You should always check your tradesperson holds a valid licence before you hire. Go to our Home building licence check page or call 13 32 20 to do a free licence check.
By law, all builders and tradespeople must display their licence number on any advertisement for their services.
Only a builder or trader who is properly trained and has the relevant experience to do the work may be licensed with NSW Fair Trading. Any person who carries out residential building work over $5,000 in labour and materials without an appropriate licence is breaking the law and could be prosecuted.
Specialist tradespeople who carry out any of the following must be licensed regardless of the cost of the work:
The golden rule is that you should always check your tradesperson holds the right licence for the job.
Licensing protects you in the following ways:
Fair Trading research into licensing reveals that some consumers are at risk because they do not actively check that a tradesperson is licensed before they hire. The research shows that 80% of home owners think licensing is important, but only one in ten go to the Fair Trading’s website to check if a tradesperson is licensed or not.
Read more about Fair Trading’s licensing research findings.
Do a free home building licence check.
Some licences on the public register may show the condition 'Only for contracts not requiring insurance under the Home Building Compensation Fund'. This means the contractor does not have insurance eligibility with the Home Building Compensation Fund.
'Eligibility' is the term used to describe the entitlement that a builder has to apply for a Certificate of Insurance for any particular project and the conditions under which the certificate may be granted.
Note: The Home Building Compensation Fund was formerly known as Home Warranty Insurance.
If an applicant for a Building Contractor Licence does not provide evidence of holding current eligibility for insurance under the Home Building Compensation Fund, the licence will be issued with the condition 'Only for contracts not requiring insurance under the Home Building Compensation Fund'. Alternatively, if the Fund advises Fair Trading that an existing licence holder no longer has eligibility, the licence will be likewise conditioned.
This condition on the licence will remain on the Public Register until Fair Trading receives advice from the Fund that the licence holder has eligibility, at which time the condition will be removed and the Public Register updated to reflect the new status of the licence.
|Important - If a tradesperson is doing more than $20,000 worth of work (including both labour and materials, and regardless of whether the job has been split into more than one contract), always make sure the contractor you choose provides you with an insurance certificate under the Home Building Compensation Fund covering your project before you pay any money and before any work is undertaken.|
Many builders today do not do actual building work themselves. Builders or building contractors:
A tradesperson has a current licence from NSW Fair Trading to carry out work in a particular field in the home building industry in NSW.
The term tradesperson includes all licensed:
If you want your gutters replaced or your plumbing fixed, you need a tradesperson.
If you want to add another bedroom or build a new home, you need a builder to organise the right tradespeople to do the work.
A supervisor is an individual who is responsible for supervising the work under a building contract on behalf of a contracting company or partnership.
The supervisor may hold either a qualified supervisors certificate or a contractor licence.
This certifies that the supervisor is qualified to supervise but not to enter into contracts under this certificate.
Where an architect or other person (not being the building contractor) has been contracted separately to supervise the work of the builder, the roles and responsibilities of that person should be clearly defined in an appropriate contract separate from the building contract.
This is so that there is no confusion about what someone is paid to do. Every person working on a residential building work (RBW) project for the property owner should itemise separately their responsibilities in writing, in case of future dispute about who was the principal person responsible (builder) for the whole RBW project.
Try the following:
If you choose one of the designs of a builder on display at an exhibition home, then you will probably use that builder. Unless you have otherwise agreed, your new home must by law, be built to the same standard of work and materials used in the exhibition home.
Before you sign a contract, find out what the standard inclusions are. You will have to negotiate with the project builder if you want any changes to the design, fixtures and fittings so that the total cost will fit your budget.