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ABE Education
ABE [email protected]
ACT Owner-Builder Education Course
© ABE Education P/L
Revision V20
[email protected]
Tel: 02 9798 5000
ABE Education
OIBI COURSE DISCLAIMER
By agreeing to these our terms and conditions, the prospective owner-builder understands that
the person who registers for the OI BI course is the name in which the certificate will be issued.
This person must be the registered owner of the property.
Persons, not registering to complete the OI BI owner-builder course for the sole purpose
of becoming an owner-builder and gaining an owner-builder permit are not permitted to complete
this course.
The person who registers to complete the OIBI owner-builder education course will be the
person who is solely responsible for sitting the separate quiz examination component of this
course material.
Where there is any doubt about the identity of the individual sitting the exam, OI BI will not issue
a certificate of satisfactory completion of the course until satisfied as to the identity.
The certificate issued by ABE is non transferable to any other person or entity. Furthermore
the details of the person registering to complete the course will not be altered unless agreed
to by ABE.
Note: Your course purchase amount requires you to complete and submit the course quiz
within 90 days of purchase. If you do not complete the quiz within 90 days ABE reserve the right
to charge an additional administration fee of $40.
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Own-It Build-It Advisory Design Packs .................................................................................. 6 Introduction ............................................................................................................................ 7 Course Aim ............................................................................................................................ 8 Section 1 ......................................................................................................................................................... 10 OWNER-BUILDER DEFINITIONS & OBLIGATIONS ......................................................... 10 Flow Chart For Typical Residential Building ....................................................................... 11 How can I be Eligible for an Owner-Builder Licence and Where Do I Apply? .................... 12 Application forms ................................................................................................................. 12 Licensing ............................................................................................................................. 13 OIBI Course Question No 1................................................................................................. 15 OIBI Course Question No 2................................................................................................. 15 OIBI Course Question No 3................................................................................................. 15 OIBI Course Question No 4................................................................................................. 15 OIBI Course Question No 5................................................................................................. 15 OIBI Course Question No 6................................................................................................. 16 Section 2 ......................................................................................................................................................... 17 PROJECT DOCUMENTATION & DEVELOPMENT APPROVAL ...................................... 17 OIBI Advisory Note No 1 - Project Design .......................................................................... 17 Building Approval & Building Covenants ............................................................................. 18 OIBI Course Question No 7................................................................................................. 20 OIBI Course Question No 8................................................................................................. 20 OIBI Course Question No 9................................................................................................. 20 Section 3 ......................................................................................................................................................... 21 PROJECT BUDGET ............................................................................................................ 21 How Do I Calculate My Project Costs? ............................................................................... 21 OIBI Advisory Note No 2 - OIBI Project Budget Calculator ................................................. 23 OIBI Course Question No 10............................................................................................... 23 OIBI Course Question No 11............................................................................................... 23 OIBI Course Question No 12............................................................................................... 23 OIBI Course Question No 13............................................................................................... 23 Section 4 ......................................................................................................................................................... 24 PROJECT FINANCE ........................................................................................................... 24 OIBI Course Question No 14............................................................................................... 25 OIBI Course Question No 15............................................................................................... 25 Section 5 ......................................................................................................................................................... 26 PROJECT INSURANCE & TAXATION ............................................................................... 26 Workers Compensation Insurance ...................................................................................... 26 Other Optional Insurances .................................................................................................. 26 Owner-builder Insurers Contacts ........................................................................................ 28 OI BI Advisory Note No3 - Project Insurance ...................................................................... 28 OIBI Course Question No 16............................................................................................... 29 OIBI Course Question No 17............................................................................................... 29 OIBI Course Question No 18............................................................................................... 29 Section 6 ......................................................................................................................................................... 30 PROJECT SET UP, OCCUPATIONAL HEALTH & SAFETY (OH&S)................................ 30 Site Amenities ..................................................................................................................... 31 Noise ................................................................................................................................... 31 Water, soil and pollution ...................................................................................................... 31 Trees ................................................................................................................................... 31 Building work and lease boundaries ................................................................................... 31 Nature strips and footpaths ................................................................................................. 31 Rubbish ............................................................................................................................... 32 Lead in Buildings; ................................................................................................................ 32 Ceiling / Wall Dust ............................................................................................................... 32 Painted Surfaces; ................................................................................................................ 32 Asbestos in Buildings .......................................................................................................... 32 Hazard Identification, Risk Assessment and Control .......................................................... 34 Sources of Hazards ............................................................................................................. 34 Assess the Risk ................................................................................................................... 36 Risk Priority ......................................................................................................................... 36 Controlling the Risk ............................................................................................................. 36 ACT Owner Build Course
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HIERARCHY OF CONTROL............................................................................................... 38 Pre Work Hazard Assessment Check ................................................................................. 40 Definitions ............................................................................................................................ 41 Examples of Nominated Control Methods ........................................................................... 42 OIBI Course Question No 19............................................................................................... 44 OIBI Course Question No 20............................................................................................... 44 OIBI Course Question No 21............................................................................................... 44 OIBI Course Question No 22............................................................................................... 44 Section 7 ......................................................................................................................................................... 45 PROJECT CONTRACTS, WARRANTIES & CLAIMS ........................................................ 45 OIBI Advisory Note No 5 - Project Progress Payments & Variations.................................. 46 What are the different ways of contracting with a contractor? ............................................ 47 OIBI Course Question No 23............................................................................................... 47 OIBI Course Question No 24............................................................................................... 47 OIBI Course Question No 25............................................................................................... 47 Section 8 ......................................................................................................................................................... 48 PROJECT CONTRACTORS & CONSULTANTS ............................................................... 48 Contract ............................................................................................................................... 48 Time to complete ................................................................................................................. 48 Variations............................................................................................................................. 48 Communication ................................................................................................................... 48 Bookwork ............................................................................................................................. 49 Work Quality ........................................................................................................................ 49 Defects rectification ............................................................................................................. 49 Building Professionals (Consultants) .................................................................................. 49 Building Certifier .................................................................................................................. 49 Mandatory Site Inspections ................................................................................................. 49 Construction Manager ......................................................................................................... 50 Architect............................................................................................................................... 50 Building Consultant ............................................................................................................. 50 Structural engineer .............................................................................................................. 50 Geotechnical engineer ........................................................................................................ 50 Land Surveyor ..................................................................................................................... 50 OIBI Course Question No 26............................................................................................... 51 OIBI Course Question No 27............................................................................................... 51 OIBI Course Question No 28............................................................................................... 51 OIBI Course Question No 29............................................................................................... 51 Section 9 ......................................................................................................................................................... 52 PROJECT RECORDS......................................................................................................... 52 Project Records why should I keep them? .......................................................................... 52 Mandatory PCA Site Inspections ........................................................................................ 53 Occupation Certificate ......................................................................................................... 53 Certificates Of Compliance.................................................................................................. 53 OIBI Course Question No 30............................................................................................... 54 OIBI Course Question No 31............................................................................................... 54 OIBI Course Question No 32............................................................................................... 54 Section 10 ....................................................................................................................................................... 55 TERMITES (WHITE ANTS) & PROJECT PLANNING ........................................................ 55 Project Planning & Scheduling ............................................................................................ 56 Types of Trades & Scope of Work Considerations ............................................................. 56 Demolisher/ excavator......................................................................................................... 56 Concreter ............................................................................................................................. 56 Plumber ............................................................................................................................... 57 Electrician ............................................................................................................................ 57 Waterproofing contractor .................................................................................................... 58 Bricklayer ............................................................................................................................. 58 Carpenter............................................................................................................................. 58 Tiler...................................................................................................................................... 59 Plasterer .............................................................................................................................. 59 Wet Plasterers ..................................................................................................................... 59 Dry Plasterers ...................................................................................................................... 59 Painter ................................................................................................................................. 60 OIBI Advisory Note No 6 - Electrical ................................................................................... 60 ACT Owner Build Course
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OIBI Course Question No 33............................................................................................... 61 OIBI Course Question No 34............................................................................................... 61 Section 11 ....................................................................................................................................................... 62 BUILDING CODE & AUSTRALIAN STANDARDS.............................................................. 62 Building Code Of Australia (BCA) ....................................................................................... 62 OIBI Course Question No 35............................................................................................... 63 OIBI Course Question No 36............................................................................................... 63 OIBI Course Question No 37............................................................................................... 63 Section 12 ....................................................................................................................................................... 64 BUILDING DISPUTES ........................................................................................................ 64 How do you avoid disputes when building or renovating .................................................... 64 Summary Tips on Avoiding Building Disputes .................................................................... 66 OI BI Advisory Note No 4 - Neighbours & Dividing Fences ................................................ 66 OIBI Course Question No 38............................................................................................... 67 OIBI Course Question No 39............................................................................................... 67 OIBI Course Question No 40............................................................................................... 67 Hyperlink References .................................................................................................................................... 68 End of OIBI education course text and questions. .............................................................. 68 Need More Answers??? ...................................................................................................... 68 ACT Owner Build Course
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Own-It Build-It Advisory Design Packs*
The course author is also a project manager and expert building consultant having considerable
experience with owner-builder projects and has developed valuable and detailed Advisory
Design Pack, as *optional extras to the OIBI course, on many
important project areas, some of which are summarized at the end of each course section.
N.B*
The optional Advisory Design Pack can be purchased separately.
The details of exactly what this pack includes can be viewed here. If you have not purchased these
packs as part of your initial order they can then only be purchased by calling us and completing an
over the phone credit card payment.
If you have not purchased the Advisory Packs simply ignore the references to same
in the course.
The following are some of the questions the ABE Education Advisory Design Note covers:
Section 1:
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How Do I Find Someone To Design My Project?
How Much Will My Design Cost?
How Do I Brief My Building Designer?
How Can I Visualize What My Design Will Look Like?
How Do I Engage (contract) My Building Designer?
What Other Documents Might You Need To Provide Your Designer?
What Are the Different Avenues Of Appeal Should Your DA Be Refused?
What’s Needed If I want to Change Something after My Plans Have Been Approved?
Section 2:
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Project Progress Claims, Variations & Contract Terms
Progress Payments
Variations – what are they and how do they work?
What is practical completion and why is the final progress payment important?
Section 6:
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Neighbours
What can I Do If My Neighbour Refuses Access onto Their Land?
What the law says on Dividing Fences and who pays for the fence?
What is the Law regarding Trees?
Section 5:
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Project Insurance
What Happens With Your Building Replacement Insurance Policy When Renovating?
How Do I Calculate The Cost Of my Home Replacement Value?
How Do I find An Owner-builder Insurer for HWI?
What Information do Insurers require?
Section 4:
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Project Budget Calculator
Excel version to work out budgets throughout the project
Section 3:
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Project Design & Approval
Electrical
Where can I get answers to specific electrical questions on the electrical standard AS3000?
Where can I go to get an electrical layout diagram?
Important Tips on electrical installations and saving money.
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Introduction
Note:
The OIBI course quiz needs to be completed within 90 days of purchase.
Each year many thousands of people apply to become owner-builders, some to build a new
dream home but mostly for renovations, rather than by the more traditional method of engaging
a licensed builder.
In 2002 a major home renovation was completed every 90 seconds whilst a major kitchen/
bathroom renovation every 30 seconds, totalling some $22 billion spent in Australia by home
renovators.
This demand can be put down to the increased asset value of houses, the high cost of changing
houses in stamp duty, agent’s commission, legal fees, hugely increased building costs and the
popularity of TV home makeover programs.
The shortage of builders sometimes caused by their difficulty in obtaining home warranty insurance
is further fuelling demand as consumers find it increasingly difficult to find a good builder.
People rarely tire of telling their renovation tales – good and bad. It’s on par with child birth
in that regard.
Many owner-builders go into a project naively and do not comprehend the large task and
responsibility they are taking on.
Given the complexities and liabilities of building, contracts, taxation and insurances is it no wonder
that you are required to complete an approved education course before you will be issued with
a permit to build, as it can be onerous undertaking.
Owner-builders need basic management skills and some technical understanding. The following are
some of the responsibilities and/ or issues you may face:
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Knowing how to read and interpret detailed one dimensional architectural plans,
which are scaled.
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Ensuring that plans and specifications fit your requirements and your budget before
you submit to council.
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Obtaining an up-to-date survey defining the site boundaries either during or after
completing works
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Calculating the cost of labour and materials for the total project before commencing
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Researching and sourcing contractors/ materials and interpreting quotations,
well in advance of being required on-site.
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Being familiar with workers’ compensation and other building related insurances
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Providing a safe working environment on your property in accordance with Occupational
Health & Safety and Work Cover requirements.
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Preparing individual contracts covering the various subcontract works (above $1000 value)
for each trade before they commence.
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Ensuring that for individual contracts exceeding $12,000 (for work which requires a licence)
your contractors provide (before commencement) home warranty insurance certificates
which you need to keep and provide to your purchaser if selling within 6 years.
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Supervising and co-ordinating the construction, dealing with any disputes and determining
what is defective building work, which often involves trawling through various codes,
specifications and council documents or seeking expert advice.
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Dealing with progress claims and understanding the value of sub-contractors’ work
as it is completed.
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Understanding and meeting your obligations with regard to GST and ABN tax requirements.
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Dealing with the council, private certifiers, engineers, consultants and obtaining ‘as-built’
certification for various trades (e.g. certificates of compliance for plumbing, waterproofing
and termite treatments installations).
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Obtaining an Occupation Certificate from Council for completed works and if you sell the
property within 6 years of completion, obtaining home warranty insurance and attaching
to the contract of sale.
Work Cover representatives can undertake site audits to check on compliance with safety
requirements and OFT representatives may target areas to check compliance for appropriate
licences, permits contracts and insurance. On the spot fines can occur.
Being an owner-builder requires a considerable sacrifice of your time and a high degree of planning
but turning your building/ renovating dream into reality can be a truly satisfying and rewarding
experience, or soul destroying, so it is worthwhile getting passionate and committed about
the process.
Course Aim
This Own-It Build-It education course aims to steer you down the road to being a more successful
owner-builder. The course has been laid out step by step in the way most owner-builders would
normally face them on a project, from beginning to end. Active hyper links to all the important
websites are provided so that the information you get is the latest legislation/ advice, by simply
clicking on the relevant web address within the text. Should you find that any links do not work
we would appreciate you advising us of same.
Our goal is to provide graduates with sufficient legal and supervisory knowledge to construct,
add or alter their residence.
