For non-compliance with a monetary order
Section 42A of the Home Building Act 1989 automatically suspends a contractor licence where the holder fails to comply with an order by a court or the NSW Civil and Administrative Tribunal (NCAT) to pay money for a building claim by the due date.
Generally, the due date for payment of a money order is specified in the order for payment. If no time limit is specified, the due date for payment is set by the Secretary and is usually the date of the decision.
The suspension will continue until the Secretary is satisfied that the order has been complied with or the licence expires at the end of its term. A licence holder will be ineligible to have their licence reissued until they comply with the order.
The automatic suspension provisions do not apply when a licence holder fails to comply with any other type of order, including a work order, or rectification order.
Deferral of a suspension
In some circumstances, the Secretary may defer the start of a suspension where the suspension has not already taken effect where there is:
- Evidence of a granted stay of proceedings pending an appeal against the decision is provided, or
- Evidence of both parties mutual agreement of an alternate arrangement such as a payment arrangement is provided.
Note: If the decision is confirmed on appeal the suspension will take effect immediately.
View or download a copy of Fair Trading’s Guidelines for the automatic suspension of a licence under Section 42A of the Home Building Act 1989 (PDF, 134.27 KB) for more information.
What happens if my licence is suspended?
- The public register will display the licence status as suspended until the suspension is lifted or the licence expires.
- The suspension will be recorded on the public register licence record indefinitely.
- The non-compliance of the order will be recorded on the public register licence indefinitely.
- The licence card must be surrendered at a Service NSW centre within 7 days.
- Home Building Compensation (HBC) cover may be affected. Go to the Home Building Compensation Scheme page on the State Insurance Regulatory Authority website for more information.
Consumer protection
The Home Building Compensation Scheme provides greater protection for consumers if a contractor fails to comply with a money order of the NCAT or a court. The Scheme (previously known as Home Warranty Insurance) compensates homeowners if their builder doesn’t complete building work or fix defects because of insolvency, death, disappearance or licence suspension. Go to the Home Building Compensation Scheme page on the State Insurance Regulatory Authority website for more information.