Australia’s building and construction industry are heavily regulated. Before you commence building or construction work, you must obtain the relevant project documentation. This includes any licenses, registrations, approvals, permits or certificates that you will need to execute the project. The type of documentation required differs between the states and territories, as each state and territory has its own building regulations. However, the general documentation requirements for construction works remain the same across all Australian states and territories. This article outlines the documentation requirements at a general level for a construction project and the consequences of failing to meet these requirements.
What Constitutes ‘Building’ or ‘Construction’ Work?
The nature of your building work, whether commercial or residential, will determine what legislation applies to the project. It is important for you to correctly identify the type of work you are carrying out. The legislation in each State and Territory will cover aspects pertaining to your construction works, such as:
- requirements for the supervision of your workers;
- the coordination between contractors that you must adhere to during the building work;
- the permissibility of certain alterations and renovations that can be made to a building; and
- standard to which you must carry out repairs for remedial works.
Licences & Registrations
The Home Building Act 1989 (NSW) deals with licensing and registration for residential building work in NSW. If you perform residential building work that exceeds the value of $5,000, you must obtain a contractor licence. The value of your residential building project is calculated by adding the total cost of labour and materials. Similarly, a contractor licence is required if you advertise that you carry out residential construction works that exceed $5000.
Significant fines may apply if you carry out residential building work without a licence. If a company carries out residential building work without a licence, it may be fined $110,000. A fine of $22,000 applies if you as an unlicensed construction contractor, perform any residential building work. Furthermore, you could also receive a fine if you contract with an unlicensed person to carry out residential construction works.
Continue reading this article below the formHow Do I Obtain a Licence or Registration?
In NSW, you can apply for either an individual or company contractor licence through Service NSW. See the table below:
| Individual | • PDF Forms: ‘Checklist for Individuals’, ‘Application Form’ and ‘Additional Details Form(s)’. • Proof of identity: you must provide three different forms of identification. These include your driver’s licence or passport, a letter or bill with your current residential address, and a Medicare or ATM card. Check with NSW Fair Trading to make sure you can meet the proof of identity requirement. • One passport-size photograph. • Documentation that meets the qualification requirements (certificates and transcripts from the registered training organisation). • Your referee’s statement (if applicable). • Certificate of eligibility to obtain insurance (if applicable). • Payment of the application fee. |
| Company | • A current Australian identity document, such as a driver’s licence, passport or Medicare card, to verify your identity documents. • Your company’s ABN. • Details of your nominated supervisor, including licence or certificate number, for each category of work being applied for • Payment of the application fee. |
In Victoria, Queensland, Western Australia and the Northern Territory, you will need to download, print and fill out the application form. You should make sure to select the correct form for the intended category of building works you intend to perform. Once you have filled out the form, you then need to mail it to the relevant authority. Alternatively, you could submit your application in person. In South Australia, you can also submit your application by email. In Tasmania and the Australian Capital Territory, you can complete and submit your application online.
Do I Need Development Approval?
Depending on the scale and type of work you are planning to carry out for your particular project, you may need to obtain development approval. In NSW, before you commence any work on your construction project, you will need to obtain development approval. You usually obtain this from the local council. The local council will assess your application based on the potential impacts of the proposed development. For instance, the local council will determine whether your proposed development will:
- generate extra traffic in the area;
- lead to excessive noise being created;
- interfere with the privacy of nearby neighbours; or
- impair the solar access of adjoining properties.
The purpose of the development approval is to:
- assess the development plan and ensure the impacts of the development do not negatively affect the environment;
- ensure the development fits the character of the area;
- provide members of the community with an opportunity to raise any issues; and
- ensure safety.
If your building project requires development approval, you will need to make a formal application via the Service NSW website. You should contact your local council for information on any local requirements.
Upon receiving development approval, you will need to obtain a construction certificate before you can commence work. The construction certificate is an essential construction document that confirms that your proposed work is compliant with the Building Code of Australia. Furthermore, a construction certificate demonstrates that your plans for the work are not inconsistent with the development approval. You can apply for this on the NSW Service website.
Again, the differing states have different processes for obtaining development approvals or planning permits.
When Can I Rely on a Complying Development Certificate?
In certain circumstances, you may not need development approval to start work on your construction project. This applies in instances where your construction project only involves minor developments. These developments must have a minimal impact on the site and surrounding neighbours. Additionally, one to two-storey homes are also generally exempt, meaning you do not have to obtain development approval. Rather, in the cases described above, you may simply need a ‘complying development certificate’ (CDC). If your project only requires a CDC this is quite advantageous as it means a fast-tracked approval process. For instance, small fences and decks are examples of exempt developments that are covered by a CDC.
This guide will help you to understand your corporate governance responsibilities, including the decision-making processes.
Key Takeaways
When it comes to carrying out building and construction work, there are many requirements that must be met. Depending on the nature of your project, the requirements will differ. It is important to check that you hold the correct licence or registration for the type of work you intend to carry out. You also need to make sure that you have obtained the correct development approval or permit for that work. You may well be aware that for larger-scale projects, obtaining development approvals can be a lengthy process. As such, you should check with your local authority if you are unsure about the requirements for obtaining development approval.
If you need help understanding what documentation requirements you need to fulfil for your next construction project, contact our experienced construction lawyers as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 1300 544 755 or visit our membership page.
Frequently Asked Questions
Yes, depending on whether your construction works project is of a residential or commercial nature, this will impact what regulations you have to comply with.
This is not recommended as companies that conduct residential building work while unlicensed can be fined up to $110,000. The penalty is likewise harsh for individuals who carry out residential construction work unlicensed. These individuals may be fined up to $22,000.
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