The Own-It Build-It course creator is an author of the consumer advisory book ‘Your Home’
and expert building consultant with over 20 years experience including assisting owner-builders
and consumers.
Visit Access Property Services
How do I get my OIBI Course Certificate?
You must read the course Sections 1-12 and answer all of the 40
multiple choice questions located at the end of each course section
on our automated on-line course quiz located on home page
www.ownitbuildit.com.au (just above the award).
You must first enter your Log-in name and password and complete your
personal details and simply click on the answer box you think is correct.
On completion press ‘submit’ and the on-line quiz will automatically
be sent to us for review. If you do not answer a question it will be marked as incorrect.
Alternately you can complete the quiz by hand and fax it back to us or by mail.
If all personal details and course questions are answered and you have achieved at least 85%
correct, you will be advised that you have successfully passed, by email and an official OIBI course
completion certificate will sent to you by surface mail, the original of which MUST be presented
to your local OFT office for your owner-builder permit to be issued. Unsuccessful participants will
be told which answers were incorrectly answered and given a second opportunity to pass. If you fail
a second time you will need to purchase the course again and sit another quiz.
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Will owner-building save you money and what are the pros and cons?
Profit margins for licensed builders typically range from 8 - 20% so there is the potential for
substantial savings. However, builders have access to trade discounts from 2.5 - 15% and also
to readily available and willing subcontractors and usually achieve a much faster completion
time than can owner-builders.
Owner-builder jobs take considerably longer to complete their projects and if you move out during
renovations (highly recommended for substantial works) the extra cost of rental accommodation
can be quite large and should be factored into your budget.
Substantial savings can be made if you undertake the labouring and non-specialist work yourself,
such as carpentry, metal roofing, plastering, concreting and tiling.
You may be able to negotiate discounts on materials, fittings and appliances with suppliers
particularly with cash, but this will take time and effort.
One of the most effective means of saving money is to obtain multiple quotations for each trade
well in advance of it being required on your project. You must check and compare the quotations
in respect to materials, scope and availability - and always negotiate.
As an owner-builder you can control the quality of the finished works, provided you have
an understanding of good building practice, and you have more control of the cost savings
for works that you decide you cannot afford. You can also delay non essential works such
as landscaping or expensive light fittings.
The rewards at the end of all the hard work far outweigh the pain partly because of the added
value (capital gain) to your own home as it can be one of the best forms of tax free investments.
Great joy can be achieved through an improved life style whether it is a more liveable living room,
a dream kitchen or creating a well landscaped garden.
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Section 1
OWNER-BUILDER DEFINITIONS & OBLIGATIONS
This section covers the definition of what is an owner-builder, what is owner-builder work, applying
for a permit and the statutory obligations of owner-builders.
What Is An Owner-Builder?
An owner-builder is a person who undertakes/completes residential work involved in the
construction, alteration, renovation, decoration or protection treatment of a dwelling and prescribed
structures such as, garages, carports, fences and retaining walls rather than employing a licensed
builder.
Before Applying for Owner-Builder Licence?
Before you apply, you should determine whether you need development approval or if your project
has exemptions from Development and/or Building Approval. ACT Planning and Land Authority
have a publication available on their website that explains about exemptions. It is titled “Exemptions
from Development and/or Building Approval” and is listed under the “E” category in the publications
section on the website.
You should understand your owner builder’s responsibilities, which include firstly obtaining Building
Approval for the work before an owner-builder licence can be issued.
Once you have an owner builder licence, you need to make an application to your building certifier
for a commencement notice. Once the commencement notice is issued you can start building.
What Can An Owner-Builder Build and What They Cannot?
Owner-builders can build or renovate their own residence or build ancillary structures around the
residence, such as decks, pergolas or carports provided the building work is on the owner’s main
home or ancillary to it. Owner builders may not be able to carry out specialist building work such as
install a swimming pool, demolish a building or handle asbestos, (other than bonded asbestos)
unless they can demonstrate sufficient knowledge and experience in performing this type of work.
An owner builder cannot perform work on a commercial building.
Contact: For all owner-builder licence queries contact ACT Planning & Land Authority
Ph 02 62076321
The following owner builder flowchart summarises the process for obtaining Development Approval,
Building Approval and an owner builder licence.
The flowchart for owner-builders summarizes the steps you will take while building and include:
Depending on the complexity of the work applicants may be required to successfully complete an
owner builder course recognised by the ACT Construction Occupations Registrar.
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Obtaining a commencement notice from a certifier before work starts;
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Booking inspections with the certifier at the appropriate stages; and
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Complying with directions given by a certifier after an unsuccessful inspection.
You should understand the certifiers’ responsibilities when you are an owner-builder.
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Flow Chart For Typical Residential Building
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How can I be Eligible for an Owner-Builder Licence and Where Do I Apply?
Only an individual can apply for an owner builder licence. You must own the land to be developed.
Where there is more than one owner, all owners must consent to the application. It is recommended
that the owner with the most appropriate skills to carry out the proposed work should nominate as
the primary applicant.
There is also a restriction on the number of owner builder licenses that can be issued. To be
eligible for an owner builder licence, you must not have been granted an owner builder licence in
relation to other land in the previous five years.
The main aim of limiting licenses is to stop un-licensed builders from running a building business.
You must live in the premises you build or one dwelling of the dual occupancy as your principal
place of residence.
There is no restriction on the number of owner builder licenses for work on the same site/ property.
Mandatory qualifications apply, including the need to demonstrate sufficient experience to do the
building work and/or satisfactory completion of an approved owner builder education course.
The experience and qualifications required are relative to the complexities of the building work and
will be determined by the ACT Planning & Land Authority
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To build add to or alter your residence, you will generally need to demonstrate your
qualifications by satisfactory completion of approved education course however you may
not need to complete such a course if you can demonstrate you have adequate
qualifications, such as the builder’s licence formal building qualifications or other relevant
qualifications
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for less complex work such as decks, pergolas or carports completion of an approved
education course may not be required if you can demonstrate sufficient experience
Owner builder licence application forms can be obtained from ACT Planning & Land Authority
website or from their offices.
Application forms
are;
CL5- application for owner builder licence for BCA class 1 and 2 buildings. This is the most
common.
CL6- application for owner builder licence for BCA class 10 building\structures
ACT Planning & Land Authority Locations
Dickson Office Ground Floor South Dame Pattie Menzies House
16 Challis Street Dickson ACT 2602 Telephone: (02) 6207 1923
Mitchell Office Mitchell Business Centre,
Cnr Lysaght and Hoskins Street Mitchell ACT 2911 Telephone: (02) 6207 6262
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What are the Responsibilities and Obligations of an Owner Builder?
Owner-builders have several professional responsibilities for construction and overseeing building
work including;
Licensing
You must obtain an owner-builder license to carry out owner-builder work. A license application fee
is payable when you make an application to the ACT Planning and Land Authority. As at 2007 the
fee is $174.00 and is reviewed each financial year. Before you can be issued a license, you must
have appointed a licensed building surveyor as your certifier and your certifier must have issued the
building approval.
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Standards and legislation
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The standards and legislation that apply to owner-builders’ work are:
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Building Act 2004
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Building Regulations 2004
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Environment ACT requirements about noise and water pollution
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Construction Occupations (Licensing) Act 2004
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Construction Occupations (Licensing) Regulations 2004
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ACT WorkCover construction rules
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Building Code of Australia, all sections (Volume 2 Housing Provisions); and
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Any relevant Australian Standards where the work relates to it, such as AS 2870 Residential
slabs and footings-Construction-1996 and AS 3740 waterproofing of wet areas within
residential buildings-2004.
As an owner-builder you take on the same responsibilities as a licensed builder to:
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Supervise building work
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Ensure the building work complies with the Building Act 2004
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Ensure the work is done in a proper and skilful way; and
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Ensure the work is done in accordance with approved plans.
N.B* As an owner builder you are responsible for up to 10 years for any building work you do.
Within that time you may be issued with a rectification order to fix non-compliant work, even if the
property has been sold.
Regulation
You may be subject to disciplinary actions for legislation breaches.
Discipline may be cancellation of the owner-builder license, suspension or a fine. As well, demerit
points can be allocated to an owner-builder.
You can be prosecuted for offences under the Building Act 2004 and the Construction Occupations
(Licensing) Act 2004
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What Are The Limitations Of An Owner-Builder License?
Owner-builder licences do not allow the holder to undertake any ‘specialist works’ that require a
licensed contractor such as electrical, plumbing, drainage, gas fitting, built-in air conditioning for
which written certification maybe required at the end of the job in order to obtain an Occupation
Certificate from ACT Planning & Land Authority.
The licence cannot be used to build multi-unit dwellings (apartments, villa homes, townhouses, or
units) but can be used to build or renovate a single dwelling or one dwelling of a dual-occupancy.
The ATO require the property to be your principal place of residence for a minimum of 3 months
otherwise Capital Gains Tax (CGT) may apply.
For more information on CGT tax
What Works Can I Do Using An Owner-Builder Licence?
You can do owner-builder work, which is non ‘specialist’ building work such as bricklaying,
carpentry, metal roofing, gyprock, concreting, tiling but all these works must comply with the
Building Code Of Australia (BCA) and the various referenced Australian Standards of which there
are over 150 versions
(for more info email)
Owner-builders carry many of the legal and professional responsibilities as a licensed builder would,
so you need to ensure compliance with the BCA and the referenced Australian building standards,
which are discussed later in Section 11. Compliance with Development Approval or Building
Approval
The Australian Building Codes Board is responsible for administering the BCA and can be contacted
on Ph 1300 134 631.
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OIBI Course Question No 1
How many owner-builder licences can you be issued with on the same
site/property?
(a) One
(b) One in every 5 years
(c) No limit
(d) Less than 3
OIBI Course Question No 2
What piece of ACT legislation must you ensure your building work complies
with?
(a) The Construction Occupations (Licensing) Act 2004
(b) The Building Act 2004
(c) The Environment Act
(d) Building Code of Australia
OIBI Course Question No 3
In which property must you reside in order to obtain an owner-builder
licence?
(a) A mates place
(b) In the premises you build\renovate or one dwelling of the dual
occupancy; as your principal place of residence
(c) A motel
(d) In a tent on adjoining block of land
OIBI Course Question No 4
What approval must you obtain to be eligible for an owner-builder licence?
(a) Development Approval
(b) Building Approval
(c) Completion of an approved education course
(d) Building Code of Australia approval
OIBI Course Question No 5
What liabilities do owner-builders carry for their completed project works?
(a) Very little as it is covered by ACT Planning & Land Authority
(b) Each of the contractors carry the liability for their respective work
(c) Carrying many of the legal and professional responsibilities as a
licensed builder including being responsible for any completed
building work for up to 10 years
(d) Limited liability up to when they sell the property
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OIBI Course Question No 6
What works are owner-builders permitted to complete themselves?
(a) Any works they choose as there is no limit
(b) Non ‘specialist’ building work such as bricklaying, carpentry, metal
roofing, gyprock, concreting, tiling but all these works must comply
with the Building Code Of Australia (BCA) and the Australian
Standards
(c) Plumbing and electrical works
(d) All of the above
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Section 2
PROJECT DOCUMENTATION & DEVELOPMENT APPROVAL
This section covers project documentation, applying for and obtaining development approval and
building approval.
Why Is Proper Project Documentation Important?
Having proper project documentation (typically architect/ building designer and engineers plans and
specifications) that accurately reflect not only the full scope of the proposed works but also the
quality and the types of materials required, is one of the best means by which you can ensure a
quality outcome within a defined budget. Even a seemingly simple renovation can be more
complicated than you think.
For example, simply showing a window on a plan does not indicate the frame material and glass
type, the quality (cost) of which can very enormously.
Similarly, just showing a bedroom door does not denote whether it is a solid or hollow type or the
type of lock.
If a contractor gets poorly described and inadequate documents, they usually quote on the lowest
commercially-acceptable quality item.
Poor or inadequate project documentation almost always results in ‘variations’ in both cost and time.
However contractors quoting from detailed professional drawings (and specifications) usually are
much more accurate than those interpreted from non professional drawings, which can be under
estimated by as much as 60%.
When deciding to build new or renovate, engaging a design professional to assist you usually
results in the best flexibility and achieves the important goal of comprehensive documentation.
Spending money on this up front can limit your exposure and provide greater surety to the project.
Architects are building design specialists trained to make designs efficient (maximizing space) and
aesthetically pleasing and should ensure that the design conforms to the Building Code of Australia
(BCA) and local Council guidelines.
Architects usually have strong views about their profession and their role in the project and
sometimes can have ingenious solutions to overcome your problems.
Building designers or draft persons are often cheaper than architects and can be more practical.
They are responsible for the majority of all Development Application (DA) submissions.
Once you have all the ideas together make a list, try drafting some rough sketches and use these to
provide the basis of a design ‘brief’ to your designer.
When giving your brief it is essential that you know your maximum project budget and communicate
this to your designer in writing.
OIBI Advisory Note No 1 - Project Design
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How Do I Find Someone To Design My Project?
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How do I brief my building designer?
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How do I engage (contract) my building designer?
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What other documents might you need to provide your designer?
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Building Approval & Building Covenants
Building approval is required for most developments to ensure it complies with building laws,
including the Building Code of Australia. Building approval is usually obtained after the ACT
Planning & land Authority have given development approval. However, there are some exemptions
to development approval and/or building approval. Building approval must be sought before
construction begins.
How Do I get Building Approval?
To get building approval:
•
Appoint a licensed building surveyor as your certifier
•
Apply for building approval and pay the relevant fees (your certifier will inform you); and
•
Become a licensed owner-builder (however eligibility restrictions apply) or employ a
licensed builder.
The forms to complete are in the building approval information pack. You need to give the certifier
properly prepared plans that show the work that will be done.
The fees paid to the ACT Government for work requiring building approval are:
•
A building levy, required for all plans that your certifier certifies;
•
A training levy, required if the work has a value greater than $10,000; and
•
A Workcover workplace safety fee, required for all commercial construction and sometimes
for residential construction.
Your certifier will calculate these using the Building Cost Guide and the Fees and charges booklet.
You can pay these fees at the Customer Service Centres in Dickson or Mitchell, by calling Canberra
Connect on 13 33 81 or online via Canberra Connect.
