Government of Western Australia
Department of Mines, Industry Regulations and Safety
Building your new home
— a checklist
This booklet provides a guide to each stage of building or
renovating your home
This publication is available in alternative formats upon request.
If you require an interpreter, call the Translating and Interpreting
Service (TIS) on 131 450 and ask for connection to the Building
and Energy Division on 1300 489 099.
Disclaimer
The material presented by the Department of Mines, Industry
Regulation and Safety is provided voluntarily as a public service.
The information and advice provided is made available in good
faith and is derived from sources believed to be reliable and
accurate at the time of publication. However the information is
provided solely on the basis that readers will be responsible for
making their own assessment of the matters discussed herein
and are advised to verify all relevant representations,
statements and information.
Contents
What can you afford to build? . ........................................................ 1
Choosing the land ........................................................................... 2
Getting ready to build ...................................................................... 3
Checking your plans ........................................................................ 6
Before you sign the building contract .............................................. 6
Before construction starts . .............................................................. 9
Once construction starts . .............................................................. 10
Moving in ....................................................................................... 12
Furnishing your new home ............................................................ 13
Important information you need to know about being
an owner-builder . .......................................................................... 14
Further assistance ......................................................................... 15
Useful contacts............................................................................... 16
Building your new home is very exciting and there is much to think
about. Use this brochure as a checklist and tick each box as you
go.
Two golden rules
1. Do not sign anything with your builder until you have read all
the small print. If there is anything that you do not understand,
ask for advice from an independent builder, consultant, or
obtain legal advice. Remember once you have signed a
building contract you cannot normally back out if you change
your mind. There is no ‘cooling off’ period.
2. Ensure that everything important is confirmed in writing and
keep a copy.
What can you afford to build?
Have you worked out your total budget including the cost of the
land, land valuation, legal fees, duty, settlement agents’ fees, rates
and taxes (including land tax), site works, building costs, furnishing
costs, landscaping and moving expenses?
Have you checked whether you will qualify for finance? Many banks
and building societies have brochures on the different types of home
loans available. You may wish to consider seeking the services of a
mortgage broker or an independent financial adviser.
Are you eligible for any financial assistance from the Government to
build a new home? Check with the Department of Housing (formerly
Homeswest), Keystart Home Loans, the Department of Finance
- State Revenue (First Home Owner Grant) and Department of
Commerce - Consumer Protection (Home Buyers Assistance
Account).
Is the finance package the most suitable for your needs? Shop
around to ensure you get the best package, and seek independent
advice if you think you need it.
1
Choosing the land
Does the locality you have chosen meet the needs of your family?
Find out about bus and train services, schools, play groups, shops,
doctors, hospitals, dentists, places of worship, etc. Make certain that
any proposed improvements for the area are likely to eventuate.
Have you checked with the developer or at Landgate whether the
land has any encumbrances, easements, proposed resumptions
or restrictive covenants? These appear on the certificate of title. Is
there likely to be any delay in subdivision approvals that might delay
getting a building approval?
Have you checked with the local government whether there are any
future subdivisions, road changes, or any special building conditions
or covenants that apply?
If the block has a strata title, have you checked with the local
government whether there are any special building requirements?
Have you checked with the local government how much the rates
are?
Have you checked with your builder about the block size, shape
and aspect to make sure it will accommodate your planned home?
Consider the desired orientation. Does it suit an energy efficient
design? Are frontages and clearances sufficient to meet local
government planning requirements? Do you need retaining walls?
Have you checked the availability of gas, water, sewerage and
electricity? In new areas, check whether sewerage has been
connected to a main or whether it is collected in a tank near the
block, and emptied by truck at intervals. Check that gas pressures
in the area meet your needs.
Have you checked whether the orientation and access to services
provided will deliver the level of energy and water efficiency that you
require
If there is a dividing fence on the property, check that it is on the
boundary.
