I am often asked how to put a value on owner builder works for the purpose of making an application to the relevant authority for the issue of an owner builder permit or licence.

Each of the states and territories have varying requirements on the value of works which require the applicant to hold an owner builder permit and in some cases determines whether or not an approved course is required.

Following is a recent question and my subsequent answer to a visitor to our website.

“Hello RIck, 

Please explain how a value of $11,000 or more is substantiated – see BSA statement below: 

 ”It is a requirement under the Queensland Building Services Authority Act 1991 (QBSA Act) that if you wish to

perform or coordinate domestic building work on your property for a single project of a value of $11,000 or more you must hold an owner builder permit.”

In other words, who will know if I submit a building application to the council, without a Owner Builder Permit, and the value turns out to be $12,000?

 I need to determine whether I need untertake an Owner Builder course.”

Hi Scott,

The value of the works are based on an estimation of what would be fair and reasonable costs for labour and materials if it were completed by a licensed contractor.

 One of the ways they would determine this is through applying an appropriate square meter rate that would be typical for the type of project your are constructing.

 For example in the greater Brisbane region, it might be reasonable to estimate that a four bedroom home, brick veneer, tile and of traditional construction methods and average standard of finishes and fittings would cost $1250.00 per square meter for a builder to complete.

 So I guess they could, if they got serious about it, put the project out to tender to determine the value of the works.

 Keep in mind that extensions and renovations are generally more costly than new construction and that pergolas, decks, sheds etc may come down to $1000.00 per square meter or less depending on the type of construction.

 Hope this helps.

So, you see the authorities will check on your estimate of the value of works when you submit your plans for approval.

Remember, always err on the side of caution, you do not want to get off on the wrong foot with your council or local authority.

Best Regards and Happy Building

Rick

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