Before work begins, you as the licensed owner-builder need to apply to your certifier for a
commencement notice and you or your appointed agent need to sign this application. The work can
start once your certifier has issued the commencement notice, provided work has not been
prohibited by law.
Most builders will subcontract electricians, plumbers, carpenters, bricklayers and other trades during
construction. The builder is required to ensure that any persons engaged are appropriately skilled
and, if required, are licensed.
Getting Plumbing Approval
During construction, you may have plumbing work completed plumbing work.
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Conditions of Building
You and the professionals you employ need to be mindful of:
•
any conditions that were set in the notice of decision sent to you advising of your
development approval;
•
any lease conditions; and
•
the requirements of the building approval (if any).
These conditions govern everything you can build or do on your land. An example condition is that
for certain residential leases in new suburbs, construction must start within 12 months of the
commencement date of the lease and must be completed within 24 months.
During Construction
A number of notifications and inspections may need to be made during construction. This helps to
ensure the work is carried out to the required standards before you can apply to ACT Planning &
Land Authority for issuance of an occupation certificate that allows you to have legal occupancy or
use of the building .
It is the owner-builders responsibility to read and understand all of the Development Approval &
Building Approval consent requirements BEFORE you commence as non-compliance may mean
that you will not get a completion or occupation certificate when the owner-builder project is
finished.
Don’t build something without consent as you can be made to demolish unauthorized alterations at
your own expense. Get to know fellow renovators in your area as they can be a valuable pool of
information.
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OIBI Course Question No 7
How do you obtain Building Approval?
(a) Nothing in particular as it is automatically provided by ACT Planning
& Land Authority
(b) Submit a few hand written notes and sketches
(c) Engage a licensed building surveyor and provide them with
documents such as architectural and engineers plans, specifications
and pay associated fees
(d) Ensure the works comply with Building Code of Australia
OIBI Course Question No 8
Owner builders work responsibilities include
(a) Supervise building work and ensure the building work complies with
the Building Act 2004
(b) Ensure the work is done in a proper and skilful way
(c) Ensure the work is done in accordance with approved plans
(d) All the above
OIBI Course Question No 9
What is an example ‘building condition’?
(a) Nothing in particular as you can do what you wish
(b) Certain residential leases in new suburbs, construction must start
within 12 months of the commencement date of the lease and must
be completed within 24 months
(c) Provided work has not been prohibited by law
(d) Compliance with Building Code of Australia
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Section 3
PROJECT BUDGET
Correctly estimating the costs of your building project before you commence is critical and
is probably best done when your plans are approved by Council. That way the full extent
of approved works will be known.
Never assume that your building designer has designed your project to come in below your stated
budget, as significant cost overruns are very common.
One of the most common problems for owner-builders is that they underestimate the total project
cost, which can result in inadequate finances to finish the project.
Most lending authorities require a detailed budget supported by individual quotations and presented
in a formal neat manner inclusive of all anticipated costs.
Quotes and estimates Ask for written quotes before you employ a professional from the private
sector. If you change your mind on what you want, write a list of the changes or have the plans redrawn and ask them to re-quote. Some professionals charge for quotes to be given.
Be aware that quotes and estimates are different:
•
An estimate is a reasonable guess of the costs involved without knowledge of the exact
extent of the work to be done or the exact costs of materials. An estimate, even if written,
will not bind the professional, and you can end up paying more or paying for work you didn’t
specifically authorize.
•
A quote is a legally enforceable document detailing all the work to be done, parts or
materials to be used, and should have a time limit for which the quote is valid. The quote
should always state for how long it is fixed. “Cost plus” quotes are based on an hourly rate
plus costs. These types of quotes do not guarantee a set price.
Prime cost items: Prime cost items are items that you have not specifically selected at the time of
the contract but the builder or trades person has made an allowance for in the total price. This
allowance will be for a standard or average item and if you choose a more expensive item, you will
have to pay the difference in price. Prime cost items can include stoves, heating, tiles, carpets, taps,
bathroom fittings and light fittings. Prime cost items should either be specified in the contract or
listed in an attachment to it.
How Do I Calculate My Project Costs?
Option A;
A relatively easy way to determine your project costs is to get a builder to quote.
However, in a heated market builder’s margins tend to be high and therefore
the quoted cost could be significantly more than the true cost, if undertaken
by an owner-builder.
Also builders do not allow for the costs of architects, engineers and consultants, which can
be significant.
Tip:
Builders can be helpful in providing valuable advice on cheaper alternatives
so listen to any expert suggestions and be prepared to scale back the design
by selecting cheaper alternatives along the way.
Option B;
Determine costs by having a quantity surveyor (Q.S) review all the project
documents and provide an ‘indicative budget estimate’ which is broken down into
each individual trade or supply item but usually does not include consultants fees
(e.g. architects fees) and which can be very significant.
Often these estimates are based on standard fittings and finishes and it is unusual for a Q.S
to visit site when preparing the estimate and renovation projects are much more difficult to
accurately price, than say a new home.
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Typical costs for a Q.S estimate range from $500 upwards depending on size and complexity
of the project.
You can find a national directory of available quantity surveyors on the Australian Institute
of Quantity Surveyors website
Option C;
Develop your own project budget using something like the Own It build It Project
Budget Calculator, which is built on a M.S Excel (or Lotus 123) spreadsheet and
looks like Figure 1.
Own It Build It authors have had many years experience managing construction works and
contractors and custom developed the Own It build It Project Budget Calculator for owner- builders.
This project calculator is also ideally suited for use with a Q.S estimate breakdown.
You simply insert project activities or supply items and the associated quotation costs.
The calculations are all done for you inclusive of an automatic 10% contingency (the minimum that
should be built into all cost estimates).
The calculator also has provision for the contract sum, ‘variations’, percentage of works completed
and a calculator for what you have paid to date, so you can keep track of contractor progress
claims.
Option D;
If you are building a new home there is a simple yet sophisticated electronic web
based new building cost calculator software programme, developed by private web
national building cost firm Cordell, which enables users to quickly determine costs.
Once floor areas and finishes information has been entered, you can immediately
see the difference in the overall budget through the choice of finish.
Visit: Website and go to online services ‘Cordell Valuer’
When preparing a project budget you need to carefully go through the drawings and specifications
and break out all of the individual trades (e.g. concreter and plumber) and or supply items (e.g. tiles,
taps, toilets, bricks and door hardware).
Next you will need to spend considerable time photocopying spare plans and specifications for each
related trade (activity) and ringing contractors and inviting them to quote.
It is usually best to get all contractors to visit site and discuss any issues with you and then provide
a written quotation, which must include GST.
This process can take many weeks by the time you have obtained all written quotes, so plan well
ahead and try not to get the same trade based contractors to visit at the same time.
Go to supply shops for taps, toilets, appliances and door hardware, make your selections and
get written quotations for supply.
You must also make allowance for less obvious costs such as alternate rental accommodation,
Council and consultant fees, rubbish removal (usually skips), temporary toilet facilities (if none
provided) and tool hire.
You then need to include reasonable estimates for project insurance/s (obtained from an insurer –
refer Section 5).
If using the OIBI Project Budget Calculator; you need to collate all these separate trade /supply
items under the Activities heading basically as they would be required on the job.
For example put demolisher and excavation first and painting and floor finishes near the end.
As you obtain your quotations (which you should file under trade activities) commence inserting
the $ amounts within the corresponding budget column of the Project Budget Calculator.
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OIBI Advisory Note No 2 - OIBI Project Budget Calculator
Own It Build It Project Budget Calculator.
N.B*
this project calculator only runs on M.S Excel or Lotus 123 so if you
do not have either of these programmes installed on your computer
you cannot use it.
OIBI Course Question No 10
What is one of the most common problems facing an owner-builder?
(a) Under estimating the total project cost resulting in inadequate
finances to finish the project
(b) Over estimating the total project costs
(c) Never having enough time to complete a project budget
(d) Answers (b) & (c)
OIBI Course Question No 11
What do most lending authorities require from owner-builders prior
to approving a loan?
(a) Nothing as they only lend against the equity in your home
(b) A detailed budget supported by individual quotations, inclusive
of all anticipated costs and Home Warranty insurance.
(c) Home and contents insurance.
(d) A copy of your owner-builder permit
OIBI Course Question No 12
What are some of the less obvious project costs you should budget for?
(a) Bathroom fittings and tiles
(b) Alternate rental accommodation, Council and consultants fees,
rubbish removal, temporary toilet and tool hire.
(c) Coffee and biscuits for contractors
(d) Building disputes costs
OIBI Course Question No 13
What is a prime cost item?
(a) A standard or average item allowance by the contractor for an item you
have not yet selected, called a PC Item
(b) The total project cost
(c) A quantity surveyors estimate
(d) A P.C item
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Section 4
PROJECT FINANCE
If your project requires borrowed finance then you must make an application for a loan and ensure
that adequate funds are in place BEFORE you commence.
A 2003 survey of home owners (by Wizard Home loans) found that 40% of renovators did not even
have a budget and of those that did, 30% went over budget with 4 in 10 of those going 25% over,
mostly on finishes.
Banks are currently keen to loan on the equity you already have in your property however
the majority of lending authorities are either reluctant or quite nervous about lending to ownerbuilders mainly because they are concerned about the perceived lack of expertise (when
construction is undertaken by an owner-builder), cost over runs and the possible risk of an aborted
half-finished project, which could be very difficult to sell if the loan was ever called up.
Having determined your project budget your next priority is to work out if you can afford it.
The easiest way to calculate the size of the loan likely to be approved is to go to one of the major
banks’ websites all of which have a calculator for this very purpose.
For example go to Wizard or ANZ for loan calculators and fill in the details of your income, living
expenses, debts, desired loan term, etc and you will be given an indication of how much the bank
will lend.
Check for other calculators which work out statutory fees and bank charges on the loan.
When deciding how much to borrow, also give some thought to whether interest rates are likely
to rise, thus increasing your repayments and also the money you will need to spend on furnishings,
driveway, fences and landscaping.
If you intend taking time off work to manage your project you need to consider the loss of income
and your ability to adequately re-pay the loan amount.
When applying for finance it is important that you prepare a detailed budget (inclusive of at least
a 10% contingency) supported by as many contractor, supplier and consultant quotes as possible,
attached to the rear.
You should present your loan application in a professional and properly planned manner and give
the lending authority sufficient information to make them confident that you know what you
are doing.
Preferably you should also provide a copy of your owner-builder training course certificate and/
or permit as further evidence of your relative expertise, together with plans and a copy of your
building insurance policy.
The Own-It Build-It custom designed MS Excel Project Budget Calculator looks very professional
and can be easily updated, which is what the banks like.
The majority of lenders require that you have your property valued by one of their panel valuers
(usually paid by them) and will only lend up to a maximum percentage of the property’s value
(e.g. 70% of land value), which is called the loan to value ratio (or LVR).
If the LVR goes over 80% most lenders will insist on lenders mortgage insurance which you pay
for and it is very expensive.
Another common loan condition is that the funds will only be released in stages (often 5-6 stages
which require substantiation) rather than been granted as an upfront lump sum loan.
This can make paying contractors and suppliers on time or for COD, (often required), very difficult,
so you should try and seek out a loan that allows an advance draw down capacity.
Some lenders require that you initially inject your own funds to get the project rolling and then
will only release funds on the basis of what has already been paid for (based on invoices) for the
duration of the project.
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This method is not ideal as you are loaned monies on the basis of what you have spent rather than
what you may need and in most projects the cash flow requirements tends to follow the Napoleons
cap trend, with greatest funds required in the middle.
Some lenders will also put a time limit on how quickly you must complete the project in order
for finance to be approved (for example 6-8 months).
OIBI Course Question No 14
When the loan to value ratio (LVR) exceeds 80% what type of insurance
do most lending authorities require be put in place?
(a) Construction liability insurance.
(b) Mortgage insurance.
(c) Home and contents.
(d) Professional indemnity
OIBI Course Question No 15
When mortgage insurance is required who pays for it?
(a) The lending authority
(b) The insurer.
(c) The person being loaned the money.
(d) Answers (a) & (b)
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Section 5
PROJECT INSURANCE & TAXATION
This section deals with owner-builder insurances and tax obligations. You do not need warranty
insurance. However, as a supervisor of building work, an owner-builder needs to be aware of
insurance requirements, in particular, workers’ compensation for any workers that are involved in
the project.
Owner-builders should check with their insurance provider for advice on insurance needs,
including public liability and increasing the house insurance to cover any additions.
Workers Compensation Insurance
ACT Work Cover deems owner-builders to be employers for the purposes of their laws where a
contractor is an individual. Under certain circumstances contractors engaged by the owner-builder
may be regarded, at law, to be employees for the purposes of workers’ compensation.
All owner-builders who engage contractors or workers should obtain a standard workers
compensation policy to ensure that they are fully covered.
Some owner-builders may find that their premium rate is higher than this if they employ workers
or engage contractors who may be “deemed workers”. Deemed workers are individuals who do
not employ other workers; who do not sub-let all or part of their work; and whose work is not part
of a business or trade regularly carried out by that person in his/her own name or under a
business or firm name.
Licensed trades people such as plumbers and electricians are not normally considered to be
deemed workers of the owner-builder and are usually required to carry their own workers
compensation insurance (if applicable). However an individual who agrees to do some labouring
for the owner-builder is an example of the type of person likely to be a deemed worker. The
owner-builder’s workers compensation policy would cover this person if they were injured during
the job. If a licensed tradesperson or their employee turned out to be a deemed worker the policy
would cover them also. (Workers Compensation Act 1987 Section 20)
If a worker is disabled in an accident, whilst working on your project, it could become your
responsibility to fund all medical expenses and loss of wages etc and this might continue on for
years. The final cost to the owner-builder can be ruinous.
Without this insurance an owner-builder can be penalised for breaching the law and lose the
entire project if someone sues for damage caused to them by the owner-builder work.
There is an adequate standard workers compensation policy called Minimum Premium General
Worker Compensation Policy obtainable from numerous licensed Work Cover insurers generally
for a cost of around $175 (incl GST) and is considered money well spent.
ACT Work Cover is the government authority responsible for enforcing laws relating Workers’
Compensation. They provide a wide range of advice and support to workplaces and the general
public contact or email ACT WorkCover or Ph 6205 0200
Other Optional Insurances
The following non-mandatory insurances are highly recommended and are often required by
lending authorities as part of their loan approval\ funds release policy and essentially cover
Construction (or contract works), Public Liability and need to be put in place BEFORE
construction begins.
