Builders License - WA

[MTR]

Anyone got this??

How difficult is it to acquire. Someone mentioned easiest way to get this is through MBA??? Is this so...

We are not interested in building for other people, it would only be our projects 2-4 pa. Do we need a license? Can we go owner/builder, excuse my ignorance as I know zip about this. I suspect need license as something to do with insurance???

I have worked out we could be saving a minimum of $100K+ per development, my DH is looking at this, just interested in finding out more about this.

We have set up a development company where we would pay for project management, we use this now, but it would be great once we have the license as more money into the company and in our pockets. Also it gives another income stream and great for sourcing any future bank loans.

Another thought those margins we talk about, we often mention at least 20% profit, well it means the deals that are border line will now be OK due to builder margins and of course opportunity for much higher returns.

Cheers
MTR

 

[westminster]

You can't owner built for someone else, only for yourself. You then need to keep the property for 7yrs (I think?) or pay for insurance to be covered like you would under a builders warranty.

You do contact the MBA to get advice for your builders ticket and they will advice the best route possible. Some people are able to get one easier if they have a trade background etc but for the rest of us it's a Tafe course to get your ticket.

This is the Tafe course
http://www.central.wa.edu.au/Courses/EngineeringConstructionMining/Pages/W740.aspx?cookieCheck=true

 

[westminster]

Just curious - how did you quanity those $100k savings?

Is the rate for trades that much cheaper for 2-4 projects vs the rate they would give someone for one project?

This is my next step to go to so I'm eager to learn.

Feel free to discuss this privately with me.

 

[perthguy]

You can't owner built for someone else, only for yourself. You then need to keep the property for 7yrs (I think?) or pay for insurance to be covered like you would under a builders warranty.

http://www.buildingcommission.wa.gov.au/consumers/home-indemnity-insurance

http://www.buildingcommission.wa.go...uilders/building-principal-place-of-residence

You do contact the MBA to get advice for your builders ticket and they will advice the best route possible. Some people are able to get one easier if they have a trade background etc but for the rest of us it's a Tafe course to get your ticket.

This is the Tafe course
http://www.central.wa.edu.au/Courses/EngineeringConstructionMining/Pages/W740.aspx?cookieCheck=true

I want to start that Tafe course this year. It looks awesome!

Building Commission of Western Australia will be able to provide info on registration.

http://www.buildingcommission.wa.gov.au/licensing/builders

Looks like there are 2 options: Building Practitioner or Building Contractor

http://www.buildingcommission.wa.gov.au/licensing/builders/practitioner-registration

http://www.buildingcommission.wa.gov.au/licensing/builders/contractor-registration

Building Commission should be able to advice which would suit your circumstances and what the requirements are.

 

[MTR]

Just curious - how did you quanity those $100k savings?

Is the rate for trades that much cheaper for 2-4 projects vs the rate they would give someone for one project?

This is my next step to go to so I'm eager to learn.

Feel free to discuss this privately with me.

Hi Myf

I did not quantify this figure, my accountant did using my recent project, so it could vary greatly.

However the builders I meet up with these days for my projects are all young guns, living in mansions and driving European cars, I think these guys are doing just fine, perhaps making more than $100K, one builder has 11 projects on the go pa and not taking on anymore work at the moment.

 

[MTR]

You can't owner built for someone else, only for yourself. You then need to keep the property for 7yrs (I think?) or pay for insurance to be covered like you would under a builders warranty.

http://www.buildingcommission.wa.gov.au/consumers/home-indemnity-insurance

http://www.buildingcommission.wa.go...uilders/building-principal-place-of-residence



I want to start that Tafe course this year. It looks awesome!

Building Commission of Western Australia will be able to provide info on registration.

http://www.buildingcommission.wa.gov.au/licensing/builders

Looks like there are 2 options: Building Practitioner or Building Contractor

http://www.buildingcommission.wa.gov.au/licensing/builders/practitioner-registration

http://www.buildingcommission.wa.gov.au/licensing/builders/contractor-registration

Building Commission should be able to advice which would suit your circumstances and what the requirements are.

Thanks
Will know more about this later today, there are cheaper options I believe and you can do it on line.

 

[Scott No Mates]

Anyone got this??

How difficult is it to acquire. Someone mentioned easiest way to get this is through MBA??? Is this so...


Cheers
MTR

Are you talking residential or commercial work MTR? Regs vary between states so you don't necessarily need one for commercial work.

 

[HD_ACE]

I have also been looking into doing this sometime in the near future.

Really need to chat to people who have done the different courses and get a feel for the content.

But would definately be good to have.
Cheers

 

[MTR]

I have also been looking into doing this sometime in the near future.

Really need to chat to people who have done the different courses and get a feel for the content.

But would definately be good to have.
Cheers

DH spoke to someone, he has a contact and apparently best way and cheapest option is via a QLD group, will find out more soon and post. I have not been researching this, hopefully have more info for you soon.

How could you go wrong??? Money in your own pocket.

 

[mrdobalina]

I've thought about this as well.

Alternatively.... We could pull our collective minds and resources together and set up a building company for people on somersoft?

