New home build, renovation & joint venture FAQs

At D3 Built, we know there are many questions when you set out to build a new home, renovation or extension of your existing home, or investigate a joint venture development. We have compiled some of the more common questions and answers we receive.

If you have further questions, please get in touch with us and we’ll be happy to answer you direct.

What industry memberships and registrations should a builder hold?

D3 Built has two registered domestic building practitioners with VBA. This is required by law by all builders. All sub-contractors we align with are checked for licences and registrations with checks conducted on their qualifications. There are industry organisations that some builders choose to register with, however these are not mandatory.

What building experience do you have?

The team at D3 Built has decades of building experience. We also work with contractors who are specialists in their fields with extensive portfolios of work.

Do you have warranty insurance?

Yes, D3 Built provides home warranty insurance for all work of $16,000. Home Warranty Insurance is purchased on behalf of the client and covers issues for a term of 7 years. The insurance applies if the builder dies or becomes insolvent. In all other scenarios, D3 Built warranty the works.

Does D3 Built have standard plans to choose from?

No. D3 Built custom build every home. Every new build, building renovation and home extension is unique. However, we have partnerships with Architectural Building and Interior Designers to whom we can recommend.

Can designs be changed after we commence work?

There is definitely flexibility and adaptability throughout your build process with D3 Built – that’s the benefit of a custom build. However, there’s a process that must be adhered to and it’s important you are upfront if you are considering changes so we can ensure measures are taken at the appropriate stage/s. Depending on the change/s you’d like to implement, adjustment in the proposal and price may also be required.

Does D3 build on slopes and narrow blocks?

Yes. We build on slopes and narrow blocks. In fact, with our engineering background, we are specialists in complex builds.

Where does D3 Built build?

D3 Built predominately builds within metropolitan Melbourne with our core work located in inner-west Melbourne suburbs, such as Williamstown, Seddon, Yarraville, Newport, Spotswood and West Footscray areas.

What’s the difference between prime costs and provisional sums?

Prime Cost items are items that either have not been selected or whose price is not known at the time a contract is entered into, and that the builder must make a reasonable allowance for the cost of supply and delivery in the contract. Examples include a fixtures and fittings.

Provisional Sum is an estimate of the cost of carrying out particular work (including the cost of supplying any materials needed) for which a builder, after making all reasonable enquiries, cannot give a definite amount at the time the contract is entered.

What is included in your quote’s price?

Depends. As we tailor build, we also tailor each quote depending on conversations and scope of work required.

Are there hidden fees outside of your proposal?

Not usually. We work with you from the outset to discuss and clearly identify everything within the scope of work. This will be detailed in your proposal and contract.

However, additional costs and fees may need to be provisioned for in the event you choose to change the scope from our initial agreement.

Does D3 Built offer fixed price contracts?

Yes. Fixed price contracts are generally for builds less than $1M. We also do Cost Plus contracts that are builds greater than $1M or that are difficult to estimate the scope of work.

When do you need a major domestic building contract (MDBC)?

An MDBC is required for any building work over the cost of $16,000.

What is the Deposit, Stage Gate and Final payments?

A Builder cannot receive a Deposit under a MDBC of more than 5% for contract prices greater than $20,000, and 10% for contract prices less than $20,000.

Stage gate Payments, Depending on the contract, to build to a certain stage influences the progress payments. For a new home OR renovation, progress payments typically traverse the following stages of:

Stage	Percentage of Contact Price
Base	10%
Frame	15%
Lockup	35%
Fixing	25%

The above stages, coupled with a 5% Deposit and then a 5% Final Payment, concludes the total contract price. This setup is commonly referred to as Method A.

However, many builders, such as ourselves, employ the Method B payment option. That is essentially where the Builder varies stage payments. This is typically done for business cashflow purposes and requires consent of both the Client and Builder.

When do you need a Building Permit?

A Building Permit is not required subject to the following criteria set out and described in detail of the Victorian Building Regulations (2018), ‘Schedule 3 – Exemptions for building work and buildings’.

Excerpt from the Regulations is provided below for guidance purposes only. Any individual referring to these clauses should confirm their accuracy via the most recent version of the Regulation available.