Some home and contents policies may provide a limited (automatic) extended coverage for
renovation works, often up to a maximum works value of approx $20,000, which is quite limited.
You must always advise your insurer in writing of your intention to renovate or extend and seek
confirmation of exactly what coverage you have.
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If your insurer does not provide adequate coverage then you should consider obtaining separate
Construction and Public Liability insurances and put them in place BEFORE you commence
construction.
Tip: Construction works insurances can include cover for your existing structure if your home
replacement policy does not extend to protect you during construction works, so once in place
you should ask if you can cancel any pre-existing home REPLACEMENT policy for the duration of
the works and request a refund on the unused balance.
What does Building Project Insurance cover?
Construction (or contract works) Insurance; in general terms this type of policy protects you
against the risks encountered during construction, including theft of materials and appliances,
malicious damage and storm, wind, fire or water damage.
The policies vary considerably so always check what is specifically covered. It is wise to purchase
a policy that also provides cover for demolition, damage to the existing structure, removal of
debris, and professional fees (architects, engineers) in the event of a major claim.
Public Liability Insurance: minimum cover of around $5 million generally covers against third
party personal injury and property damage, that occurs as a result of negligence during the
building project.
Third party personal injury cover would include such things as a member of the public falling over
materials or into an excavation. Property damage would include damage to someone else's
property such as your neighbours if the roof tiles fell off and damaged their house or car.
Most public liability policies don't cover you or your subcontractors but some insurers offer options
such as worker to worker, voluntary worker, personal accident and workers compensation, which
should be carefully considered.
These insurances generally commence on the date specified on the proposal form and conclude
on the issue of the Occupation Certificate, certificate of final inspection, occupation of the
property or expiry of the policy period, whichever is the earlier.
Insurance premiums are determined on the cost of the works and location of the property and
generally range between $500 - $1,500 excluding state taxes and incorporate excesses of a
similar range.
Taxation
All contracts and quotations 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.
For more information visit: ATO and go to ‘Tax Topics Explained’.
Owner-builders are not required to submit Business Activity Statements (BAS) 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.
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.
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.
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Owner-builder Insurers Contacts
It is almost unheard of for a registered builder to commence any construction project without a
comprehensive insurance package in place.
Owner builders routinely do exactly this however, even though the financial risks they face are often
larger. Owner builders face a unique set of risks and responsibilities, and insurance is essential. But
poor insurance can leave you nearly as exposed as if you had no insurance at all.
In conjunction with owner-builder insurance expert Trades Essentials, ABE Education has
compiled an electronic quoting tool for your exclusive free use. On the Trades Essentials Page you
can obtain a competitive quotation for all your project insurance needs including all mandatory and
recommended insurances and specialist trades insurance, at no obligation.
We recommend you obtain insurance before commencing your project and get peace of mind.
Visit Trades Essentials, Ph: 1300 664 923,
OI BI Advisory Note No3 - Project Insurance
•
What happens with your building replacement insurance
policy when renovating?
•
How do I calculate the cost of my home replacement value?
•
For how much do I insure and what are the traps of under
insuring?
•
How do I complete a policy application and what information
will the insurer require?
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OIBI Course Question No 16
If a contractor engaged by an owner builder has an injury on the work
site, that contractor
(a) will always be covered by their own Workers Compensation policy
(b) will not be covered in any case as they are not working for a
company
(c) could potentially lodge a workers compensation claim against the
owner builder
(d) Would never lodge a claim for Workers Compensation
OIBI Course Question No 17
What is workers compensation insurance?
(a) Worker accident insurance and includes the loss of wages
(b) Fidelity insurance
(c) House and contents insurance
(d) Compensation insurance for domestic cleaners
OIBI Course Question No 18
What are the recommended project insurances?
(a) Public liability & construction insurance
(b) Fidelity insurance & domestic workers insurance
(c) House and contents insurance
(d) Answers (b) & (c)
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Section 6
PROJECT SET UP, OCCUPATIONAL HEALTH & SAFETY (OH&S)
ACT Work Cover is the government authority responsible for enforcing laws relating to Occupational
Health & Safety (OH&S) and Workers’ Compensation, rehabilitation and certification. Work Cover
inspectors are appointed under the Act to ensure compliance with the legislation.
They provide a wide range of advice and support to workplaces and the general public regarding
information and resources for improving workplace health and safety. If you have an occupational
health and safety inquiry, hazard or issue to manage, you are welcome to contact
[email protected] ACT WorkCover or Ph 6205 0200
As an owner builder you are responsible for site management and for ensuring safety precautions
are in place.
Under the Occupational Health and Safety Act 1989 (the Act) as an owner builder you have duties
and responsibilities which minimise the risk of injuries at or near workplaces. Another publication is
the Occupational & Safety Act 1989 Guide For Users
You need to be aware of Workcover requirements on workplace safety.
ACT Workcover have produced a handy publication called the Building & Construction Industry
Handbook which provides a common set of basic safety requirements, to sites, regardless of size
and deals with a variety of hazards that have the potential to reduce the highest level of risk.
Appropriate safety measures are suggested to control the hazards and minimise the risk visit:
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.
Very substantial fines now apply if the minimum health and safety requirements are not met
and the following are a list of Work Cover Codes of Practice and Guides that an owner-builder
might have a need for;
•
Amenities for construction work
•
The building industry Guides
•
Manual handling
•
Excavation work
•
Electrical practices for construction work
•
Formwork
•
Safety line systems
•
Safe work on roofs- part 2- residential buildings
•
Occupation Health & Safety and Site Induction
OH&S Regulations 2001, regard the owner-builder as the “controller” of the work site.
As the “controller” of the premises you are also required to ensure that all contractors have
undertaken an OH&S accredited induction training course and carry a ‘green card’ and that
they complete on site orientation before commencement of work.
The Regulation requires that controllers of premises must ensure that their premises are safe
and without risks to health. The new regulations that apply to a controller of premises do not
apply to premises only occupied as a private dwelling. If the owner builder employs any persons,
they then become an employer, and are subject to the employer provisions of the OHS Act 2000
and Regulations
The owner-builder must ensure that all visitors and trades people 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.
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Site Amenities
As an owner-builder, you are required by law to provide suitable amenities on site for the use
of the tradespeople you engage.
The following are the minimum site amenity requirements:- fresh drinkable water, an appropriate
first aid kit, clean toilet, a shaded comfortable area where workers can take refreshment breaks,
a refrigerator and microwave.
Workcover inspectors also investigate employee complaints, undertake investigations in relation to
prosecutions, workplace accidents and dangerous incidents.
Compliance tools include:
•
Compliance Agreement
•
Improvement Notices
•
Prohibition Notices
•
Infringement Notices (See Information Bulletin 02.11)
•
Enforceable Undertakings
•
Injunctions
•
Prosecution and substantial fines can occur
Noise
Maintenance, repairs and building work must only occur within certain hours and on certain days
and must not exceed certain noise levels. For more information read about noise in residential
areas from the Department of Territory and Municipal Services.
Water, soil and pollution
Builders need to ensure the soil on the building site does not enter the stormwater system and
pollute waterways. For more information read about stormwater pollution in residential areas from
the Department of Territory and Municipal Services.
Trees
Significant trees as identified in the building plans must be protected. For more information read
about tree protection legislation from the Department of Territory and Municipal Services
Building work and lease boundaries
Demolition and building work must only occur on the property for which it has been approved. If you
are in doubt about work encroaching on your property or other aspects of building work on
neighbouring properties, Contact the ACT Planning & Land Authority Ph (02) 6207 1923.If you are
concerned that someone has not complied with their lease or their development approval, you can
make a compliance service request or make an application for an order .
Nature strips and footpaths
The Department of Territory and Municipal Services must give written approval to store or place
items on nature strips and to place items across nature strips or footpaths. Street trees must not be
pruned or removed. Vehicles and trailers must not be parked on nature strips. Foliage must not
obstruct pedestrian access to footpaths or the nature strip 1.2m from the back of the kern. For more
information read about nature strips from the Department of Territory and Municipal Services.
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Rubbish
Rubbish bins must be provided on site and used. If they are not, a rectification order may be issued.
Inquiries about rotting garbage, vermin and stagnant water can be made to the Health Protection
Service.
Lead in Buildings;
Most pre 1970 houses are likely to contain lead-based paint and or dust within the roof void
(attic) and wall cavities. Even if only small amounts of lead are ingested (through breathing or hand
to mouth contact) it can present a very significant health hazard particularly to young children and
pregnant women who can suffer from acute lead poisoning, leading to serious long term effects.
Ceiling / Wall Dust; If you intend altering internal walls or ceilings or installing and attic ladder
and there is dust in the roof void you should seriously consider having it tested (for lead
or pesticides) and then having it professionally vacuum removed using an approved HEPA
filtered system, before renovating.
Never attempt to vacuum it yourself using a normal vacuum as you will most likely spread it around
further.
Painted Surfaces; if your house pre dates 1970 and your renovations involve painting you
should attempt to test all existing paint for the presence of lead before painting works commence.
Most lead poisoning cases have resulted from home renovations which were poorly managed.
If you or a child may have been exposed to lead the only reliable way of knowing is to have a blood
lead test conducted by your GP.
The Lead Advisory Service Australia provide advice and support about any lead related questions
including where to have samples of paint, dust or soil analysed, how to take simple steps with diet
to reduce the absorption rate of lead, how to undertake a safe renovation or how to ensure your
tradesperson uses safe methods.
The Lead Advisory Service Australia also provide:
•
free telephone service call 1800 626 086 Ph (02) 9716 0132
•
free written material Email and Website, Fax (02) 9716 9005
•
community workshops and meetings to parents.
•
DIPNR put out a Guide called "Managing Lead Contamination in Home Maintenance,
Renovation & Demolition Practices"
•
A copy can be obtained by visiting managing lead website
Asbestos in Buildings;
Prior to the 1980’s asbestos was used in as many as 3,000 products and some people consider
that asbestos is present (in one form or another) in as many as 50% of all Australian houses.
Asbestos left untouched may not pose a problem, but if it's tampered with by drilling, sanding
or sawing, it can kill you, as the tiny fibres in asbestos become airborne and can be inhaled into
the lungs.
This can then lead to a hideously lethal type cancer called mesothelioma.
Mesothelioma can take up to 40 years to develop, but once you've been diagnosed, the average
life expectancy from that point is around 12 months.
Flinders University research estimates the number of people diagnosed with asbestos-related
diseases will peak around 2020. By then there will be 13,000 cases of mesothelioma and up
to 40,000 cases of asbestos-related lung cancer. That's 53,000 cases of incurable cancer caused
by asbestos over the next 20 years!!!
For these reasons, before renovating, it is best to have a specialist check your house and
determine if any asbestos is present and what risk it may present. Owner builders cannot handle
asbestos, (other than bonded asbestos). It is recommended that before you undertake building or
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renovation that you contact Asbestos Info ACT Work Cover for advice about the hazardous
products may be involved in the proposed work.
Some councils, now require an asbestos clearance certificate before allowing renovations to
commence, so always check with your local council first.
The removal of asbestos must be taken seriously and should ideally be removed by licensed
contractors wearing specialist equipment and use HEPA filtered vacuums to clean up any residual
dust and then dispose of an approved manner, in marked sealed plastic bags. Never place asbestos
material in a standard skip bin.
It is important that any asbestos removal work is carried out in accordance with the 2005 NOHSC
Code of Practice for the Safe Removal of Asbestos.
The Asbestos Foundation of Australia suggests no-one handle asbestos products. Always call in
the professionals. However if you must work with asbestos, the following suggestions can't
guarantee your safety, but will help reduce the risk of exposure to the deadly fibres.
•
Always use a respirator approved to Australian Standard A.S.1715 to protect against
asbestos. Wear disposable coveralls and leather gloves.
•
If you do not use disposable overalls then wear old clothes. When you have finished work
put the clothes into a rubbish bag and seal it. Do this before you remove your mask.
•
Don't allow anyone else to touch the clothes.
•
Always thoroughly wet the material you are working with to reduce dust.
•
Use drop sheets to collect debris and hand tools rather than power tools and never sand,
cut or abrade asbestos.
•
Don't allow any family members or other people near where you are working.
•
Never sweep up. Always use a HEPA filtered vacuum cleaner to clean up any dust.
•
Put the vacuum bag carefully into a heavy duty rubbish bag and seal it. Keep your mask on
while you do this.
•
Put any discarded material in a heavy duty rubbish bag and seal it. Then remove your mask
and seal it in a rubbish bag.
•
Never put the rubbish bags in your garbage bin and do not take them to the tip. Call your
local council for the Department of Environment and Conservation Pollution line (Ph 13 15
55) on the transport and disposal of asbestos. When using a skip call your skip supplier and
ask if the provide asbestos bins as many now do at extra cost. It is illegal to reuse or waterblast asbestos cement.
•
Shower thoroughly immediately after finishing work.
•
See your doctor if you think you have been exposed to asbestos.
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Regulations about dealing with asbestos vary from State to State but that they are based
on national guidelines produced by the National Occupational Health and Safety Commission
(NOHC) which have produced three central documents relating to asbestos;
National Code of Practice for the Safe Removal of Asbestos
National Standards Codes of Practice and related guidance material
Guide to the Control of Asbestos Hazards in Buildings and Structures
Guidance Note on the Membrane Filter Method for Estimating Airborne Asbestos Dust
Work Cover ACT has some valuable documents relating to asbestos visit;
Contacts
•
The Work Cover Assistance Service Ph 13 10 50
•
Asbestos Diseases Foundation Ph: 1800 006 196 or email
•
Asbestos Information Support Service 03 9654 95555 or email
•
Department of Environment and Conservation Pollution line Ph 13 15 55.
Hazard Identification, Risk Assessment and Control
Owner-builders have a duty of care for site safety and must ensure that all Work Cover health and
safety requirements are observed which includes ensuring the site is made safe during construction.
The method by which the owner-builder carries out his or her duty of care is through a spot check
auditing system.