2
Are you fully aware of the extent of site works that will be required
for work such as tree removal, levelling, retaining walls, removal
of clay or rocks, extra drainage etc? The cost of site works may be
affected by the house design or soil type and it might be advisable
to obtain a soil report. Download a free copy of the fact sheet ‘Site
Investigations’ from the Department of Mines, Industry Regulation
and Safety (DMIRS) website before buying a block of land or
building a house.
Are you sure the land parcel described on the purchase contract is
the one you viewed? Check the certificate of title with Landgate.
Have you obtained free copies of the publications ‘Buying
vacant land’; Buying property off the plan’ and ‘Sale by offer and
acceptance’ available on the DMIRS Consumer Protection website?
Have you checked whether your local government produces a
brochure to help new home buyers in the area?
Have you read the DMIRS, Consumer Protection free publication
‘Homebuyers’ Survival Guide for WA’ which has tips for building a
home and a useful ‘Homebuyers Glossary’.
Getting ready to build
Have you developed a simple filing system to keep a proper track
of events? There is always a lot of paperwork involved in building a
home, particularly with house and land packages.
Have you visited a few display homes by project builders and also
individual homes built by non-project builders so that you really
understand the different options? Seek clarification about special
offers.
Are you happy with the type and dimensions of the materials to be
used, for example, the thickness of the floor slab, type of bricks to
the inside walls, roof framing, roof tiles, wall plaster or plasterboard
finish? Ask an independent expert for an opinion.
If you are buying a display home, have you checked that the
model you are buying includes all the features you are expecting?
Remember to check the contract and specifications.
3
Do you fully understand what is and what is not included in the
price? Get everything in writing, including these types of features:
-- paths and driveways
-- crossover
-- carport floor
-- garage doors
-- fencing
-- retaining walls
-- hot water service (including details of type and size)
-- gas supply
-- light fittings
-- quantity and location of power
-- points
-- television antenna and outlet
-- garden taps
-- window locks
-- flyscreens
-- roof insulation
-- vanity cupboards
-- shelving to cupboards and robes
-- wall painting
-- floor tiling (including the laundry)
-- paving
-- landscaping
Are all of your chosen materials readily available? Find out when
orders for ceramic tiles are placed and whether the retailer sets
them aside for you.
If the plans were prepared to your instructions, are you certain that
no copyright laws have been infringed by you having used any part
of someone else’s design? For further information download a copy
of the Australian Copyright Council’s ‘House plans and copyright’
information sheet from [Link] or call the Australian
Copyright Council on (02) 9318 1788.
4
Have you checked out other work your builder has done? Ask
previous customers if they were happy with both the service
received and also the quality of their new home.
Is the person who is to do the building work registered? To check if
your builder is registered go to the DMIRS website and search the
register of builders.
If owner-building have you obtained an owner-builder approval?
For further information about becoming an owner-builder download
a copy of the free fact sheet ‘Becoming an Owner-builder’ from the
DMIRS website.
Have you considered your options for termite prevention treatment?
Download a copy of the fact sheet ‘Termites and Your Home’ from
the DMIRS website.
Has your builder asked you to sign a document yet or pay any
deposit? First, check the document very carefully. Do not accept
any statement by the salesperson that you can change your mind
later without penalty, unless this is clearly written on the document
and is signed by the salesperson. Under the Australian Consumer
Law, misleading or deceptive conduct by a business is unlawful,
however if you make sure that any agreement you have with a
salesperson is clearly written on the document and signed by the
salesperson, you can avoid possible problems later down the track.
Download a copy of the fact sheet ’Understanding the ‘Preparation
of Plans Agreement’ and the ‘Preliminary Work Contract’ from the
DMIRS website.
Are you certain the design is
within your budget?
5
Checking your plans
Have you checked all the plans and specifications thoroughly?
Make sure you fully understand the plans and all of the symbols
used. If plans are drawn up in advance of a building contract, check
with a building surveyor or the local government that they will be
approved without major amendments.
If you selected from a display home, have you taken the plans along
and checked the features and the measurements of rooms and
fixtures installed?
Have any changes or any extras that may have been offered or
agreed to by your builder’s sales consultant been included on the
plans or in the specifications?
