In Victoria it is a requirement to be registered to carry out domestic building work for any contract where the price exceeds $5000 in each case, whether labour or materials or both, unless the work involves re-blocking a home or the demolition or removal of a home. In this case registration is required despite the cost.
This is important to consider as penalties may apply if caught carrying out domestic building work when required to be registered; this may also affect your ability to gain registration at a later date.
But what constitutes domestic building work and how is the requirement to be registered legislated?
Domestic
Building
Work
Domestic building work is defined in the Domestic Building Contracts Act 1995 and the purpose of this legislation is to regulate contracts for the carrying out of domestic building work.
The Act provides a definition of a ‘home’ and also defines which work applies to the Act and which work doesn’t, providing a clear delineation of what work will need to be carried out by a registered domestic builder.
This definition includes the construction of a home and associated work such as supplying fixtures, landscaping, driveways etc and also includes renovations, alterations, extensions and improvements and repairs to a home.
The Act also requires that a builder must not enter into a major domestic building contract or a contract where the cost exceeds $5000 unless registered and under the Building Act 1993 penalties apply for those carrying out work under a major domestic building contract if not registered.
Exemptions from registration
The Building Regulations 2006 provides exemptions for those solely engaged in domestic building work if the work carried out by that person is $5000 or less in each case.
This does not allow ‘contract splitting’ where work is divided under more than one contract to avoid exceeding the $5000 threshold.
The Domestic Building Contracts Act 1995 is clear on this and notes that a series of separate contacts is considered as one for the purpose of that Act.
The Building Regulations 2006 also provide an exemption for builders solely engaged in the construction of Class 10 buildings, but the work cannot be domestic in nature or carried out under a major domestic building contract. The exemption also extends to those constructing masts, poles or aerials and similar class 10b structures.
Finally it is important to note that the requirement for registration is separate to building permit requirements in that work that may not require a building permit will still need to be carried out by a registered builder if the threshold is exceeded.
For further information HIA members can contact HIA’s Building Services staff on 1300 650 620 or hia_technical@hia.com.au.
The above is intended to provide general information in summary form. The contents do not constitute specific advice and should not be relied upon as such. Formal specific advice should be sought by members with respect to particular matters before taking action. ABN 99 004 631 752