The following system will assess site conditions and confirm the existence and accuracy
of a relevant Job Safety Analysis document;
The hazard identification and control process steps are defined as:
(1) Identify the Hazards
(2) Assess the Risk
(3) Select the Control Measure
(4) Re assess the Risk
Prior to the commencement of the work, an attempt must be made to identify all the hazards
associated with the task. Ideally this should be done by more than one person. To identify the
hazards you must:
•
Physically inspect the work site
•
Review the job steps required to complete the task
•
Review the standard work instruction if there is one available
•
Discuss the job with your supervisor
Sources of Hazards
When searching for hazards consider all the potential sources including:
•
Hazards which are already present in the work area as a result of operations, environmental
conditions, plant layout and equipment design and condition
•
Hazards which you may generate as a result of the work you are doing
•
Hazards which other people may generate as a result of the work that they are doing
•
Hazards which may occur if the operating conditions change; e.g. starting and
stopping plant
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•
Hazards which may be generated if there is a failure of an item of plant or tools
and equipment
•
Hazards which may arise because of changes in the environment; e.g. what will happen
if it rains?
•
General Principles for Identifying Types of Hazards
The identification of hazard types from each of the sources fall into two main categories;
•
Hazards which have the potential to cause an injury as a result of transferring excessive
energy to the body (damaging energy concept).
•
Hazards which have the potential for direct biological consequence on the body and
its systems.
The damaging energies which involve the transfer of energy to the body include the following
categories:
Gravitational; this occurs when an object can fall on you or when you may fall over to the
same level or to a lower level. This includes hazards such as slips, trips, fails from heights
and failing objects.
Object; The potential for the sudden release of energy from a pressure source such as water
supply, process fluid, hydraulic and pneumatic systems. It can also result from engulfment
by materials such as sand, soil, etc...
This occurs when an objects has been mechanically deformed and has the potential to suddenly
return to its original shape or position. It includes systems with springs or items that have been
deformed during installation.
This occurs when there is an object in motion (which may also be you) and an event occurs which
needs to stop, reduce or accelerate the motion. This includes hazards such as crushing, striking,
projectiles, entanglement
Thermal; occurs when there is a transfer of energy from a heat source which is beyond the
body's capability to handle, resulting in a burn. The heat source may also be a consequence
of a combustion process, chemical reaction, friction or thermal conduction or convection.
Is the potential for an injury as a consequence of exposure to a hot environment over a sustained
period which results in an overload of the bodies’ temperature control system.
The direct biological consequence hazards include:
Human; can result if you attempt a task, which is beyond your capability at that time. It may be
that the task is normally within your capability but because of the technique used or the ergonomics
it may still lead to an injury. Manual handling issues fall into this category and the typical
consequence is a sprain or strain.
Is the potential for injury as a consequence of the multiple repetition of a task which is normally
within your capabilities if it is only performed infrequently? This includes things such as RSI
(repetitive strain injury), tendonitis etc.
Fatigue the potential for an injury from the continuation of a task which is normally within your
capabilities if it is done for a short time. This can result from tasks which involve sustained posture
or sustained effort.
Electrical; when there is a possibility that you may provide an electrical pathway for sufficient
current to flow through you to cause electrocution.
Noise; occurs when there are high noise levels over a sustained period or when there are extremely
high levels over a short period. This can result in temporary or permanent hearing loss.
Chemical; which can be absorbed or ingested and will directly affect the systems of the body.
This includes things such as carbon monoxide, pesticides, solvents and lead compounds used
in the laboratory, which can trigger disease or a reaction from the body. For example, high levels
of spores in bagasse dust can trigger a response from people with asthma and rubber gloves may
trigger a skin reaction in some people.
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Machine; which can lead to injury as a consequence of the effects on the circulatory system,
by exacerbating wear of joints and effecting eyesight and balance.
Susceptible Shape or Part; is the potential for a puncture or penetration of the skin as a result
of handling or coming into contact with sharp objects. In these cases the "bearing" pressure of the
object is greater than what the skin is capable of resisting.
Radiation; may be in the form of visible light (sunlight), infrared radiation, ultraviolet radiation and
X rays. This radiation may directly affect or mutate the cells of the body.
Other; Viruses and bacteria which can directly cause disease.
Assess the Risk
Once a hazard has been identified, the potential for an injury as a result of exposing people to that
hazard must be determined. Using the risk assessment process as illustrated in the table below
does this. This requires you to:
•
Make an assessment or the severity of the most likely injury that would occur from
an exposure to the hazard (refer to consequence table).
•
Assess the likelihood of an event happening which will lead to this injury (refer to likelihood
table). When assessing the likelihood of an injury. You should take into account how often
and how long people will be exposed to the hazard.
Using these two factors select the risk rating from the table.
The determination of the risk score places the hazard risk in one of the categories as shown in the
following table. This risk category or priority is used to determine whether the risk is acceptable or
whether some sort of mitigation is required before the task can be carried out.
Risk Priority
HIGH
The hazard must be controlled before task commences.
SIGNIFICANT Deal with as soon as possible, and Establish short-term controls before
the task commences.
MODERATE
Should be controlled but corrective action not urgent
LOW
Would normally be considered an acceptable risk.
Ideally all hazards should be reduced to the "low" category and this should be the goal of any risk
reduction program. Any hazards that do not fall into this category should therefore be analysed
to see if the risk can be reduced by the application of a control measure.
Controlling the Risk
If a hazard presents a risk that is not in the "LOW” category then an attempt must be made
to implement a control measure, which will reduce the hazard risk to an acceptable level.
When developing a control measure, there are two concepts that need to be considered:
The hierarchy of control and the Energy Paths.
The concept of hierarchy of control is shown in the diagram below. It stipulates the order
of preference in which the different types of control measures should be applied to reducing risk.
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To assist further in this regard please refer to the job hazard profile listed below
ACCESS TO JOB/TRAFFIC
• Traffic hazards.
•
Ground conditions – stable,
slippery, uneven or sloping.
•
Lighting OK and access and
escape routes clear.
SITE HAZARDS
• Electrical
Manual Handling
• Positions of people.
• Size, shape, load and duration.
Mechanical Hazards
• Rotating machinery or noise.
• Component failure or oil spills.
Other Hazards
• Confined spaces.
•
Wires down/emergency
conditions.
•
Hazardous substances or dusts.
•
•
Asbestos.
Live conductors.
•
•
Weather and sun.
Identify minimum approach
distances.
•
Sharp objects e.g. syringes.
•
Presence of temporary insulation.
•
Insects/Pests
•
Earthing requirements.
•
Radiation (eg microwave, etc)
•
Contact with overhead live
LV parts or equipment (including
street lighting, Optus/Telstra
systems).
•
Contact with live LV parts
or equipment in substation
or on switchboard etc.
•
Work on or near equipment or
parts which can become
energised.
•
In service underground cables
•
Induction Voltage
•
Damaged or frayed electric
cords/plugs
•
Hazards from Heights or Falls
•
Pole condition; open excavations.
•
Falling objects, equipment
working overhead.
•
Pre-climbing procedures.
•
Positions of people
•
Size, shape, load, duration
•
Hazards from Crushing
•
Pre-climbing procedures
•
Moving equipment.
•
Unsupported equipment/poles.
•
Roll over
•
Material falling onto workers
•
Caught between/underneath
ACT Owner Build Course
HAZARDS TO THE ENVIRONMENT
• Damage to flora and fauna.
•
Erosions, site restitution
•
Pollution to air, stormwater and land
(soil control, oil/chemical control –
spill kit needs?)
•
Minimise wastes.
•
Aboriginal sites.
•
Excess noise.
HAZARDS TO/FROM PUBLIC
• Other trades and contractors.
•
Customer medical alert needs.
•
Inexperienced team members
•
Unauthorised entry
ABNORMAL SITUATIONS/CHANGES
BE ALERT. What abnormal situations.
Misuse or changes in conditions can you
foresee?
REPORT lapses in security (e.g., open
doors, holes in fences, persons acting
suspiciously, unauthorised vehicles and
missing/broken locks, etc) to the
Supervisor or Franchisee.
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HIERARCHY OF CONTROL
There may be more than one control method for each hazard.
Step 1. DO THIS FIRST
•
ELIMINATE the hazard from the work place.
Step 2. DO THIS NEXT
•
SUBSTITUTE the hazard with a less harmful one
•
ISOLATE the worker from the hazard
•
MODIFY / REDESIGN the work to reduce the hazard
Step 3. DO THIS LAST
•
ADMINISTRATION / PPE. Personnel Protective Equipment or additional training.
•
OTHER: Specify this control on the Pre work Hazard Assessment Form (Form 310)
For example, wherever possible the hazard should be eliminated entirely by designing it out in the
first place or not undertaking the task.
In reality however this is not always practical and other means such as the use of administration
controls and the wearing of personnel protective equipment is necessary to fill a short term need
or because there are no other ready solutions available.
The concept of energy pathways deals with where it is best to control the hazard.
Controlling the hazard at the source virtually eliminates the chance that the hazard can present
a significant risk to personnel.
Controlling the hazard along the pathway is considered to be the next best option but to a certain
extent, the hazard has already "escaped" and we are trying to play catch-up.
Controlling the hazard at the person is considered to be the least desirable because it leaves
no margin for error. This normally takes the form of personal protective equipment (PPE).
This does not mean however that the use of PPE will ever be eliminated; far from it. The big
advantage of PPE is that you can take it with you wherever you go.
General use PPE such as safety glasses, boots and long clothing help to provide protection against
hazards that you have not considered or are aware of. Controlling at the source or along the path
in contrast requires you to be aware of the hazard.
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Re Assess the Risk
Once a control measure has been selected an evaluation needs to be made to determine how
successful that control measure would be if it was applied. This is done by using the same risk
assessment process and as shown in the following flowchart.
RE ASSESSMENT PROCESS
Ideally the risk should be reduced to the "LOW” category and this should be the aim of every
risk reduction process. In practice however this may not always be practical or possible.
As a general rule if a hazard risk is still in the serious or high category then we need to have
another go at developing a suitable control measure and the task should not proceed until
we are acceptable.
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Pre Work Hazard Assessment Check
STEP 1: JOB DETAILS
Fill out the job details and assess the overall job conditions before completing the Pre work OH&S
and E Hazard Identification and Risk Assessment Form (Form 310).
STEP 2: IDENTIFY THE HAZARDS
Anything, which may cause harm now, or in the future, through injury or ill health, to any one at,
or near a work place, is a hazard. Consider and list the hazards that may arise out of the work
activity or that develop over the course of the work.
STEP 3: ASSESS THE RISKS ARISING FROM THE HAZARD
Record the risk rating for the hazard that you have identified in the table headed "Matrix Rating".
NOTE: Any Hazard with a matrix rating of 1 must be eliminated / controlled to an acceptable level
before work can proceed.
QUESTIONS TO ASK YOURSELF
(1)
Does the nature of the hazard pose a risk?
(2)
Do I need to look at a combination of hazards?
(3)
What types of incidents are foreseeable?
(4)
Will the rating increase with duration of exposure to the hazards?
(5)
Does the workplace layout pose hazards?
(6)
Will the introduction of new work reduce/increase the hazards?
(7)
What is the skill and experience level of the crew?
(8)
Will the existing control measures be adequate?
(9)
What will be the work posture and position?
(10) Has the person carrying out the task been suitably trained?
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Definitions
Consequence
Likelihood
(1) Minor Injuries
First Aid
(1) Rare
This event has never
happened NOR is it
likely to
(2) Important
Medical
Treatment
(2) Unlikely
There is only a
remote chance of
this event occurring
(say 1 in 100)
(3) Serious Injury
Lost Time Injury
(3) Possible
It is realistic that the
event will occur at
some time (say 1 in
10 years)
(4) Major Injury
Permanent
Disability
(4) Likely
There is a good
chance this will
Occur (say 1 time
per year)
(5) Possible
Fatality
(5) Almost
Certain
This event will
almost certainly
occur. (say more that
10 times per year)
Injuries
Fatality
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Examples of Nominated Control Methods
Traffic hazards
Access to job
Electrical Hazards
A
Eliminate = Detour the traffic
D
Modify = Traffic Controller 1 Traffic Cones 1
Warning Signs
C
Isolate = Barricades
D
Modify = Limit your exposure to the hazard by work
A
Eliminate = Render the service 'dead'(C)
C
Isolate = Insulated barriers on live equipment /
insulated tool
E
PPE = Insulated gloves
Hazards from
Falls/Heights
B
Substitute = Replace unsafe/damaged pole
D
Modify = Utilise EWP / support structure
E
PPE = Harness / CDD /
Hazards from
Crushing
D
Modify = Support equipment
Manual Handling
D
Modify = Team lifting / using mechanical aids/
redesigning work to lessen load
B
Substitute = Replace heavy equipment with lighter
Mechanical
Hazards
E
PPE = Gloves / steel cap boots / hearing protection /
spectacles
C
Guarding in place
F
Take care of others
Hazards in/to the
Environment
A
Eliminate = Remove the contaminant / evacuate the
area
C
Isolate = Contain the contaminant
Other
C
Isolate = Barricades / barrier mesh
Other e.g.
weather
A
Eliminate = Stop work when there is lightning / rain
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ABE Education
FIRE
INJURY/ACCIDENT
ENVIRONMENTAL
ASSESS the danger to
yourself or Others
ASSESS the danger to
yourself or others.
PREVENT further damage
occurring:
Shut down or isolate
the source
ASSIST anybody in
immediate danger.
ASSIST anybody in immediate
danger:
Remove from the source
of danger,
RAISE the Alarm
REPORT the incident
to your supervisor.
Administer First Aid
Contain the incident
FIGHT the fire
RAISE the alarm
With whatever materials
Only if it is safe to do so,
Report to your supervisor
immediately.
Available if safe to do so
Only with the equipment you
are trained and competent
to use.
SECURE any adjacent plant
or equipment:
SECURE any adjacent
plant or equipment: Isolate
or switch off any nonessential plant,
Isolate or switch off any
electrical equipment Close
any gas or fuel supplies,
SECURE any adjacent plant
or equipment:
Move any vehicles or plant
if trained and competent to
do so.
Isolate or switch off any
electrical equipment
Close any gas or fuel
supplies, Move any vehicles
or plant if trained and
competent to do so.
Move any vehicles or plant
if trained and competent
to do so.
PREVENT others from being
endangered:
REMAIN at the scene until
made safe:
Direct traffic away from area,
If you are a witness,
provide information for the
incident report.
Keep onlookers at a safe
distance.
EVACUATE the area and go
to the muster point:
When it becomes obvious,
When instructed to do so.
