Labour only contracts
April 23, 2019
HIA sometimes receives questions from members about labour only contracts for home building projects. Common issues that become apparent from these questions are confusion about the contracts that must be used, whether domestic building insurance is required, and who is named as the builder on the building permit.
The answers to these questions is usually simple. The builder can only do such work if engaged by an owner-builder named on the building permit and the builder must use a major domestic building contract (such as the Small Works Contract) if the value of their work exceeds $10,000 and must provide domestic building insurance for their work if the value exceeds $16,000.
It is difficult to imagine a scenario where a builder can carry out labour only work for an owner without the owner being an owner-builder with a certificate of consent from the VBA and named on the building permit. In this scenario the builder cannot be managing the building project by arranging supplies or other workers and therefore the owner must be doing this work. A builder cannot be named by the building surveyor as the responsible builder on the building permit. This could be licence lending as much of the management and some of the carrying out of the building work is not being carried out by the registered builder doing labour only work.
For further information, please contact HIA Workplace Services on 1300 650 620.