How To Become An Owner-builder
The Sun Herald
Sunday March 1, 1992
YOU don't need to be a mathematician to work out that some builders would like to retire very early on the proceeds of their jobs.
My initiation into the world of renovation has turned sour after I was pulled through the minefield of quotes and builders' jargon.
The derelict inner-west terrace I bought almost a year ago lies idle as I haggle with builders who want the equivalent of three years' wages for eight weeks' work |
My small budget has left me no option but to investigate owner-building which, the experts tell me, could save thousands of dollars.
Becoming an owner-builder may sound easy and save thousands of dollars but think twice about committing yourself because it's like taking on a full-time job.
Forget trying to juggle hourly appointments and work commitments if you have a bricklayer on the phone complaining that the wrong coloured bricks have been delivered. An owner-builder must make time to inspect the site daily and keep a constant check on budget and work schedule.
Anyone can become an owner-builder as long as you have a legal share in the house and will live in it when the work is completed.
It helps if you have some experience in building, but the essential requirements are patience, determination, realism and plenty of time.
Statistics from the Building Services Corporation reveal almost 25,000 permits were issued in 1990, signalling the large number of people preferring to manage building their own home or extension.
Dieter Mylius from the Sydney Building Information Centre said: "If you want to owner build, carefully consider how you spend your time. Perhaps you would like to do many of the trades as well as co-ordination, thereby keeping total control and saving a lot of money.
"Or perhaps you would prefer largely to subcontract and co-ordinate, which means quicker progress."
Executive director of the Master Builders' Association of NSW, Ray Rocher, warns renovators or home builders should do their homework before committing themselves to an owner-building project.
"Make sure you fully understand all the rules and regulations which govern the building industry so that you don't find yourself liable for big fines or worse."
To become an owner-builder all you need is $30 for a permit from the Building Services Corporation (BSC).
BSC spokesman David Gardner said council plans and proof of ownership must be presented when applying for the permit.
Once you have obtained your permit the Corporation suggests searching for suitable contractors.
The Building Services Corporation Act makes it illegal for a contractor to require a deposit of more than 10 per cent for jobs up to $20,000 in value and five per cent for jobs over that amount.
Before you accept a quote inspect the contractor's work and ask lots of questions.
But remember, to be eligible for the corporation's insurance all contractors must be licensed. Don't forget to carefully plan your budget before embarking on the project.
According to Mr Gardner, owner-builders should plan their project using a bar chart to list all activities and a time frame for completion.
You will need a loan for your new home or extension. To give yourself a head start with the bank manager, submit a copy of your plans, a well-organised schedule of work, budget and present an overall view showing each stage, how much it will cost and completion dates.
Most lenders will demand full-time work on site and an early completion date as they don't want to fund a never ending story.
Remember, that during the project you'll run your life by charts and lists showing the next day's work: phone calls, delivery times, orders for materials, contact with tradespeople and appointments with council.
A little tip-always stay one jump ahead or a minor hiccup can become a major hitch.
CONTRACTS
BEFORE you employ a tradesman the experts recommend that a contract be signed to ensure against unsatisfactory work.
The BSC advises owner-builders to sign contracts with subcontractors for each trade.
Make sure it is in writing, according to Master Builders' Association of NSW executive director Ray Rocher.
He said his association offered a contract which safeguards the owner-builder as well as workers' payments etc.
A Housing Industry Association spokeswoman said contracts available at the HIA were tailored for use between a builder and tradesmen but could be used by owner-builders.
The Royal Institute of Architects is drafting a new contract, which will be available next month.
The Sydney Building Information Centre sells a pad of 50 contracts for $27 at its Surry Hills bookshop.
If all else fails contact your solicitor for advice or to have a contract drawn up.
COURSES
THE Sydney Building Information Centre will start its weekend owner-builder course on March 27.
The course, which costs $355, covers quotes, project management, council requirements, contracts materials and budgets.
Included in the weekend course is a construction program which features foundations, footings, plumbing and draining.
Hudson Timber & Hardware also offers owner-builder seminars and workshops. Call 899-2699.
PROBLEMS
IF YOU have a problem talk to the contractor first. If negotiation fails put your complaint in writing to the contractor, identifying your concerns, and give 30 days for a solution.
If you fail to find a solution contact the Corporation's consumer advice department on (02) 959-1444 before making a formal complaint or lodging a claim to the BSC Insurance.
© 1992 The Sun Herald