Close any gas or fuel
supplies
Provide further help
if required
REMAIN at the scene until
made safe:
Provide further help if
required,
REMAIN at the muster
point: Make yourself known
to the fire warden, Assist
with the roll call
ACT Owner Build Course
If you are a witness, provide
information for the incident
report.
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ABE Education
OIBI Course Question No 19
Which ACT Government authority is responsible for the implementation of
laws relating to Occupational Health & Safety and Workers’ Compensation,
rehabilitation?
(a) ACT Department of Occupational Health and Safety
(b) Dept of Energy & Resources
(c) Work Cover ACT
(d) ACT Planning & Land Authority
OIBI Course Question No 20
Which groups are most at risk from lead poisoning from lead-based paint or
dust?
(a) Your pets
(b) Pregnant women and young children
(c) Your contractors
(d) Answers (a) & (c)
OIBI Course Question No 21
What is percentage of Australian homes considered to contain asbestos (in
one form or another)?
(a) 15%
(b) 20%
(c) 50%
(d) 40%
OIBI Course Question No 22
Which ACT Government Department is responsible for providing written
approval to place items on a nature strip?
(a) Department of Territory and Municipal Services
(b) ACT Planning & Land Authority
(c) Department of Community Services
(d) ACT Nature Strip Authority
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Section 7
PROJECT CONTRACTS, WARRANTIES & CLAIMS
It is amazing how many people begin building without a written contract and then, when
everything goes pear shaped and costs/ time escalate out of control, wonder why they have
to resort to expensive mediation or litigation to get some redress.
A good contract is the foundation stone of successful building or renovation and can save
major grief later in the project, so getting it right upfront is very important. Even if the work is valued
at less than $1,000 you should still note all relevant details in writing so that any dispute with your
contractor is minimised. Also try to include a clean-up clause for each contractor so that they are
responsible for their own rubbish removal.
A good residential building contract should include the following:
Your name and the name of the contractor as shown on their licence/ quotation together with
Contractors licence number (make sure the contractor’s name matches exactly the name on
the licence and not someone else).
A sufficient description of the work to be carried out including attaching any relevant
architectural or engineers plans and specifications
The registered business name of the contractor may also be included in the contract in
addition to the above information.
The date that the contract was signed by both you and the contractor.
The contract price prominently displayed on the front page and a warning and explanatory
note if the contract price is not known or subject to change. Where a contractor wants to
charge by say an hourly rate without indicating the number of hours, insist on at least an
estimate with an explanation.
Further contract inclusion checklist;
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
A clause that states that all plans and specifications for work to be done under the contract
(including any variation to those plans) are taken to form part of the contract
A clause that states that the work will comply with (a) Building Code of Australia to the extent
required under the EP & A Act 1979, including any instrument made under that Act, (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 relevant development or building approval
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 all project variations must be in writing.
Because a contract is essentially an agreement between the parties you have every right to refuse
to use any contract that might be offered by your contractor and nominate your own.
The ACT HIA & MBA have developed residential works contracts for works up to $10,000 and also
for contract sums above that. Visit HIA & MBA residential contracts can be purchased on line HIA
Shop and by phone from MBA
These contracts are suggested as they are fairly comprehensive and cover most essentials, and are
completed well recognized and acceptable to contractors.
There should be two original contract copies signed by both parties before works commence and
you should read it before signing!! Clause 87 (1) (b) of the Building Act 2004.
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Other standard building contracts are also offered by the Royal Australian Institute of Architects
(RAIA) are quite satisfactory however they are only suitable when and architect has been
contracted as the project superintendent. Contact the RAIA (email) and it can advise on a suitable
contract.
MBA 2007 Contract Price List
OIBI Advisory Note No 5 - Project Progress Payments & Variations
•
•
•
•
What are progress claims & payments & how do they work?
What are project variations & how do they work?
What is practical completion & when is it reached?
Contract term definitions including provisional & p.c sums
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What are the different ways of contracting with a contractor?
There are several ways to hire a contractor apart from the normal “fixed lump sum quote”.
Traditional ‘fixed lump-sum’ agreements minimize the risk of cost blow-outs and provide
an end-cost before the first sod is turned (see answer on Variations).
There is also cost-plus or project management.
Under a cost-plus contract, the contractor is engaged on agreed hourly rate plus the cost
of materials plus an agreed profit margin, usually in the range of 7-15% (excluding architect
and consultants’ fees and GST) and is often used when the final cost is difficult to estimate,
but is a very open-ended arrangement for the client.
Cost-plus can be a gold mine for an opportunistic contractor, but it can save a lot of money
if you can trust him.
Contracts for building work done on a ‘cost plus’ or project management basis are more specialised.
Such contracts can be purchased through the RAIA, Housing Industry Authority or Master
Builders Association.
OIBI Course Question No 23
If you do not like a contract that a contractor asks you to sign can you
nominate your own preferred contract?
(a)
(b)
(c)
(d)
No
Yes
Not Always
Don’t Know
OIBI Course Question No 24
Why are good building contracts so important?
(a) They help to get your contractors paid on time
(b) Can prevent the need for expensive mediation\litigation and are
the foundation stone of successful building
(c) Not important as the ACT Planning & Land Authority can help with
any problems
(d) Who needs a contract when a verbal agreement is given
OIBI Course Question No 25
What are some of the more common ways of contracting?
(a) Traditional lump sum or fixed price and cost-plus or project
management
(b) Ask the contractor to do the work and bill you at the end
(c) No common way as all contractors have a different way to contract
(d) Who needs a contract as hand shake is sufficient good will
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Section 8
PROJECT CONTRACTORS & CONSULTANTS
Selecting the right contractors for your renovation or new home construction is probably one
of the most important things in achieving a successful outcome and yet few people take the
necessary time and effort to properly research and check references.
Choosing the wrong contractor often leads to confrontations, bad workmanship, cost and
time blowouts.
The following steps will help you find and select the right contractor:
Tip: Get to know fellow renovators in your area as they can be a valuable pool of information
in sourcing materials and good subcontractors.
Use your local paper classifieds or the yellow pages to find contractors, speak with friends
and ask for names.
When you have found contractors ask them to provide a list of recent projects and a current project
and the name and contact details of the clients.
Be wary of any contractors who stall or only provide one example.
You might care to draw up a table like the one below for the larger contract contractors listing
the client/project names and questions you wish to ask the various clients.
ContractorX
Contractor
Time To
Complete
Variations
Communication
Bookwork
Work
Defects
General
Quality
Client /
Project
Client /
Project
Summary Comments:
Ring the clients and politely ask them and if they would mind discussing their contractors, noting
that it was the contractor who provided their details. Ask the following questions and give them time
to speak their minds freely as you might be surprised how much they are prepared to reveal.
Contract Ask what type of building works were undertaken by the contractor, whether the works
were overseen by an architect or the client. Was the project done on a fixed lump sum or cost-plus
basis? What type of contract was used - did the contractor nominate the contract for signing
and were you happy with it? When was the project undertaken? How quickly did the contractor
require payment?
Time to complete Did the contractor start when they said they would, when they started did they
finish within their stated completion time? Were they generally happy with the labour and materials
programming and the final completion date? What time does the contractor start of a day and did
they work Saturdays.
Variations By what percentage did the initial contract sum increase, how many of the variations
were contractor -generated or client-generated, did the contractor submit variation costs before
undertaking the work, were the variations reasonable or did they feel the contractor had a go
at them? Did the contractor provide good substantiation for all variations?
Communication How well did the contractor communicate during the course of the project?
Were they civil, professional and did they keep you up-to-date on progress? How did they interact
with the other contractors?
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Bookwork How was the contractor with his paperwork was it neatly presented (typed), accurate, on
time and did it make sense. Did the contractor submit weekly claims or as per contract progress
claims and were they only submitted after the work was done?
Work Quality Were they generally happy with the quality of work by the contractor? Was there
any independent expert review of the completed works and if so how did the contractor respond
positively or negatively? Have the works since stood up to the test of time?
Defects rectification was there any defective work and how did the contractor respond
to rectifying it?
General Once started on the job did the contractor work continuously until completion 5-6 days
a week? Were there any large time lapses when nothing was being done.
At the end of the project did the contractor provide certificates of compliance or warranties?
If the contractor has given you the details of a current similar project ring the owner and ask
if you can visit the site and look at the job as this can provide further insight.
Don’t select a contractor because they have submitted the lowest price because any price
differences can easily be eroded by variations, particularly if the project documentation
is inadequate.
Selection by price alone is a poor criterion.
If there are large differences between the highest and lowest quotations this can often
be an indicator of discrepancies within the tender documents and it is usually safer
to consider the middle-placed contractor.
Building Professionals (Consultants)
Building Certifier is either an organization or individual licensed by ACT Planning and Land
Authority to issue building approval and certify building work at inspection stages for compliance
with the requirements of the Building Act, Building Regulations and the Building Code of Australia.
Upon being engaged by an owner, a Building Certifier should ensure that the owner is made aware
of the Building Certifier’s role and responsibilities as well as their own, including mandatory critical
stage inspections.
Mandatory Site Inspections
The Building Certifier will want to complete various site inspections at critical stages of the project,
which are typically detailed on the Building Approval and often include structural inspections based
on the structural plans. It is the owner-builders responsibility to organise these inspections and to
inform any relevant contractors.
Building certifiers typically need to:
•
Issue building approval;
•
Issue the builder with a commencement notice;
•
Ensure housing indemnity insurance or a fidelity certificate is in place (where necessary)
before work begins;
•
Give copies of the approvals and plans to the Construction Occupations Registrar for record
keeping;
•
Conduct inspections during construction; and
•
Issue a Certificate of Completion once the building work has been satisfactorily completed.
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A building certifier is not necessarily responsible for checking all aspects of the quality of the work
undertaken by the builder/contractor. Some certifiers may provide additional services such as
quality control for an additional fee. However, some homeowners engage the assistance of a
representative, such as an architect or building consultant, to inspect and monitor the quality of the
work to ensure that it is being done in accordance with the contract.
Construction Manager a person or organization engaged by the owner to coordinate and manage
the construction site, review and assist in approving various contractor progress claims and assist in
obtaining various contractor quotations. Managers often provide a construction programme.
Many owner-builders are now using the services of a construction manager to co ordinate and
oversee their projects, often in a hands-on working role. Construction managers are often builders
or building consultants who are appointed on either a fee for time, fixed price or percentage of total
costs basis. This can allow owner-builders to continue working and pay off the construction loan
plus bring added expertise to the project and considerable peace of mind.
Tip: Some lending authorities, when considering a loan approval, look very favourably at the
involvement of such persons whom they consider will lift the level of expertise and standard
of workmanship on your project and therefore reduce their risk.
So if you do intend to use a licensed construction manager, provide their résumé details to your
lending authority with your loan application.
Architect; a person who is registered under an architect registration act and is qualified to practice
architecture including the design of buildings and administration of building contracts.
Building Consultant; a specialist professional often commissioned to provide independent advice
on the standard of workmanship, quality of construction, compliance with the BCA and suitability
of materials used.
Some owner-builders choose to substantially oversee the works themselves and then use a building
consultant to undertake site inspections at critical stages of the project, such as when floor framing
or waterproofing are complete or when contractor progress claims are submitted or at the end
of a project to independently determine unacceptable defective work.
If you use a building consultant always check that they are appropriately licensed and have
adequate insurances, particularly for public liability and professional indemnity, by requesting
copies of current insurance policies. Currently there is no mandatory requirement for Building
consultants or Pest consultants to carry professional indemnity insurance in ACT.
Structural engineer a professional qualified (and registered) to carry out structural design and
certification. Structural engineers are typically used to draw up plans of footings, concrete slabs,
roof framing and should be used to certify the work they have designed.
Geotechnical engineer when required is responsible for the investigation of the composition
of site soils, the classification, consolidation, strength, the flow of water through them, and the
active and passive pressures in them. Such information is then typically used to determine
the size of footings, site drainage and the size and type of building the site may support.
Land Surveyor a professionally trained person who selects measurements to be made of land or
buildings and the method of making them, with a view to accurate boundary definition, recording of
topographic detail (location, size and features) and sets these out on an identification Survey plan.
ACT Planning & Land Authority or lending authorities often require that an identification Survey plan
be completed either before and/ or after construction to establish that works are in compliance with
the approved site plan.
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OIBI Course Question No 26
Which consultant is responsible for the structural design and certification of
such elements as footings and concrete slabs?
(a) Hydraulic engineer
(b) Architect
(c) Structural engineer
(d) Mechanical engineer
OIBI Course Question No 27
When are building consultants often used by owner builders on their
projects?
(a) At critical project stages such as completion of floor framing and
waterproofing, when progress claims are submitted and/or at
completion of project
(b) Never as they are too expensive
(c) At the beginning to ensure the project site safety is set up correctly
(d) When the job gets too difficult for the owner
OIBI Course Question No 28
What is the role of a building certifier?
(a) To check on all the plumbing installations
(b) An organization or individual licensed by ACT Planning and Land
Authority to issue building approval and certify building work at
inspection stages for compliance
(c) To ensure no items are stored on the nature stripr
(d) To certify those building elements nominated by the owner-builder
OIBI Course Question No 29
What does a building certifier normally complete?
(a) Issue building approval & issue the builder with a commencement
notice
(b) Ensure housing indemnity insurance or a fidelity certificate is in
place (where necessary) before work begins
(c) Conduct inspections during construction; and issue a Certificate of
Completion once the building work has been satisfactorily
completed
(d)
All of the above
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Section 9
PROJECT RECORDS
Project Records why should I keep them?
There is a generalization about building contractors that those who are good at site works are poor
at paperwork, and vice versa. This is because many contractors hate paperwork and don’t keep
proper records. Instead they discuss important project decisions and then put them to memory,
often to be recalled wrongly at a later date.
Given the complexities of building and that it is an ever-changing process a site diary is a must,
to keep track of the job. You should record all significant decisions or discussions with your
contractors as well as materials and items that are needed. “Always put it in writing” is a cardinal
rule because should a building dispute arise lawyers and dispute referees first look to what has
been put on paper, and the very first place they look is the contract and the rights of both parties.
Use your project diary to summarily record (on the correct date) all discussions, instructions,
changes, verbally agreed costs, decisions, variations and completion dates.
Remember all contracts valued over $1,000 and all variations must be in writing.
A project diary will help your case later as to who said what. It is also helpful to record at the back
of the diary the contact details of all contractors as you may need them when the project is finished
or to act as a witness.