Have all of your selected materials and design changes been
included in the drawings and/or specifications? Variations made
after the contract is signed may incur an extra fee. Are the locations
of power points, taps, light fittings, gas and TV fittings exactly as
you require?
Have you checked the total cost of any changes you have made to
the original plans?
Are you still certain that you are able to meet the total financial
commitment?
Before you sign the building contract
Have you read, checked and understood all of the contract
documents thoroughly? Insist on the use of one of the recognised
form of building contract, such as those published by the Housing
Industry Association and the Master Builders’ Association. In
addition the contract documents usually include a ‘Schedule of
Particulars’ or an Appendix, Plans and a Specification. If you don’t
understand any part of the documents, ask questions and seek your
own expert or legal advice. Make sure that you understand what
your contractual obligations are, as well as your builder’s. If you
want anything changed, this is the time to do it.
6
Have you checked to ensure the contract is not ‘Cost Plus’? If you
are contemplating signing a ‘Cost Plus’ contract, you should be fully
aware of the consequences. Check with an independent consultant
or builder to explain it to you or seek your own legal advice
regarding a cost plus contract.
Does the contract require the release of progress payments at
various stages of construction and, if so, are the terms satisfactory
to you and to your finance provider?
Do you intend carrying out any particular construction stage
yourself? If so, have you checked the contract conditions in respect
to:
• time delays resulting from your involvement in construction;
• effects on the overall warranty of the building; and
• whether you need to obtain separate owner-builder approval for
any of the work that you perform?
Do you intend to provide any materials for inclusion in your home,
such as spa, kitchen equipment or light fittings? If so, have you
checked whether your builder’s insurance covers the loss or theft of
these materials from the site or damage after installation?
Check that piping, cabling etc is of sufficient rating/capacity to run
the appliances, as part of an integrated system, before the house is
built.
Have you checked the dates or time periods that the fixed contract
time is scheduled to start and finish?
Have you established what your rights and your builders’ rights are
if your builder should over-run the original contract construction
time?
Are there any allowances for ‘Provisional Sums’ and ‘Prime Cost
Sums’ and, if so, do you understand the meanings of the terms?
Do you know how the amounts that you will actually pay to your
builder will be calculated? If you are uncertain, ask your builder or
an independent consultant or builder to explain it to you.
7
Has your builder included in the contract the price for fixing the
items covered by ‘Prime Cost Sums’, not just for supplying them?
For tiles and tiling, check how many square metres are included and
ensure this is stated in the contract documents.
Are you unhappy with anything that is included in the contract
documents? If so, ask for changes to be made. Any changes must
be in writing and signed by both parties.
Are the contract documents fully completed? There should be no
blank spaces and the contract should include everything that has
been discussed. Check the Schedule
of Particulars very carefully and make
certain that nothing is left blank.
Download a free copy of the fact
sheet ‘Home Building - Home Building
Contracts Act 1991’ from the DMIRS
website.
Have you read the Notice for the
Home Owner which is required by
law (the Home Building Contracts
Act 1991) to be handed to you by
your builder when the value of the
building work is between $7,500
and $500,000? If you still have any
questions about your rights and your
obligations under this Act, seek your own independent legal advice
before you sign the building contract or pay any deposit.
Has your builder provided you with a copy of the Home Indemnity
Insurance policy covering the proposed building work before you
pay the deposit. For more information about this type of insurance
download a free copy of the fact sheet ‘Home Indemnity Insurance’
from the DMIRS website.
What deposit have you been asked to pay? The maximum deposit
is 6.5 per cent of the contract sum if the value of the home building
contract is between $7,500 and $500,000.
Has confirmation of Government or other financial assistance been
received (if applicable)?
8
Before construction starts
Has the contract been signed by both parties?
Has your builder supplied you with a complete, signed set of the
contract documents? The following should be provided to you as
soon as possible after the contract has been signed:
• The contract together with a Schedule of Particulars or an
Appendix;
• complete set of plans;
• written specification of workmanship and materials; and
• certificate of home indemnity insurance.
