Owner builder vs licensed builder in Queensland

What a licensed builder gives you

When a QBCC-licensed builder contracts to do the whole job, you are a client. The builder holds the licence, signs the trades, runs the site and answers for the result. For residential work over $3,300 the builder pays a premium into the Queensland Home Warranty Scheme, which protects you against non-completion and defective work. Defects are the builder’s to fix, and a dispute can go to QBCC. When you sell, the buyer inherits that position.

What you take on as an owner builder

With a permit, you are the builder in the eyes of QBCC and the law. QBCC’s list of responsibilities is the job description.

• Get council approval and certifier sign-off before starting, including earthworks, and hold the QBCC permit before any work begins.
• Supervise and coordinate every contractor, maintain quality control and uphold safe work practices under Queensland work health and safety law, including asbestos management.
• Engage only QBCC-licensed contractors for plumbing, drainage, gasfitting and termite management, and a licensed electrician for electrical.
• Put a written agreement in place with each subcontractor covering licence details, scope, standards, timelines and payment terms, and pay within 15 business days of an invoice or as the contract says.
• Display the owner builder sign on site with your permit number.
• Resolve defects and payment disputes with your contractors yourself, through QCAT or adjudication if needed. An unpaid contractor can adjudicate against you.

Insurance and defects

The largest difference is cover. Owner builders are not eligible for the Queensland Home Warranty Scheme, so nothing protects you if your own work is defective, and nothing protects a buyer either. QBCC does not require you to hold insurance, but most owner builders buy contract works and public liability cover, and you must hold WorkCover accident insurance if you employ anyone.

If you sell within six years of finishing, you must give the buyer a written notice with the prescribed warning that the work is not covered by insurance under the QBCC Act. Skip it and the law treats you as having warranted the work. An owner builder administrative advice also sits on the land title for seven years.

Time and cost

The saving is the builder’s margin and supervision fee, plus whatever labour you can do yourself. Against that, budget for the course ($185), the QBCC permit fee ($493.59), your own insurance, and your time. Owner builders without trade contacts often pay retail rather than trade rates for materials and wait longer for subcontractors, who prioritise repeat clients.

You will also be the supervisor, and the permit process itself takes about six to eight weeks from the course to approval before you can start.

When owner building makes sense

It suits people with time, some building knowledge or trade contacts, a straightforward project, and a plan to stay in the home for more than six years. It suits fewer people when the project is complex or structural, when the home will be sold soon after, when the bank requires a licensed builder for the loan, or when you cannot be on site most days.