang up the sheets anyway because he will assume they have been.
He can hardly be blamed for this - it comes down to you, the owner-builder to make sure
everything is ready for the plasterer to start work before you call him in.
KNOWLEDGE: It is details such as the straightening of interior wall surfaces and
the supply of proper fixing for plasterboard that must be attended to by the owner-builder. If
a trade turns up and cannot proceed because a previous trade was not supervised properly,
disputes can arise and subcontractors might walk off the job, perhaps never to return.
INSIST:
• That the carpenters inform you that every part of the framework is complete and
READY for 1) the electrician, 2) the plumber, 3) the plasterer.
As he works around the rooms, the plasterer will punch holes in the plasterboard sheets to
allow him to pull through all electrical wiring that was clipped into position during the
electrician’s rough-in. Then, when the plasterboard is completely fixed and finished, the
electrician will connect this wiring (now clearly exposed for him to see) to the switches and
power points.
With sheets and cornices complete, the plasterer will then sand down all surfaces to a state
where they are ready for painting (Module 8).
6.4 The Electrician
The electrician should now be called back to attend to all wiring ends and connect light
fittings, switches, and power points. He will be installing, or will previously have installed,
the meter box layout (fuses etc), but will not apply for a supply of electricity until later, after
which the circuit will be tested for approval by the electricity supply authority.
Once the power is on, and all electrical outlets screwed and wired into place, the ownerbuilder
should try out EVERY light switch and power point. A careless electrician can
occasionally make a poor connection here and there, and if this is the case, the electrician
will have to rectify the fault.
6.5 The Plumber
All outlets for taps, shower heads etc will be poking through the plasterboard/blue
board/Villaboard ready for the plumber to fit the taps, seal them, and test that they are
working efficiently.
The plumber will also, at this fit-out stage of his work, install the hot water service, washing
machine, dishwasher, toilet pans, wash basins etc, and complete the gas fit-off.
Once this is done, you can apply to the gas supply authority to have your gas meter
installed.
6.6 The Carpenter
The structural frame carpenter now becomes the fixing carpenter.
Once lock-up stage is reached, owner builders believe they are close to the end of the
project. Unfortunately, there is a great deal of work to be done.
Architrave and skirting timber should now arrive on site, and be stacked inside. The
carpenter might be asked to draw up a cutting list that you can use to order economical
lengths.
He will cut and nail up the architraves around doorways and windows, and will do the same
with the skirting boards.
He also will fit internal door jambs and frames, hang the doors, fit locks/latches and
build/install stairs and steps.
Unless a separate contractor has been hired, the carpenter will fix and install
kitchen/bathroom/laundry cupboards, vanity units, wardrobe shelving and fittings.
KNOWLEDGE: It is a good idea, especially if the owner-builder plans to do the
painting, to apply some paint BEFORE the fit-out-and-fix carpenter starts. Using a paint
roller, quickly apply plasterboard sealer paint, then two top coats in the desired colour, only
around edges such as door frames and the bottom of walls. These areas are where
architraves and skirting boards will be attached. Part-painting first means no intricate
“cutting-in” brushwork is needed, especially if time can be found also to paint the
architraves and skirtings before they too are nailed up. After that, once the fix is complete,
only touching-in around edges with a small art brush will be required.
28 - AOB Course
Module 7
A u s t r a l i a n O w n e r B u i l d e r s - T h e C l u b , 5 Pe n i n s u l a B l v d , S e a f o r d , V i c 3 1 9 8
Phone: 1800 822 220 – Fax: 03 9773 6351 – Email: info@ownerbuild.com.au – Website: www.ownerbuild.com.au
Essential
Insurance
Crucial to the successful completion
of any project is correct and
sufficient insurance. While a major
incentive of owner building is to save
money the project may, in fact, cost
you more should something go
wrong without adequate cover.
Important issues to consider are,
Construction & Public Liability
Insurance
• Arrange cover BEFORE you
start the project.
• Ensure the cover is adequate
to meet the realistic cost of
replacement.
• If extending or renovating
check your home & contents
policy to confirm cover and
arrange extra cover if
required.
