Step 1

Apart from the obvious, that one builder does residential building and the other does commercial building work, I have outlined below the other differences.

  1. Can a residential builder also build commercial buildings?
  2. Are there different types of commercial builders in Melbourne?
  3. Do residential and commercial builders need to be registered?
  4. Are residential building contract laws the same for commercial builders?

1 – Can a residential builder also build commercial buildings?

Simple answer is NO. But a commercial builder in Melbourne can do a residential project.

 2 – Are there different types of commercial builders in Melbourne?

There are two types of commercial builder’s licenses in Melbourne.

CB-L and CB-UL

Commercial Builder – Limited & commercial builder unlimited.

There are also 3 tiers within the commercial building in Melbourne,

Tier 1 – Big company commercial builders.

Tier 2 – Mid size companies that have the capacity, staffing, knowledge and money to do major projects

Tier 3 – This is the smallest of the companies, usually doing single factory construction to shop fit outs, companies that have limited recourses and cash flow.

 3 – Do residential and commercial builders need to be registered?

Yes, both commercial and residential builders in Melbourne need to be registered with the VBA – Victorian Building Authority.

 4 – Are residential building contract laws the same for commercial builders?

There are big differences to the initial contract between residential and commercial builders. With residential builders in Melbourne, you can get pre-designed contracts for all manner of projects from extensions, to new build’s from your local bunnings, and you simply fill in the spaces where needed. This is good, as it allows for a minimum requirement for your builder and you to make a binding lawful contract that is cost effective and quick.

Where-as, in the commercial side, there is no such pre-made contracts, as the saying goes” the big boys should be able to look after themselves”, This means that commercial builders in Melbourne or designers of the project will generate their own contract specifically for the project, as will the client. This is to ensure that timelines, quality, safety and all other client and legal requirements are meet within the legally biding contract.