How could you go wrong??? Money in your own pocket.[/QUOTE]

 

[MTR]

I've thought about this as well.

Alternatively.... We could pull our collective minds and resources together and set up a building company for people on somersoft?

How could you go wrong??? Money in your own pocket.

[/QUOTE]

Could do, but who wants this type of headache, I stick to my own projects

 

[MTR]

Just an update. From researching various options, apparently this is possibly the best option and cheapest, recognised Australia wide, only $1000, I believe some charge as much as $5000 and not as good.

http://keystonetraining.com.au/

Also, there are ways to help get around the 5 years experience required that will get you over the line, but will not post this here.

Cheers
MTR

 

[Chomp]

Just an update. From researching various options, apparently this is possibly the best option and cheapest, recognised Australia wide, only $1000, I believe some charge as much as $5000 and not as good.

http://keystonetraining.com.au/

Also, there are ways to help get around the 5 years experience required that will get you over the line, but will not post this here.

Cheers
MTR

I would liken attempting this with only doing a few developments through a builder, to the same as me putting on a few band aids and attempting to become a GP for 1k and a dodgy letter.

I am registered with no limitations, check on the Building Commission for what they want with regards to experience, the two year full time course / double diploma is what I recommend, it will open your eyes up as to what you have no idea about.

I'm not trying to be a smart *** but I find it a bit insulting when people think shorting the system is alright when I worked so hard to get mine. How would you feel if you bought a house off someone who had attained their license in this manner ?

Saying that, if you explain to the board you only want to build single storey resi they do issue reduced / limited licenses which may mean you wouldn't need to jump through so many hoops.

 

[Aaron Sice]

Marisa - owner build is quite a bit more involved than scheduling trades - I know you know this, but I really think some people over simplify the deal.

Insurances are the killer. Raising cash 6 years down the track for a failed roof that an insurer deems is your fault because even though a tree fell on it in a storm, your skew nailing for the rafters wasnt exactly to code therefore their building inspector for the insurance co says you are at fault can be, well - unexpected.

 

[MTR]

I have been royally chastised, fair enough.

However, in my defence, I am repeating what one of the largest associations affiliated with this group has advised and they also highly recommended Keystone Trading as one of the best in Australia.

My intension was to share information. DH spoke to this group and I believe we probably wont need to look at other options due to DH background. I think what they are suggesting is not dodgy at all, but more about how one can improve chances and yes, it will perhaps help reduce the 5 years experience, once again only repeating what I have been told by the association affiliated with this group.

The point is one would still need to complete and pass exams, I don't believe for one minute that it will be a walk in park.

Chomp
Knew you had your licence and hoping you would respond, not intending to insult.
Thanks for info on reduced limited licence, more homework now

 

[MTR]

Marisa - owner build is quite a bit more involved than scheduling trades - I know you know this, but I really think some people over simplify the deal.

Insurances are the killer. Raising cash 6 years down the track for a failed roof that an insurer deems is your fault because even though a tree fell on it in a storm, your skew nailing for the rafters wasnt exactly to code therefore their building inspector for the insurance co says you are at fault can be, well - unexpected.

Hi Aaron

Insurance what are we talking here

The thing is you would still be saving money as you cut out the builders margin, it comes at a cost though, more work and perhaps more risk??

It will be a matter of weighing it up. Who knows, may end up using a builder anyway if it does not pan out for whatever reason.

Cheers
MTR

 

[Chomp]

No problem Marisa, I know a lot of lurkers read, so it is for their benefit as well.

The Building Commission are very helpful, certain companies would like you to think that they are not so they can make money from you, my experience with them has always been very good. You can email them questions to your hearts content and they need not know who you are to be honest.

Be aware that its Seven years experience and it does not necessarily mean that building 1 house per year = 1 years experience, see form C.

http://www.buildingcommission.wa.gov.au/licensing/builders/practitioner-registration

 

[westminster]

What I worry about is how to attain this magical builder's margin in my pocket.

One doesn't just flash a Builder's license at the tradies and they automatically give you a discount. They discount based on volume, future work, negotiations and because you are their second cousin twice removed and Nonna will write them out of the Will if they don't.

So I worry that I would get my builder's ticket and when getting quotes from tradies they would quote at exactly the same rates they would if I didn't have the ticket.

 

[westminster]

It would be interesting to go to a Cost Plus model like they do with renos - often it's Cost + 30%. You'd need the cash behind you though as banks hate it.

 

[HiEquity]

I have a friend who moved to qld to get a building licence with a plan to move back. I remember some vague reference to weeties packets although he was a sparky with more than a few years under his belt.

Trouble is he ended up staying there - apparently the sunshine coast is much nicer than Perth!

My take on this is to ask if you value your time and the risks more or less than a builder? If you're looking for work that's fine but keep in mind building is a competitive business so while the big boys no doubt make a lot of money I imagine there would be some reasonable variance as to the profitability of each project. And you would be playing without the volume advantages they enjoy.

Personally I got into property investing so I could work less rather than more but each to their own...and if I take on some risk I want to know that I'm well placed to do so as well as being adequately compensated for it.