• Arrange contracts with all
tradesmen, insist on a copy
of their Public liability
insurance and warranty of all
works over $12,000 BEFORE
they start.
Your tradesman has no Public
Liability insurance? BuildSafe
can arrange immediately over
the telephone.
Vic (03) 9773 6777
Interstate 1800 091 007
“Helping owner Builders since 1987”
OWNER-BUILDER CHECK!
• That architraves and skirtings have been neatly mitered, joints flush and nails punched
in, ready to be filled and sanded smooth at painting stage.
• That doors are hung with a suitable gap at the bottom to clear floor coverings
(carpet, tiles, vinyl).
• That all doors, including cabinet doors and drawers, open and shut smoothly.
SUMMARY of Module 6:
Tasks for you as the owner-builder
1) Clean up site
2) Call back the bricklayer (all bricks required to finish the work should now be on site).
3) With brickwork complete, and the mortar set up, call in the plasterboard contractor to
fix and finish all plasterboard sheets, walls and ceilings.
4) Ensure all fixing material (architraves, skirting boards, doors, locks and latches etc) is
on site for fixing by the carpenter (after plasterboard is complete).
5) Call in the carpenter, electrician, plumber. All three can work together at this stage
without getting in each other’s way.
6) Kitchen cupboards, vanity units etc will now be secured in position.
Module 7
7.0 FINISH TO WET AREAS
Sealing of bathroom and other wet areas, floor and wall tiling, waterproofing of shower
bases and spa plinths, kitchen taps, kitchen appliances, connections to waste outlets.
Carpenter, plumber and tiler layer all have work to do in these areas. They include
bathrooms, toilets, laundry, and kitchen. Floors and walls have to be prepared for tiling,
vanity units must be fitted, baths and showers installed, and edges, particularly around
shower bases and spa plinths, must be sealed against the intrusion into the structure of
moisture.
7.1 The Bathroom
Apart from fixing architraves and skirtings and hanging doors, the carpenter will fit the bath.
Baths are manufactured with a rim, or lip around their perimeter. This lip must be housed
into the wall studs by about 10mm, and the bath fitted into the timber framing.
The carpenter also will build a dwarf framed wall, just high enough to support the other
edge of the bath. This dwarf wall usually will be tiled.
The carpenter will fix the bath horizontally level into the frame. Even so, bath water will drain
into the outlet because the base of the bath is cast to a fall towards it.
Any vanity units also will be fixed in position by the carpenter.
The plumber usually sets in place the shower base, and he will have provided breeches for
its taps and shower head. The tile-layer will tile around these, cutting holes in tiles to
accommodate them.
Modern tile bases are moulded to form a flashing with the Villaboard tile backing to wall(s)
and the tiles themselves as they overlap the rim of the base. However, where tiles do meet
this lip, the lip of the bath, and/or the surface of a vanity unit, a flexible sealant should be
used at the junction instead of tile grout.
This flashing of wet areas is particularly important if you have a timber floor. Moisture that
penetrates joints will rot floor, skirting boards and even floor joists/bearers.
Usually, a specialist contractor will fit the shower screen after wall tiling is completed, and
will seal the screen with silicon.
Floor tiles most often will be laid upon fibrous cement sheet, which is usually nailed to the
floor surface. They can be adhered directly to structural particleboard flooring without the
use of an under-sheeting, using a suitable adhesive which is rubberised, and which gives a
slightly cushioned feel underfoot.
Floor tiles in wet areas should preferably be non-slip. The joints between sheets (floor or
wall) should be properly sealed with a mastic or similar product, including around the edges
abutting skirtings, and particularly around backing tiles above vanity units and the bath.
Normal grout can crack and crumble away from these junctures.
AOB Course - 29
Module 8
A u s t r a l i a n O w n e r B u i l d e r s - T h e C l u b , 5 Pe n i n s u l a B l v d , S e a f o r d , V i c 3 1 9 8
Phone: 1800 822 220 – Fax: 03 9773 6351 – Email: info@ownerbuild.com.au – Website: www.ownerbuild.com.au
• Budget Reports
• Estimating
• Quality Inspections
• Trade Network
• Advice Line
1300 733 730
www.homebuildingsystems.com.au
“Helping owner Builders since 1987”
7.2 The Laundry
The same rules for waterproofing of edges apply. The plumber will be at work in the laundry,
as will the tile-layer, and if there are cupboards, disappearing ironing boards and such, the
carpenter will fit these.
