Industry alert: Commercial Building Registration – limitations

A commercial builder's registration may be limited to a particular class or classes of commercial building work, such as classes limited to:

• the construction of low-rise building work
• the construction of medium-rise building work
• the erection of signs work
• waterproofing work.

The VBA will only register an applicant in a particular class of commercial builder where it is satisfied that the applicant holds the relevant qualifications and experience, and has demonstrated a minimum standard of competency.

Where a commercial builder's registration is limited to a class or classes, that commercial builder is only registered in that particular class or classes.

A commercial builder who implies or represents that it is registered in a class or classes of commercial builder which it is not registered in, will be in breach of the Building Act 1993 (Vic). Severe penalties can apply.

In addition to limiting a commercial builder's registration to a particular class, the VBA may impose additional conditions on the builder's registration. Failure to comply with a condition is a ground for disciplinary action, the sanctions for which can include a reprimand, a monetary penalty, suspension and disqualification.

The class or classes of commercial builder in which you are registered will be stated clearly on your certificate of registration, together with any conditions which apply to the registration.

There is no cap on the number of classes in which a commercial builder can be registered.

The VBA expects that builders will, as part of their general professional obligations, ensure that they have appropriately established their competence to undertake all the work they do, including by obtaining registration in the class or classes that apply to particular building work.

Where, as a result of particular building work coming to the attention of the VBA, it is clear that the builder was working outside the scope of his or her registration and that this has contributed to building work being non-compliant or defective, the VBA will consider disciplinary action for unprofessional conduct.

Unprofessional conduct is a serious matter, with proposed disciplinary action typically including interference with ongoing registration, in addition to monetary penalties, training requirements and reprimands.

If you are thinking of undertaking commercial building work outside the class in which you are registered, or which is not permitted by conditions on your registration, the VBA expects that you will apply for and obtain the appropriate registration (or the removal of the relevant condition) and that you will not do such building work until your registration expressly permits you to do so.

The relevant building surveyor will be checking that a builder holds the right registration to carry out the commercial building work required by the building permit. If the relevant building surveyor is not satisfied that the builder is registered in the right category and class necessary to undertake the commercial building work set out in the building permit and within the conditions of their registration, the relevant building surveyor should not issue the building permit. 

Therefore, it is important for you as a builder to ensure that the commercial building work you propose to carry out under a building permit is in a category and class of commercial building in which you are registered and which is permitted by the conditions on your registration.

Example class  

A commercial builder in the class limited to the construction of low-rise building work is registered to carry out the construction of commercial buildings and structures:

• up to of 15 metres in height, and
• with bulk excavations up to a depth of 3 metres.

The work permitted by this class includes structural and non-structural fit outs and structural landscaping on buildings up to 15 metres in height, with bulk excavations up to a depth of 3 metres. All other activities permitted by this class can only be carried out on commercial buildings within these height restrictions.

This limitation does not allow a commercial builder within this class to carry out fit out works (or other building work) on a building that has an overall height greater than 15 metres. This means that if a commercial builder registered in the class limited to the construction of low-rise building work is asked to undertake fit out work on the first storey of an 18 storey commercial building, such works are not permitted because the height of the overall building is greater than 15 metres. The height of the overall building is the key determining factor, not the height at which the works are being undertaken. 

With regards to the limitation of bulk excavations works to 3 metres in depth, this is not limited to vertical cuts. Site batters are included within the reference to ‘bulk excavations’ and are also limited to 3 metres in depth. Refer to the images below for examples of different types of bulk excavations which are all limited in this class to no more than 3 metres, regardless of the type. 

Note: the images below are intended only to show some typical types of bulk excavations and may exceed the depth limitation for commercial builder – low rise.

Please refer to this VBA web page which outlines:

• the work that a commercial builder whose registration is limited to a particular class or classes is permitted to carry out; and
• the eligibility requirements to become a registered commercial builder.

Please visit the above web page or contact us on online or call us on 1300 815 127 for clarifications regarding builder categories/classes, restrictions, and limitations.