Owner builder vs licensed builder in QLD
Owner building can save you the builder’s margin and give you full control of your project, but you take on the builder’s job and the builder’s risk. You manage the trades, the approvals, the budget and site safety, and you lose access to the Queensland Home Warranty Scheme, which protects homeowners who hire a licensed builder.
Neither option is right for everyone. Here’s how they compare, so you can work out which suits your project, your budget and your time.
At a glance
| Owner builder | Licensed builder | |
|---|---|---|
| Who manages the job | You | The builder |
| Permit needed | Owner builder permit (work over $11,000) | No, the builder’s licence covers it |
| Course needed | QBCC-approved owner builder course | No |
| Builder’s margin | None | Included in the contract price |
| Queensland Home Warranty Scheme | Not available | Available for eligible work |
| Fixed-price contract | No, you carry cost overruns | Usually, subject to variations |
| Time commitment | High | Low |
| Selling within 6 years | Written notice to buyers required | No owner builder notice |
What owner building actually involves
As an owner builder, you’re the head contractor. That means you:
- get your own approvals, including working with a building certifier
- find, quote, contract and schedule every trade
- order and coordinate materials
- supervise the work and check its quality
- keep the site safe for trades, visitors and your family
- pay trades on time and manage the budget
- deal with defects, delays and disputes
Many owner builders also do some of the hands-on work themselves, such as carpentry, painting or landscaping. Specialist work like plumbing, gasfitting and electrical work must still be done by licensed trades.
The QBCC requires most owner builders to complete an approved owner builder course before applying for a permit, because the job is more than most people expect.
The case for owner building
You can save money
A builder charges for running the job, on top of the cost of trades and materials. As an owner builder, you do that work yourself, so you keep that margin. If you do some of the physical work yourself, you can save on labour too.
How much you save depends on the project and how well you manage it. Mistakes, delays and rework eat into savings quickly, so the saving is never guaranteed.
You have full control
You choose every trade, every material and every finish, and you can make changes as you go without negotiating contract variations with a builder.
It suits some projects very well
Owner building is often a good fit for projects that are simple, where you have building experience or trade contacts, or where you have time to be on site. Sheds, garages, decks, pools and straightforward extensions are common owner builder projects.
The case for a licensed builder
Home warranty insurance
When you sign a contract with a QBCC-licensed builder for eligible residential work, you’re generally covered by the Queensland Home Warranty Scheme. It can protect you if the builder doesn’t finish the work for reasons that aren’t your fault, doesn’t fix defective work, or if there’s damage from subsidence or settlement.
Owner builders can’t access the scheme. If something goes wrong with work done under your permit, you deal with it yourself, usually by chasing the trade who did the work.
One point of responsibility
With a builder, one licensed person is responsible for the whole job, including the quality of the trades’ work, coordination and the program. As an owner builder, each trade is responsible only for their own work, and the gaps between trades are yours to manage.
Price certainty
Most residential building contracts set a contract price, subject to variations and allowances. As an owner builder, cost overruns from delays, price increases or mistakes come straight out of your pocket.
Time
Running a building project is close to a full-time job at times. Trades need to be booked in the right order, inspections arranged, deliveries checked and problems sorted out on the day. If you work full-time, think carefully about whether you can be available when the project needs you.
Risks owner builders take on
Defects and disputes
You’re responsible for making sure the work is done properly. If a trade’s work is defective, you’ll need to get it fixed through your contract with them, the QBCC dispute resolution service, the Queensland Civil and Administrative Tribunal (QCAT) or legal action.
Paying trades
You must pay trades on time under your contracts. Unpaid payment claims can go to adjudication under the Building Industry Fairness (Security of Payment) Act 2017. Put every contract in writing, and have a lawyer check them.
Site safety
You’re responsible for the health and safety of the trades, visitors and anyone else on site. Construction sites are dangerous, especially for children and visitors who don’t understand the hazards. See do owner builders need a White Card?
Insurance
Because you can’t access home warranty insurance, talk to an insurer about the cover you need during construction, such as contract works and public liability insurance. Your regular home and contents policy may not cover a building site.
Finance
If you’re borrowing to build, check with your lender early. Lenders can have different requirements for owner builder construction loans than for loans to build with a licensed builder.
Selling the property
If you sell within 6 years of finishing the work, you must give buyers a written notice saying the work was done under an owner builder permit and isn’t covered by home warranty insurance. If you don’t, the law assumes you’ve warranted the work was done properly, and you may be liable for defects. Read more about selling an owner-built house in QLD.
A middle ground: finishing a builder’s job
The QBCC lets you get an owner builder permit to finish a new house that a licensed builder has taken to a particular stage, such as lock-up. The builder handles the structure, and you take over the fit-out and finishing. You’ll need a copy of your contract with the builder for your permit application.
Questions to ask yourself
- Do I have the time to be on site and available during the build?
- Do I have building experience, or reliable trades I’ve worked with before?
- Am I comfortable managing contracts, payments and disputes?
- Can I absorb cost overruns if things go wrong?
- Will my lender finance an owner builder project?
- Am I likely to sell within 6 years?
If most of your answers are yes, owner building may suit you. If not, a licensed builder is probably the safer choice, or consider having a builder take the house to lock-up and finishing it yourself.
Frequently asked questions
Is owner building cheaper?
It can be, because you don’t pay a builder’s margin and you can do some of the work yourself. But you carry the risk of delays, mistakes and cost overruns, so the savings aren’t guaranteed.
Can an owner builder get home warranty insurance in QLD?
No. Owner builders can’t access the Queensland Home Warranty Scheme.
Do I still need licensed trades as an owner builder?
Yes. Plumbing, drainage, gasfitting, electrical work and termite management must be done by appropriately licensed trades, and you must use QBCC-licensed contractors for work that requires a licence.
How do I become an owner builder in QLD?
Complete a QBCC-approved owner builder course, then apply to the QBCC for a permit. See our step-by-step guide to getting an owner builder permit in QLD.
Get your White Card before you start
If you’ll be working on site, our face-to-face Queensland White Card course teaches you how to identify and control construction hazards. It takes 4.5 hours, costs $99 and you’ll leave with your White Card on the day.