7.3 The Kitchen
Modern kit-form kitchens have become popular because of their lower price, but often the
one you really want will not quite fit your preferred layout, although adjustments can be made.
Specialist kitchen companies will measure your kitchen, then custom-manufacture
and install it.
Some carpenters also offer this service; if not, they will install units made off-site. This can
be an advantage, because it might mean that the one carpenter (or team of two of three)
could carry out every carpentry and joinery task for you.
In theory, if this is the case, each stage of the work will be done properly. No carpenter will
do a rough job on the frame, for example, if it is he who has to follow on with the fit-out,
then installation of the kitchen cupboards.
When ordering a kitchen layout, be sure to have settled on your choice of all appliances
(dishwasher, oven, hotplates, fume extractor, sinks etc). Their measurements must be
available to the kitchen manufacturer.
Naturally, as you hire essential specialist labour, you will talk to the tradesperson at some
length beforehand, so that it is clear what you want, and expect. A good tradesman will help
the owner-builder with technical queries. A bad one will not. Avoid the latter at all costs.
KNOWLEDGE: Joints between tiles should not be less than 3mm wide because
they expand with time, and can crack because of it. Wall tiling cannot be applied to ordinary
plasterboard. There are two choices - a special water-resistant plasterboard (Blueboard) or
Villaboard (fibrous cement sheet).
SUMMARY of Module 7
Your tasks as the owner-builder
1) Think about effective flashing to tiled areas.
2) Call in floor and wall tiler.
3) With tiling finished, call back plumber and electrician to fit and test taps etc, electrical
switches etc.
4) Think about painting - will you DIY or call in a professional?
5) Apply to your local council, or to your accredited certifier, for an Occupation Certificate.
Module 8
8.0 PAINTING AND DECORATING
This final Module discusses painting and decorating, which is as much a trade, in the right
hands, as carpentry and plumbing. Will you do the painting yourself, or hire a professional?
Painting is an ancient trade, and was an honoured one in Europe in the Middle Ages.
Apprenticeships with a Master were served for seven years or more. It still is a complete
trade, but it is one occupied by a number of ‘cowboys’. Owner-builders in NSW can do their
own painting, or they can search for a professional. Those who take the DIY option should
be aware it can be a long, hard road.
8.1 Doing It Yourself
You might save money, but a new house with, say, eight rooms will soak up a great deal of
paint, and a dedicated team effort is required to apply it. If you have family members and
friends who will chip in, each concentrating on one room, each with a set of tools (eight
paint rollers, eight sets of brushes, eight large drop-sheets, each with a step ladder, and so
on) it can be done.
But it is a daunting task. All members of the team must be committed, and they must have
the patience, time and energy to see things through to the end.
Plasterboard first must be given a coat of sealant. This is a special paint, although it looks
and works up like any other. A tip is to have the sealant paint tinted at the shop to the same
colour as the final coats.
30 - AOB Course
Module 8
A u s t r a l i a n O w n e r B u i l d e r s - T h e C l u b , 5 Pe n i n s u l a B l v d , S e a f o r d , V i c 3 1 9 8
Phone: 1800 822 220 – Fax: 03 9773 6351 – Email: info@ownerbuild.com.au – Website: www.ownerbuild.com.au
• Borrow Upto 80%
of End Valuation
• Lo Doc For Self
Employed
• Fully Verified
For PAYG
www.hfca.com.au
“Helping owner Builders since 1987”
You will need to apply one coat of sealant paint, then two coats of the normal paint, waiting
for each to become thoroughly dry before the next coat is applied.
Then comes the task of painting architraves and skirting boards, doors, window frames
inside and out, and all other details of the interior. If any of these are in a different colour to
the walls, some skilful “cutting-in” work will be required so that no blobs or smudges spoil
the effect.