A picture is worth a thousand words so buy a cheap camera and keep a record, preferably on CD
ROM if the camera is digital, of the progress of the work. Some of the biggest successes against
poor building practices are the result of experts having access to a photographic record.
Areas of photographic importance are those building elements that
are eventually concealed by other building materials or linings.
These are some of the things you should ‘shoot’:•
Footing or slabs after reinforcement has been installed and just
before concrete is poured
•
Floor framing just before flooring is installed
•
Wall framing or walls before gypsum plaster (plasterboard),
wall linings or render is applied (These shots also record
where electrical cables or other services are located).
•
External window and door openings just before windows
are installed.
•
Bathrooms and other wet areas after the waterproof membrane
has been installed but before tiling.
•
Ceiling framing just before ceiling linings are installed
•
Party walls (particularly above ceilings) before wall/ceiling
finishes are applied
•
Roof framing before roofing is installed.
•
The rear face of retaining walls before they are backfilled.
•
Below-ground external services such as sub-soil drains, sewer
and stormwater lines before they are backfilled
•
The fixings used on balcony handrails
•
The compacted fill under paving
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Mandatory PCA Site Inspections the building certifier will want to complete various site
inspections at critical stages of the project, which are typically detailed on the Building Approval and
it’s the owner-builders responsibility to organise these inspections.
Depending on the type of project there are normally some 3 to 6 inspections required and
it is important to give say 48hours advance booking notice.
Example Inspections;
•
Piers (checking depth and bearing soil)
•
Footings/ slab after installation of reinforcement/ vapour barriers and prior to concrete
being poured
•
Wall, floor and roof framing prior to installation of floor/ wall and ceiling finishes
•
Stormwater installations prior to backfilling
•
Final prior to issue of Occupation certificate
Occupation Certificate
Is a certificate which establishes that the building has reached a stage at which it complies with the
Building Act 2004 requirements for its particular classification and is suitable for occupation.
An Occupation Certificate verifies that the building certifier is satisfied that the building is suitable to
occupy or use in terms of the requirements of the Building Code of Australia. The BCA sets required
standards for the design and construction of various classes of building to protect health, safety
amenity
Certificates Of Compliance
The building certifier when completing an Occupation Certificate (at the end of the project) will
typically require that you provide the following as-built certification from individual contractors
•
•
•
•
•
•
•
•
•
certification that any internal waterproof membranes have been installed in accordance
with the relevant Australian standard (A.S 3740), which typically can only be provided
by a licensed waterproofing contractor
certification that any termite barrier treatment has been installed in accordance with the
relevant Australian standard
structural engineer’s certification of any structural elements
certificate of compliance from the project plumbing contractor together with possible
stormwater installation
certification, which generally relies on a water board inspection
certificate of compliance (with A.S 3000) from the project electrical contractor
certificate of compliance that any smoke detectors have been installed with the relevant
Australian standard
possible certification of compliance for any internal mechanical ventilation
a current survey showing of the property showing that no encroachments have occurred
as result on any additions
If the required site inspections have not been completed or necessary as-built certification is not
provided, the building certifier cannot complete a completion certificate, so it is essential before you
commence the project that you obtain a list of all required certification documents and inspection
requirements from your building certifier and that you ask the relevant contractors to provide these
on completion (within the contract).
You should ensure prior to final payment of any contractor that you obtain copies of the required
certification or certificate of compliance and file these safely to provide to your building certifier
when required.
You should also ensure that you obtain any project warranties from the relevant contractors prior to
final payment (for example waterproofing and termite barrier treatment warranties).
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OIBI Course Question No 30
Who is responsible for arranging with the building certifier to undertake the
various required periodic inspections at critical stages of the works to
enable certification?
(a) ACT Planning & Land Authority
(b) ACT Office of Fair Trading
(c) The owner-builder
(d) Each individual tradesman as their work is completed
OIBI Course Question No 31
What are some of the concealed building elements you should take
photos of (for a project record)?
(a) Neighbours property
(b) Site amenities
(c) Footings (before concrete), floor and wall framing, window
and external door openings, bathroom, ceiling and roof
framing and below ground services
(d) A dilapidation survey
OIBI Course Question No 32
Why is it so important to write down all-important project discussions
or decisions?
(a) Unimportant as most contractors hate paperwork
(b) Always put it in writing is a cardinal rule because it can help clarify
who said what should any disagreement arise
(c) Because it helps the architect\building designer
(d) Not important as a few hand written notes/sketches on serviettes
will do
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Section 10
TERMITES (WHITE ANTS) & PROJECT PLANNING
Termites (white ants)
No property is safe from termites! Termites are the cause of the greatest economic losses of timber
in service in Australia. Independent data compiled by State Forests shows 1 in every 5 homes is
attacked by termites at some stage in its life. Australia’s subterranean termite species (white ants)
are the most destructive timber pests in the world. In fact it can take “as little as 3 months for a
termite colony to severely damage almost all the timber in a home”.
The most destructive species live in large underground nests containing several million timber
destroying insects. The problem arises when a nest matures near your home. Your home provides
natural shelter and a food source for the termites. The gallery system of a single colony may exploit
food sources over as much as one hectare, with individual galleries extending up to 50 metres to
enter your home, where there is a smorgasbord of timber to feast upon. Even concrete slabs may
not act as a barrier; as termites can penetrate through 1mm cracks to gain access to your home.
Termites can build mud tubes to gain access to above ground timbers. In rare cases termites may
create their nest in the cavity wall of the property without making ground contact. In these cases it
may be impossible to determine their presence until extensive timber damage occurs.
The BCA requires that all new additions and dwellings be protected against termite attack and this
can be achieved by a variety of means including termite resistant construction, physical and
chemical barriers. However, the OFT now requires “whole of house protection”, which ensures that
the entire home is protected from termite attack
Owner-builders should always seek professional advice from a licensed pest controller as to the
most appropriate protection for their property relative to its type of construction, which is often best
done during the design process. The pest controller should provide a termite management program
in accord with AS 3660 to minimise the risk of termite attack. A.S 3660 advises that “the provision of
a complete termite barrier will impede and discourage termite entry into a building. It cannot prevent
termite attack. Termites can still bridge or breach barriers but they can be detected more readily
during routine inspections.”
Regular inspections and/or maintenance of the installed termite barrier system is essential and is
typically a minimum conditional warranty requirement of the installation pest control company, so
always check and ensure that you have the required number inspections undertaken before the due
dates fall.
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Project Planning & Scheduling
Correct project programming, planning and scheduling of the various trades and materials is one
of most difficult tasks to achieve and yet fundamentally important to avoid unnecessary delays
and disputes.
You should attempt to produce a construction plan based on the various trade activities for your
project.
This can be achieved by listing the various activities in order of construction, vertically on a sheet
of paper.
For example; provide sediment control, clear site\demolition, site set out, detailed footing
excavation, install drainage services, install reinforcement and concrete and so on right through
to the finishing trades such as painting.
Having done this it is always worth while speaking to the individual contractors discuss the amount
of work that they have in front of them and approximate dates that they can attend your site and
about the length of time necessary to complete their activity and also what other works might need
to have been completed prior to their own.
When you have got the duration of each activity you should note the number of days required
alongside each activity. When completed, this can be converted to a bar chart or construction
program.
A bar chart is a simple timescale diagram showing the timeframe for activities of areas of work
usually as horizontal lines of length scaled to activity duration and showing dependencies of one
activity upon another.
The activities are shown down the left hand side and the time periods shown horizontally by means
of a bar which may be opened or coloured in and the project duration (timescale) often noted
in weeks across the top.
A good bar chart should include the ability to monitor progress which can be done by colouring
in the open activity bars and the various trade dependencies activity to activity. It's also important
to factor in delay contingencies for weather, labour and material delays.
Types of Trades & Scope of Work Considerations
Demolisher/ excavator typically have their labour and plant to undertake the necessary work such
as bulk or detailed footing excavation and demolition and are one of the first contractors on-site.
Typical issues that require you attention are to ensure that all electrical and plumbing services
have been cut off, are there any hazardous materials such asbestos or lead and who is responsible
for the disposal of soil or rubbish. There is now a requirement that such contractors should provide
a written waste management plan prior to undertaking work. Always check that appropriate public
liability insurance and employee workers compensation insurance are in place. They may also
need HWI.
Tip: Before removing any internal walls always consult a structural engineer to determine if any
walls are load bearing (for instance carrying roof or ceiling framing).
If there is heavy dust in the roof it may contain lead or pesticides and professional vacuum removal
should be considered before demolition commences.
Concreter typically are responsible for the installation of formwork, reinforcement for concrete slabs
and footings, plastic vapour barriers beneath slabs and the pouring and finishing of concrete.
When obtaining concreter quotations it is important to establish who is to supply the reinforcement,
plastic vapour barriers and concrete and what surface finishes are required.
It is generally a better idea to request that the concreter supply these materials as they usually
are very experienced in ordering the correct quantity and getting them delivered in a timely manner.
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Typical issues that require addressing prior concrete commencement are whether termite barrier
systems have been installed, reinforcement inspection has been organized and all services have
been installed beneath proposed concrete areas.
Plumber these specialist contractors are typically responsible for the installation of all sewer,
stormwater, gas and water services and for the installation of various taps and PC items.
Often they are responsible for the installation of roof drainage and sometimes metal roofing.
Generally plumbers supply all their own materials with the exception of taps and P.C items
(vanity, toilet, etc).
When obtaining plumbing quotations it is important to establish precisely what taps and P.C
items are to be installed and who is to supply them.
You should always request that the plumbing contractor supply a Certificate of Compliance
for their completed work and include all water board inspections fees within the quotation.
Plumbing installations usually consist of three basic stages;
(1) Drainage ‘rough-in’, which includes stormwater and sewer and is usually completed prior
to installation of concrete floor slabs or floor framing.
(2) Water, waste and gas service rough-in, which is usually completed after walls are installed
and prior to wall finishes being applied.
(3) Fit out completed after all wall and floor finishes (such as tiling) are finished.
If demolition is involved ask the plumber to include disconnection of existing water and gas services,
prior to commencement.
Electrician these specialist contractors are typically responsible for the installation of all electrical
metering, switchboards and cabling, the fit out of all light and power points and connection of any
built in electrical appliance. Many electrical contractors are now licensed to install TV, telephone
& data cabling.
Most contractors allow for all labour, plant, cabling and minor fitments such as power points
and light switches.
Prior to obtaining electrical contractor quotations it is important to clearly establish all of your
electrical needs including number, location and type power points, light switches, dimmers, and light
fittings including garden also any TV, telephone, Hi Fi and data cabling needs and draw these out
on a architectural plan (called and electrical layout diagram) so that you know precisely where they
are required.
Some lighting shops now provide design assistance for lighting layouts and once done will provide
a quotation to supply these fitments. Determining the power requirements of any electrical oven is
also important.
Electrical installations usually consist of two basic stages;
(1) Cable rough-in which is usually completed after floor\ wall framing and roof are installed
and prior to wall and floor finishes installation. This is usually the last opportunity to get
your wiring needs done prior to expensive wall finishes.
(2) Fit out completed after all wall and floor finishes (such as tiling) are finished but usually
prior to painting.
If demolition is involved ask the electrician to include disconnection of electrical services, prior
to commencement. It is also worthwhile having them quote on the provision of a suitable safety
circuit protected (RCD) temporary power board and lighting.
New rules apply to locating light switches and power point within bathrooms and it is important
that you give your electrician the bathroom plan at the beginning of the job so that he can advise
the most appropriate location.
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Waterproofing contractor; it is always best to use contractors who carry a specific waterproofing
licence.
These contractors typically are responsible for installation of all waterproof membranes within
bathrooms, laundry and external tiled balconies and planter boxes.
Because of the potential damage to the membrane (by subsequent trades) and implications of tile
size and shower types etc, it is often prudent to have the tiling contractor do the waterproofing work.
Prior to obtaining quotations always ask what type of warranty (duration) will be supplied, is the
membrane going above or below the tile bed, whether any flood testing of the finished installation
will be undertaken and that a certificate of compliance (with A.S. 3740 - 2004) is to be supplied
upon completion.
Windows, whether timber or aluminium, are best avoided within a shower area as they are very
difficult to properly waterproof. When providing a set down in the shower recess floor the minimum
set down is 25mm.
Bricklayer typically responsible for laying of brickwork or concrete block work, inclusive of sub floor
vents, weep holes, sill and cavity flashings. Most bricklayers usually only supply labour, some low
height scaffold and sand /cement, within their quotations. Quotes are typically done on a $ per
thousand bricks laid basis.
Bricklayers do not include acid cleaning of brickwork upon completion unless specifically asked.
Prior to obtaining bricklaying contractor quotations it is important to establish how many bricks,
flashings, brick ties and damp proof courses and sub floor vents will be required.
Whether any specialist scaffold or hoisting equipment is required and who responsible for
the supply?
What type of brick is to be used and whether any cement bagging is required?
Brickwork is usually completed after the installation of footings and timber wall frames and windows.
Bricklayers are usually responsible for the installation of brick ties.
When having brickwork done it is always important to check for the adequate provision of the
following; flashings, damp proof courses, sub floor vents, brick ties and weep hole provision.
When building cavity wall construction always check that the cavities have been cleared of all
cement debris that may be bridging the cavity. These can inspected from above using a torch.
Carpenter typically responsible for installation of timber floor, wall and roof framing, timber
flooring and fit out including installation including skirtings, architraves and doors. Carpenters often
specialize in either framing based or fit out type work, so it is always best to ask first depending
on what you require.
Most carpenters usually only supply labour, all necessary plant plus and minor fixings, but many
will supply materials if asked.
It is best to try and get a fixed price quote, which requires a clear description of what is to be done
together with an hourly rate for those items that may not be included. Where timber is to be painted
you should ask your carpenter to fill all fixing holes ready for the painter as most do not.
When installing solid timber flooring you should always have the flooring delivered to a dry site and
stored for a minimum of 4 weeks prior to them being laid so that the timber can acclimatize to the
site conditions.
If installing a timber framed floor within a wet area consider using fibre cement sheet flooring
rather than timber based products, which can easily fail should a leak ever develop within the
waterproofing.
External doors should be an external grade solid core type.
Any exposed external timbers should have all sawn edges primed to improve service life and resist
movement.
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Tiler typically responsible for installation of all tiling and grouting and often waterproof membranes.