Have you provided proof of your ownership of the land to your
builder?
Has local government and Water Corporation approval been
received by your builder?
Has your builder advised if the work requires your neighbour’s
consent in circumstances where it may encroach or affect adjoining
land?
Has the developer’s approval (if applicable), been received by your
builder?
Has confirmation of finance approval been received? Your builder
may request a copy of the finance approval.
Has your builder invited you to attend a ‘pre-start’ meeting? At that
meeting you will be asked to make a number of important decisions
about the types of materials and fittings and about colours. If you
must make any last minute changes, make them now and not
after construction starts unless the contract has been amended
appropriately.
Has your builder provided you with a copy of the ‘Home Indemnity
Insurance’ certificate?
Have you checked if your builder also has insurance for flood, fire
and theft as well as ‘Public Liability’ insurance for injury to persons.
9
Once construction starts
Have you been given the name and phone number of your contact
person in your builder’s office? If practical you should try to deal
only with that person.
Have you arranged to check the work on site regularly yourself?
Regular visits to the site are essential but make sure you do not
inconvenience any of the tradespeople. Take a spirit level and a
tape measure with you and make certain your builder is working to
the most up-to-date plans. Check that the colours of materials used
are as selected, including bricks and paving. Building contractors
are obliged to construct your dwelling in accordance with the plans,
specifications and the National Construction Code, however you
may wish to verify that they done so for yourself. As mandatory
inspections of building work are not required in Western Australia,
it may be worthwhile for you to engage the services of an
independent consultant or registered builder. In addition to any
such inspections you may arrange to have done, it's recommended
you make regular visits to the building site.
Have you received a claim from your builder for a progress
payment? Carefully check that the work is properly completed up
to the appropriate stage.
Have you arranged to take photographs of the work at regular
intervals, particularly any part of the work that may be of concern to
you?
Have you purchased a diary to record all of the day-to-day
happenings, including discussions with your builder? You should
record the time and date of all telephone conversations as well
as the name of the person you spoke to and what was discussed.
Discuss with your builder any queries or problems you may have
about delays, quality of workmanship, or any other issues as
soon as they arise. For anything other than a very minor problem,
consider confirming your views in writing to your builder as this may
assist you with clarifying the issue at a later time. If you are unable
to resolve the problem, download a free copy of the ‘Building
Complaint Resolution’ guide from the DMIRS website.
10
Has your builder advised you that the home has reached “practical
completion”? Check every aspect to ensure you are satisfied and
the home is habitable. You can then hand over the final payment
(even if there are a few minor outstanding items, but make certain
you itemise them in writing to your builder).
Are you aware that, for your protection, you should deal only with
your builder and builder’s supervisor on-site and not the
tradespeople on-site?
Remember that you have made a financial commitment to your
builder to pay in accordance with the conditions of the contract prior
to obtaining your house keys. Note that your builder has a legal
responsibility to ensure that the building work is carried out in a proper
and proficient manner.
The builder is liable to make good, without additional cost, defects
in the building work notified in writing within four months from practical
completion.
The DMIRS, Building and Energy Division is able to assist with
disputes regarding building services and home building work
contracts. Building services complaints need to be made within six
years from practical completion. In most cases home building work
contract complaints can be lodged up to three years from when the
complaint arose.
11
Moving in
Have you remembered to:
• rrange connection of your telephone (you can organise for
a
cabling to be carried out during construction), gas and electricity;
• advise the Water Corporation;
• advise your local government;
• notify the post office and have your mail redirected;
• get the address on your vehicle and drivers licences changed;
• arrange for house and contents insurance;
• notify the electoral office; and
• otify your bank or building society, employer, Medicare,
n
insurance companies, solicitor, accountant, professional
associations, clubs, schools, library.
Document any minor defects
and arrange to provide a list of
these to your builder, before the
expiry of 4 months from practical
completion.
12
Furnishing your new home
Have you checked that all furniture and appliances you intend
to buy will fit properly into your new home and will pass through
doorways and passages?