This part of the painting (contrasting colours) can take a very long time and about a quarter
of the way through the job, you may wish you had hired a professional.
8.2 Hiring a Professional
When seeking a professional painter, you don’t want to end up with an amateur.
Study the Yellow Pages and your local newspaper for advertisements. Better still, ask around
among tradespeople, even builders. They probably will recommend a reliable painting firm -
one that has done work for them and proved to be satisfactory.
Painters will provide the manpower, speed, and quality finish that you need. They should/will
do the job properly, and will have the equipment to cope with heights.
They also can obtain discounts on paint that the DIY enthusiast will never be offered. This is
because they usually order from one supplier, and for performing that favour, the supplier
will sell to them in quantity at a low price.
They also have the skills that come from their training and experience, and the stamina to
keep going.
Obtain at least three quotes, but be wary of a quote that is appreciably lower than others. It
could mean (although not necessarily) that you will get substandard work.
Ask for the names and phone numbers of a few previous customers, and ring
them for an opinion.
The Education Division of Australian Owner Builders Pty Ltd sincerely hopes that you
have enjoyed this 8-hour correspondence course.
As soon as you feel comfortable with your appreciation of the information delivered,
contact our National Service Centre (1800 822 220) and we will mail or fax to you your
Assessment Test.
There are 25 questions, the answers to which are embodied in these Course Notes. If
you are unsure of the answer to any of the questions, simply refer to your notes. There is
no time limit, and if you do not reach the required standard straight away, you will be
advised which questions you did not answer correctly, and will be sent a REASSESSMENT
TEST, again to be completed at your leisure.
Australian Owner Builders Pty Ltd sends to you its Good Wishes for the success of your
Owner-Builder project. GO TO IT and enjoy the experience!
Please take a moment to view the brochures and products enclosed in this course.
These sponsoring companies are proud to assist owner builders in achieving their goals
by providing the best products and services to all clients.
AOB Course - 31
Building costs have been historically high for
some time now. As a result most owner
builders or renovators take on a project to
keep costs under control or simply to get
more value for the hard earned dollars being
spent.
The balancing act for most is how do I cut
costs without cutting corners? More
importantly, how do I ensure my project is
sufficiently covered should something
go wrong?
Why Do You Need Construction & Public
Liability Insurance?
Owner builders, by taking out the control
permit, can be deemed to be in control of
site safety and the co-ordinating of workers.
Uninvited guests or neighbors could sue you
for hundreds of thousands of dollars if an
injury or damage can be traced to your
negligence. It is vital that you take out Public
Liability Insurance to protect yourself and
your assets against potentially huge claims.
Public Liability covers third party
personal injury and property damage
that occurs during the period of the
policy for which the insured shall
become legally liable.
Where workers are employed rather than
subcontracted the owner builder should seek
workers compensation cover. Public Liability
Insurance for Owner Builders
A u s t r a l i a n O w n e r B u i l d e r s - T h e C l u b , 5 Pe n i n s u l a B l v d , S e a f o r d , V i c 3 1 9 8
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does not satisfy workers compensation
requirements.
Note: You are required to ensure that all
sub-contractors and specialist suppliers
provide you with their own public liability
insurance for damages or personal injuries
they cause due to their negligence.
What Does Construction
Insurance Cover?
Construction Insurance (also known as
Contract Works, Material Damage or
Construction Risk insurance) covers the
main risks encountered during the building
process. These include malicious damage
or vandalism, theft, fire damage, storm,
wind and water damage.
The BuildSafe policy includes, at no extra
charge, an amount to cover demolition,
removal of debris and professional fees
that may leave you underinsured in the
event of a major claim.
What About Extensions Or Renovations
On A home Already Covered By Home
& Contents Insurance?
It is vital that you check the specific policy
wording of your Home & Contents Policy,
as most insurers suspend the home
insurance and public liability cover for
renovation and extension work over a
certain value or complexity. This could
affect the cover to the existing house for
loss or damage as a direct result of the
renovations or extensions. Public liability
cover could also be affected. If you are
renovating or extending you should check
your current policy wording carefully.