Tilers usually allow all labour, tile bed materials, grout and fixing adhesives and equipment but not
the tiles, however many will supply materials if asked.
It is best to try and get a fixed price quote, which requires a clear description of what is to be done
(e.g. the area of tiles including skirtings and splash backs) plus a description of what tile is to be
used (e.g. small glass mosaic or large vitrified tiles).
You should also get an hourly rate for those items that may not be included.
It is always best to avoid tiles that are larger than 200mm square within shower areas as it is difficult
to get adequate floor falls.
Tile floor/ wall joints and vertical corner joints ideally should be sealant filled to allow for movement.
If you require a flush floor transition into a bathroom you will need to ensure that there is a minimum
50-60mm set down in the floor whether it is timber framed or concrete and this needs to be done
before the tiler starts.
Shower areas incorporating frameless shower screens or a set down floor should have a minimum
25mm set down within the floor. You should always test the finished shower area by turning on the
shower and closing the door for 5 minutes. If after turning the water off water remains ponding on
the floor (say 15mins after) then the floor is unlikely to have adequate falls and should be rejected.
Tiling is usually completed after the installation of water proof membranes and before fit out
of sanitary ware and shower screens. Built in baths need to be installed before tiling and should
be adequately protected before tiling commences. Ceilings and windows normally should
be installed before tiling.
Plasterer there are essentially two types of plasterers; wet plasterers who install cement render and
set plaster and dry plasterers who install gypsum plaster wall linings (e.g. plasterboard
or ‘gyprock’).
Plasterers are one of the last trades and are normally called in when all walls and services have
been installed. Most plastering contractors typically include all labour, equipment and materials
within their quotations.
Wet Plasterers it is best to try and get a fixed price quote, which requires a clear description
of what is to be done (e.g. the area of plastering) plus a description of what plaster is to be used
(e.g. cement render or set plaster finish).
You should also require that they be responsible for clean up of all self generated rubbish.
Dry Plasterers again try and get a fixed price quote, which requires a clear description of what
is to be done (e.g. the area of plastering) plus a description of what type plasterboard and cornices
are to be used.
Manufacturers make water resistant type gypsum plaster which ideally should be used in all wet
areas, acoustic and many other types so it is worth investigating (e.g. http://www.csr.com.au).
If you have timber framed walls around a high noise generating area, such as a laundry, consider
asking the plasterer to include installation of acoustic insulation.
Thermal insulation of external timber framed walls should also be considered.
When renovating an older home with say aged wall plaster you should consider installing gypsum
plaster over the top of these walls as it is an economical method which results in very good finish
and resists minor movement cracking.
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Painter; the purpose of this trade is obvious and is often the source of many consumer complaints.
Painters normally include all labour, equipment and materials but the differences in what has been
allowed for, such as surface preparation and the quality of materials used, can be large.
When obtaining painting quotes (particularly for older homes) it is essential that you get a clear
description of the amount of preparation work allowed for (e.g. dent filling and paint removal) the
type of paint to be used (E.g. penetrating sealer binder on say kalsomine based walls), the number
of coats allowed for.
Another serious consideration, in pre 1970s homes is the possible existence of lead based paint.
There are at least 3.5 million homes in Australia with lead based paint and it is not possible
to identify it by its "look".
When lead paint is sanded, scraped, heat torched or is peeling it creates a dangerous lead dust
that is easily inhaled or swallowed and the cost of decontamination can be enormous.
It is therefore always worthwhile having the existing paint tested for the presence of lead before
obtaining quotes and getting advice on the best way to manage it (suggest http://www.lead.org.au).
Request that the top and bottom edges of all timber doors are seal painted in accordance with
manufacturers warranty requirements.
OIBI Advisory Note No 6 - Electrical
•
Where can I get answers on other frequently asked electrical
questions for free?
•
Where can I get answers to specific electrical questions
on the electrical standard?
•
Where can I go to get an electrical layout diagram including
for garden lighting and see pictures of lights on line?
•
What are the Important Tips on electrical installations
and saving money?
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OIBI Course Question No 33
What important activity/s should be undertaken to limit termite activity
in your property after a termite barrier system has been installed?
(a) Nothing the termite barrier system does everything
(b) Ensure that you pay the pest controller for the installation
(c) Regular inspections and maintenance by the installation pest
control company/ applicator
(d) Ensure slab edges are always exposed.
OIBI Course Question No 34
What delay contingencies should also be factored into any project
construction program?
(a) Contractors turning up late
(b) Inclement weather, labour and material delays
(c) Council inspections
(d) None of the above
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Section 11
BUILDING CODE & AUSTRALIAN STANDARDS
Building Code Of Australia (BCA)
1996 Vol 2 applies to Class 1 (single occupancy) & Class 10 (dual
occupancy) Residential Buildings;
The BCA is the national building bible and is a uniform set of technical
requirements and referenced standards for the design and construction
of buildings and structures throughout Australia.
The basic objective of the BCA is to ensure the maintenance of uniform,
national and acceptable standards of structural sufficiency, fire safety,
health and amenity for the benefit of the community.
The BCA is overseen by the Australian Building Codes Board (ABCB)
and references over No 150 Australian Standards covering such things
as residential waterproofing, electrical installations, termite barriers
to name a few. The BCA gets updated at least annually and it is
a complex document for a lay person to readily understand.
The BCA can be purchased from the ABCB and Standards Association
of Australia.
Specific queries regarding BCA interpretations can be taken up with
ABCB via emailing office or BCA
Australian Standards (A.S)
A voluntary national standard code or specification which define the
minimum requirements of related work. When a particular standard
is referenced by the BCA it becomes mandatory and there are over
150 Standards referenced by the BCA. Standards tend to get revised
on average every 3-4 years.
Australian Standards are published by the Standards Association of
Australia
For a full listing of all available Standards for residential construction
The BCA (in CD ROM form) cost some $220 and generally each standard
is more than $30 and can be ordered through website 1 or website 2
Alternately free copies of both are generally available at TAFE and
Council libraries.
Whilst the BCA and Australian Standards set minimum acceptable standards for the design and
construction of buildings they do not generally cover the quality of construction.
Before an Occupation Certificate can be issued the Building Act requires that the certifier be
satisfied that, among other things, the building is suitable for occupation or use in accordance with
its classification under the BCA.
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OIBI Course Question No 35
What is the Building Code Of Australia (BCA)?
(a) A set of Australian Standards
(b) A waterproofing code
(c) A uniform set of technical requirements and referenced standards
for the design and construction of buildings and structures
throughout Australia
(d) A set of technical requirements for the design and construction
of buildings and structures in ACT
OIBI Course Question No 36
What are the Australian Standards?
(a) A set of documents for building
(b) A voluntary national standard code or specification, which define
the minimum requirements of related work
(c) A uniform set of technical requirements and referenced standards
for the design and construction of buildings and structures
throughout Australia
(d) A set of Standards put out by the ACTPLA for residential building
OIBI Course Question No 37
What don’t the BCA and Australian standards generally cover?
(a) The maintenance of uniform, national and acceptable standards of
structural sufficiency
(b) Fire safety, health and amenity
(c) The quality of construction
(d) Technical requirements for the design and construction of buildings
and structures in ACT
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Section 12
BUILDING DISPUTES
How do you avoid disputes when building or renovating
Building is a highly expensive and complex process involving multiple trades and technical matters
which are often beyond the comprehension of lay people. Building works are constantly subject to
delays.
Disputes can be avoided or at least minimized if you understand what you want, what you are
getting, adequate contract documents and contracts are in place, proper records are kept and
communication between you and your contractors is good.
Always discuss any concerns or problems you have with the contractor first.
If you have no success or if you think that the problem is serious then you should put your concerns
in writing to the contractor advising what the problem is, what you expect to be done and by what
date.
ACT Planning & Land Authority generally will not become involved in building disputes unless there
is a complaint about a licensee who has failed to comply with a legislative requirement.
In these cases complainants are required to make a written complaint to the registrar in accordance
with Part 11 of the Construction Occupations (Licensing) Act 2004.
ACT Planning & Land Authority will then investigate the complaint to see if a disciplinary action
against the licensee is necessary.
For owner-builders having disputes with non-licensed trades, ACT Planning & Land Authority
recommend that you contact ACT Office of Fair Trading and their complaint submission process is
shown over page
Alternatively ACT Planning & Land Authority suggest the Conflict Resolution Service
General advice regarding disputes is;
(1)
Firstly discuss what you believe the problem is with the licensee or tradesperson and
resolve between the parties if at all possible.
(2)
Failing this seek assistance in identifying and quantifying what the problem is by engaging
an independent expert. If this establishes that a licensee or tradesperson has failed to
comply with a legislative or technical requirement then write to them and present the expert
advice to them with a demand that the work be rectified within a reasonable timeframe.
(3)
Failing this, for licensee's, a complaint to the registrar including all documented evidence
from expert and communication with the licensee, in addition to this and also for nonlicensed parties there may be a need to seek recourse through the court system. Small
claims court will normally handle matters up to $10,000.
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WHAT TO DO IF YOU HAVE A COMPLAINT
AGAINST A BUSINESS OR TRADER
(1)
Identify the exact nature of the problem.
(2)
Find any copies of receipts, warranties and other documentation relating to the purchase and/or goods or
services which are the cause of the complaint.
(3)
Contact the business as soon as you have a problem - don't delay!
(4)
Explain the problem calmly and in as much detail as possible. Tell the business how you would like the problem
solved.
(5)
Remember, it is important to give the business time to look into the problem and get back to you.
(6)
If you are not satisfied with the way your complaint was handled, you may want to write to the appropriate
person within the business (such as the manager). If you decide to write a letter of complaint to a business, or
to a complaint handling organisation (such as Fair Trading), there are a number of things you need to do:
- include your name and contact details
- include the date and place where the problem occurred
- describe what happened, without getting lost in minor details
- explain what action you have already taken to fix the problem
- ask for a response to your letter within a certain time frame
- end your letter with words such as "I look forward to your response"
- sign and date the letter.
- remember to attach a copy of any other letters you have written about the problem, as well as copies of other
relevant documentation
- keep a dated copy of any letters you send.
(7)
If your complaint has been considered fully and it is not resolved to your satisfaction, your next step is to
telephone the ACT Office of Fair Trading or an external complaint handling body such as the
Telecommunications Ombudsman (click here for related links).
(8)
It is important to note sometimes there are complaints which dispute handling bodies have no power to
investigate.
(9)
Lodge an official complaint with the ACT Office of Fair Trading.
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Summary Tips on Avoiding Building Disputes
Have Council-approved project documentation that comprehensively covers the proposed works
including the required quality.
When renovating an older home get a pre-renovation building survey report done and incorporate
essential repairs into the proposed works before getting contractors to quote.
Adequately research suitable contractors and consider employing an architect or other qualified
person to act as the ‘superintendent’ and check their insurances.
If renovating seriously consider renting elsewhere as it can be a relationship saver and reduce
possible threats to your health through exposure to dusts, lead based paints and VOC’s.
Seek professional advice in preparing a contract, which should include a retention sum, a defects’
liability period as well as linking practical completion to the final payment where appropriate.
Carefully check contractor’s proposed schedule of progress claims before signing the contract and
do not pay more than the maximum allowable deposit. Ensure contractors have completed the work
they have claimed for before paying.
Get a project/site diary and keep proper written records of all daily tasks including discussions and
decisions with contractors plus items and materials which are needed. Keep a photographic record
of your project, in particular concealed building elements.
At the outset ask contractors to submit detailed breakdown of costs for each variation as they occur,
in writing, before the work is undertaken.
Always try and discuss any problems with the contractor first. If this fails put concerns in writing and
don’t be afraid to call in the experts (building consultants) when required as it may save you a lot of
money and hassles down the track.
At practical completion release the final payment which should include part of the retention sum.
Just before the expiration of the defects’ liability period advise the contractor of any defects or faulty
workmanship in writing. When the contractor has completed all rectification works release the
balance of the retention sum.
OI BI Advisory Note No 4 - Neighbours & Dividing Fences
•
Some 43% of all neighbour disputes are about fences!!
•
What can I do if my neighbour refuses access onto their land?
•
What the law says on dividing fences and who pays for the fence?
•
Fence Building Tips
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OIBI Course Question No 38
What are building projects constantly subject to?
(a) Inspection by Workcover building inspectors
(b) Disputes with ACT Planning & Land Authority
(c) Delays
(d) Coming in under budget
OIBI Course Question No 39
If you are not happy with your contractors work what should you do first?
(a) Make a written complaint to the ACT Planning & Land Authority
(b) Stop payment
(c) Discuss any concerns or problems you have with the contractor
and then follow them up in writing
(d) Call in a building consultant
OIBI Course Question No 40
How can building disputes be minimised?
(a) Understand what you want and what you are getting, by having
adequate contract documents and contracts in place, proper
records are kept and communication between you and your
contractors is good
(b) They cannot as disputes will always arise no matter what you do
(c) By paying the contractor up as quickly as possible after they have
completed their work
(d) Call in ACTPLA at the first sign of trouble
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Hyperlink References
•
Plumbing work
•
Demolition
•
Lease conditions
•
Compliance Mechanisms
•
Australian Institute Of Quantity Surveyors
website
•
Nature strips
•
Rectification order
•
Work Cover
•
Health Protection Service
•
ATO
•
•
ACT Work Cover
2005 NOHSC Code of Practice for the Safe
Removal of Asbestos
•
Occupational Health and Safety Act 1989
•
•
Occupational & Safety Act 1989 Guide
National Code of Practice for the Safe
Removal of Asbestos
•
Workcover requirements
•
Spot check auditing system
•
Building & Construction Industry Handbook
•
HIA
•
Infringement Notices
•
MBA
•
Stormwater pollution in residential areas
•
Standards Association of Australia
•
Tree protection legislation
•
Standards for residential construction
•
Cordell Valuer
•
ACT Office of Fair Trading
•
wizard
•
Sustainable Design Pack
•
ANZ
•
Asbestos
•
National Standards Codes of Practice and
related guidance material
•
HIA shop
•
Australian Building Codes Board
•
Standards Australia
•
General Exemptions
End of OIBI education course text and questions.
Need More Answers???
If you would like further information regarding the ADVISORY TIPS
they are all available plus much more.
You can purchase the complete ADVISORY PACK and PROJECT
BUDGET CALCULATOR on our Web Site
www.oibi.com.au
RevisionV20 -15 Oct 2008
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