Builders must install kit homes

Builders must install kit homes

Victorians wanting to construct a kit home should do their homework to ensure it is built to code. The Victorian Building Authority (VBA) has advised all kit home suppliers that they must be a registered builder if they also install the homes they sell.

This reminder comes after a magistrate found a supplier and its director guilty of building a kit home without being a registered builder. The total fine was in excess of $22,000.

The company entered into a contract with a property owner for $37,900 agreeing to install a kit home on their Bendigo property in 2011. The owner obtained a building permit for the work as an owner-builder.

The director argued the company was not the builder for the project and was subcontracted to the homeowner. However, the magistrate said that once the company agreed to install the house, they became the builder.

The company also claimed the charge for installation was less than the $5000 threshold requiring work by a registered builder. The magistrate found the cost of the building material should be included in the total cost of work.

The company and director were each fined more than $11,000 for carrying out work when the director was not a registered builder.

VBA chief executive officer Prue Digby said there has been confusion for people about who is the official builder of kit homes.

“This case makes it clear to the industry and homebuyers that anyone who supplies a kit home and then installs it, is considered to be carrying out major domestic building work. This means that the work must be done by a registered builder and a proper contract must be in place.”


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