BuildSafe is able to cover both the existing
home and the extensions or renovations
under its Construction Risk policy.
How Do You Calculate The Right
Amount Of Insurance?
This is known as the under-insuring trap.
Do not try to save money by insuring your
works for less than the actual replacement
cost of a licensed builder carrying out the
work. In the event of an indemnifiable
event under the policy, (an event that is
insured), and it is found that the sums
insured are less than 90 percent of the
amount required to be insured, the amount
recoverable by you under this policy will
be reduced by such proportions as the
sums insured bear to 90 percent of the
amount required to be insured.
E.g. Say a home is insured for $60,000
rather than its replacement cost of
$120,000 and there is a loss of $40,000.
The insurer will only be required to pay
$22,000 due to these provisions. This
would be calculated as 55 percent of the
loss due to the proportion of the $60,000
insured to $108,000 (90 percent of
replacement cost). In this case, the In the
event of a total loss, the owner builder
would have to pay $60,000 towards the
cost of rectification.
What about voluntary workers?
Voluntary workers ARE NOT covered by
the policy. As there is no contract between
you and the voluntary worker they are not
sub-contractors and as they are not being
paid, voluntary workers are not covered
nor be registered by Workcare. As we all
have family and friends prepared to lend a
hand, our advice would be to inform them
of exactly where they stand, to avoid
disputes or bad blood should they be
injured.
Is the building insured once completed
and still vacant?
Very few insurers, including your
BuildSafe policy, provide cover for
completed, unoccupied buildings waiting
to be sold or settled. Your BuildSafe
Construction Risk Policy can be endorsed
for up to 2 months cover on a vacant
building subject to a monitored alarm
system during construction. If you are
going to need this protection you should
consider building in the alarm system
during construction. The endorsement can
be arranged once the building is complete
and does not have to be nominated from
the start.
Is The Nature Strip Covered?
Yes. Your BuildSafe policy does cover
public liability for your nature strip.
Selling Your Owner Built Home
All owner builders & renovators need to be
aware that it is a requirement that when
selling their property, they may be liable to
provide the purchaser with Owner Builder
Warranty insurance.
The Home Building Act 1989 in New
South Wales requires all owner builders
who sell their property to obtain Owner
Builder Warranty Insurance. The
insurance is to cover the purchaser in the
event of faulty workmanship. The period of
warranty is for 6 years from the issuing of
the certificate of occupancy or certificate
of final completion. For example, if the
property is sold 2 years after certificates
were issued, warranty insurance would be
required for the remaining 4 years. You will
also be required to obtain a Defect
Inspection Report, these are valid for
6 months.
A property can be sold at the point where
Certificate of Final Completion has been
issue and Owner Builder Warranty
Insurance obtained. If you do not have the
Warranty insurance you CANNOT sell
the property
Owner Builder Warranty covers the
purchaser, or any subsequent purchaser,
of the property for the balance of the 6
year period after the Certificate of Final
Completion was issued.
Owner Builder Warranty is only required
where the cost of the works is over
$12,000. Below this amount it is not
legislative requirement, but you will still
need to provide a Defect Inspection
Report. Even if the original works did not
require a permit the $12,000 threshold
still applies.
If Owner Builder Warranty is not obtained
and your property is sold you risk fines
and penalties of $22,000. The prospective
purchaser has the right to pull out of the
sale agreement without any penalties. All
deposits held will be refunded, in full, and
you will have no recourse to sue.
In the event of a dispute both the vendor
and the purchaser can be dis-advantaged.
The vendor may have the sale fall through
and have a judgement issued against them
coupled with a fine. The purchaser may be
left with no recourse to rectify faults under
warranty and be forced to take expensive
legal action to recover the costs.
Obtaining Owner Builder Warranty
Insurance is a legal responsibility. As an
owner builder/renovator it pays to be
aware of all your liabilities, even if they are
some way down the track.
Buildsafe Building Insurances have a
range of insurance products. Please fell
free any of the consultants,to discuss any
questions you may have.
For a full list of Buildsafe services
please call 1800 091 007 or visit the
website at www.buildsafe.com.au
32 - AOB Course
Insurance For Owner Builders