Have you checked that the size and colour of everything is right,
using a tape measure and colour swatches of fabric?
Have you checked the workmanship on all furniture, for example
strong joints, smooth opening drawers and doors, etc?
Have you checked the availability of spare parts for appliances and
considered ease of cleaning and maintenance?
Have you considered the following when buying carpets or vinyl:
• shop around to compare prices and quality;
• obtain at least two itemised and signed quotes;
• check that the price includes laying, doorstrips, etc;
• check the deposit required;
• determine the type of underlay (if any);
• determine the position of joins;
• obtain the name of the salesperson with whom you are dealing;
• re-check all measurements (your own and the store’s); and
• check that concrete floors are dry enough to lay the coverings.
If you intend to hire trades people to do ‘associated’ home building
work such as laying wooden flooring or installing a swimming pool,
have you read the free information booklet ‘Having building work
done’ available from the DMIRS website.
13
Important information you need to know about being an owner-
builder
Before deciding to undertake building work yourself (instead of
employing a registered builder), carefully consider all of the possible
implications in becoming an owner-builder.
Owner-builder approval from the DMIRS is required before applying
to the local government for a building permit.
Owner-builder requirements are extensive and include displaying a
sign during construction and ensuring all building work complies with
building standards as well as safety laws and regulations.
Owner-builders are restricted from building again as an owner-builder
for a period of six years. In certain circumstances an exemption
may be granted where the owner-builder can demonstrate how an
unforeseeable change in their circumstances has occurred and
demonstrate hardship will occur if an exemption is not granted.
For further information on becoming an owner-builder download a
free copy of the publication ‘Becoming an owner-builder’ from the
DMIRS website.
Owner-builders require approval
from DMIRS before applying to
the local government for a
building permit.
14
Owner-builders have obligations under the Home Building Contracts
Act 1991 to take out a home indemnity insurance policy before entering
into a contract to sell their property to cover the prospective purchaser
for any completion or rectification of building work where the builder
dies, disappears or becomes insolvent.
The home indemnity insurance policy must cover a seven-year period
from the date of issue of the building permit. For more information
download a copy of the information guide ‘Home Indemnity Insurance’
from the DMIRS website.
Owner-builders should be aware that they may be prosecuted under
the Act should they fail to meet any of the above requirements.
Further assistance
Despite the best intentions, there are times when disputes or
complaints may arise over building standards, workmanship, building
contracts, dividing fences and building work that may affect other land
such as a neighbour’s property.
At all times you should try to resolve any problems or disputes with
your builder in the first instance. Document what you have done to
try to resolve matters and keep copies of all correspondence. Staff at
the DMIRS can provide information or refer you to the appropriate
authority if you have disputes related to building or renovation work.
Please note that in the interests of competitive trading, staff cannot
recommend the services of a particular builder or contractor.
15
Useful contacts
1300 300 630 Australian Securities and Investments
Commission
To check whether a company is registered visit
[Link]
1300 489 099 Department of Mines, Industry Regulation and
Safety – Building and Energy
Advice and assistance about building your home,
dispute resolution and to find a registered builder,
building surveyor, plumber or painter visit
[Link]
1300 30 40 54 Department of Mines, Industry Regulation
and Safety – Consumer Protection
To check a trade or business name is
registered visit [Link]
1902 973 555 Housing Industry Association (HIA) Consumer
Hotline
For advice on contract, legal obligations,
technical queries and concerns (Note: calls
charged at $2.75 per minute) or visit
[Link]
9476 9800 Master Builders’ Association
1300 550 262 For advice on whether a builder is a member of
(Country) the association and general advice to member’s
clients on building a new home visit
[Link]
16
Building and Energy
303 Sevenoaks Street
CANNINGTON WA 6107
Locked Bag 14
Cloisters Square WA 6850
Telephone: 1300 489 099
Facsimile: (08) 6251 1501
Email: bcinfo@[Link]
Website: [Link]/building-commission
17
