Most owners think a building permit is one document. It is not. The Victorian process splits into a planning permit, a building permit, and a series of mandatory inspections that each unlock the next stage. Confusing them, or signing a contract before understanding which one you are on, is one of the most common ways a build starts on a bad foot.
Here is the plain English version, from someone who lodges and works under these documents week in, week out.
Planning permit versus building permit
A planning permit is granted by the local council under the planning scheme. It is about whether the project is appropriate for the location: heritage, neighbourhood character, overshadowing, traffic, environment.
A building permit is issued by a registered building surveyor under the Building Act. It is about whether the project is technically compliant: structural, fire, energy, accessibility, waterproofing. You cannot start construction without it. You usually need the planning permit first before the building permit can be issued for the same project.
Who chooses the building surveyor
Under Victorian reforms, building surveyors are appointed by the owner, not the builder. This is to keep the surveyor independent. In practice, most owners ask the builder to recommend one and that is fine, but the contract should make the appointment clear and the fee should sit with the owner.
Pick a surveyor who has dealt with comparable luxury work. A surveyor used to volume builds will not always know how to read complex joinery details or non-standard structural elements.
Mandatory inspections
The building surveyor or their inspector visits at set stages: footing, slab pre-pour, frame, lock-up, fixing, final. Each must be passed before the next stage can begin. A missed inspection delays the whole sequence.
On top of mandatory inspections, NCC 2022 has added or strengthened inspections around waterproofing and condensation control. Expect more eyes on these now than five years ago.
Domestic Building Insurance
For domestic building work over $16,000 in Victoria, the builder must hold Domestic Building Insurance and provide a Certificate of Insurance to you before any deposit is paid or work begins. This is non-negotiable, regulated by the Victorian Building Authority.
If a builder asks for any deposit before showing you the Certificate, stop. This is the first signal of a builder operating outside the framework.
Builder registration
The builder must be registered in the correct class for the work: Domestic Builder Unlimited for full residential builds, Limited classes for narrower scopes. Confirm registration on the VBA's public register before signing.
Realistic timelines
- Planning permit (no objections): 3-6 months.
- Planning permit (with objections or VCAT): 9-15 months.
- Building permit, once planning is in hand and drawings are issued for permit: 4-8 weeks.
- Total preconstruction: usually 6-15 months on a luxury custom build.
What to check before signing
- Builder is VBA registered in the correct class.
- Domestic Building Insurance Certificate provided before any payment.
- Planning and building permit responsibilities are clear in the contract.
- Surveyor appointment is yours and documented.
- Realistic preconstruction timeline is written into the program.
If you would like to walk through your specific permit pathway before committing to a builder, ask us.
This article shares general guidance from our experience as luxury home builders in Melbourne. Every project is different. For advice on yours, get in touch.