Construction of a freestanding Class 10a building that –
1. Has a floor area not exceeding 10m2; and
2. Is no more than 3 m in height or, if situated within 1 m of a boundary, is no more than 2.4 m in height; and
3. If appurtenant to a building of another class on the same allotment, is located no further forward on the allotment than the front wall of the building to which it is appurtenant; and
4. If it is not appurtenant to a building of another class on the same allotment, is the only Class 10a building on the allotment and is set back at least 9m from the from street alignment and at least 2 from each side street alignment; and
5. Is not constructed of masonry
Demolition of a freestanding Class 10 building that –
1. Is not constructed of masonry; and
2. Does not exceed 40m2 in floor area; and
3. Will not adversely affect the safety of the public or occupiers of the building; and
4. Is not work carried out on it in connection with a building included on the Heritage Register, within the meaning of the Heritage Act 2017.
Repair, renewal or maintenance of a part of an existing building, if the building work –
1. Will not adversely affect the structural soundness of the building, and does not include
  1. An increase or decrease in the floor area or height of the building;
  2. Underpinning or replacement of footings; or
  3. The removal or alteration of any element of the building that is contributing to the support of any other element of the building; and
2. Is done using materials commonly used for the same purpose as the material being replaced; and
3. Will not adversely affect the safety of the public or occupiers of the building ; and
4. Will not adversely affect an essential safety measure relating to the building
Alterations to a building, if the building work
1. Will not affect the structural soundness of the building and does not include
2. Will not project beyond the street alignment; and
3. Will not adversely affect the safety of the public or occupies of the building; and
4. Is not work carried out on, or in connection with, a building included on the Heritage Register; and
5. Is not work in relation to, and will not adversely affect, an essential safety measure relating to the building.

Subsequently, a Building Permit and Building Surveyor is required in all other scenarios.

What is the difference between a Planning Permit, a Building Permit and an Occupancy Permit?

Planning Permits are issued by the Local Government Authority. They are required in certain building scenarios, such as an increase in requirements for a property development project or alike. Planning Permits are not ‘always’ required to build, however advice should always be sought from the Local Government Authority Planning Department.

Building Permits are issued by either the Local Government Authority OR Private Building Surveyor. They provide endorsement to proceed with the intended plans, supporting engineering, etc. Building Permits are not required in a subset of scenarios only. These scenarios are noted ‘When do you need a Building Permit question’ though are also found in the Victorian Building Regulations.

An excellent source of information on Planning and Building Permits can be located on the VBA website: https://www.vba.vic.gov.au/consumers/home-renovation-essentials/permits

Occupancy Permits are issued by either the Local Government Authority OR Private Building Surveyor and confirms the build is fit for habitation. The Occupancy Permits is issued on satisfactory final inspection of the Building Surveyor.

How long will it take to build a new home?

Whilst it’s often difficult to give an accurate timeframe, a new home build typically takes between 9 to 18 months, depending on complete specification of the home.

What’s the maximum height you can build on boundaries?

The Victorian Building Regulation (2018) section 80 (4) identifies a maximum height of a wall on boundary to be 3.6 meters. This is subject to Local Government Authority Planning Schemes and additional clauses noted within the Victorian Building Regulations.

When do you need a Soil Report?

A Soil Report is required to determine soil type and classifications, and is required when dealing with any structure that is required to disturb the ground, i.e. footings, stumps, etc.

How do I know if I am in a Termite Zone?

The Local Government Authority is responsible and administers residential builder Termite Zoning. A call to their local planning / building department quoting the address will confirm termite zoning. The Local Government Authority is obliged to provide this information in accordance with Victorian Building Regulation (2018) 51 (2) in writing.

Should I apply a Termite Treatment if I am not in a Termite Zone?

The answer to this question is subjective as it depends on the location to the Local Government Authority’s Termite Boundaries. Therefore, if you are within close proximity to a Termite Boundary, it may be wise to consider Termite Treatments within the build phase to mitigate the prospect of any such problem.

Can I access the home during the building process?

Once the building commences, it is a work site and can have various safety risks. For this reason, you can visit your home by appointment and accompanied by a representative of D3 Built to ensure risks are mitigated and Victorian OH&S Rules and Regulations are abided.

Who do I contact if I have any questions or issues with the building process?

You will be allocated a site supervisor early in the build and they will be your contact during the build.

What happens if something goes wrong?

The D3 Built team follows building standards to the best of our abilities. For unforeseeable problems, we have warranties and insurances in place.

What about problems after handover?

D3 Built has a three-month maintenance period, during which we will repair or organise the repairs for your new home.