Checking a builder's licence in NSW: a step-by-step walkthrough

Checking a builder's licence is free, takes about ten minutes, and is one of the few checks an owner or committee can do entirely on their own before signing. Plenty of people skip it, or glance at a number on a quote and assume it is fine. A quick search only protects you if you read the result properly and match it against the paperwork in front of you.

This walkthrough covers where to look, what each part of the result means, and the mismatches that should make you stop. Our article on what to check before you sign a building contract covers the contract itself. This one goes deeper on the licence lookup.

When a licence is needed

In NSW, a contractor licence is needed to carry out, advertise or contract for residential building work valued at more than $5,000 in labour and materials, including GST, according to the NSW Government's guidance on general building work. Specialist work — electrical wiring, plumbing, drainage, gasfitting, air conditioning and refrigeration — needs a licence regardless of value.

Step 1: Get the details in writing

Before you search, collect the following from the quote or draft contract:

• the licence number;
• the exact name of the person or business you are contracting with, which is the name that will appear on the contract; and
• the ABN, and the ACN if it is a company.

Notice whether you are dealing with an individual or a company. If the quote is from "Example Building Pty Ltd", the licence you need to check is the company's contractor licence, not just the licence of the person who came to your site. A builder who will not give you a licence number before you sign has answered the question for you.

Step 2: Search the register

Use the NSW Government's Check a builder or tradesperson licence tool, which runs on the Verify licence site. According to Service NSW, you can search by:

• licensee name;
• licence number;
• licence type;
• ABN or ACN; or
• location (suburb, postcode or local government area).

Search by licence number first, because it is the most precise. Then search by the business name and ABN as well. If the three searches do not lead to the same record, find out why before going any further.

If you cannot find a licence online, NSW Fair Trading can be contacted to check.

Step 3: Read the result properly

The NSW Government says the check shows the holder's name, licence numbers, categories and expiry dates, the type of licence or certificate held and its status, and any suspensions, conditions, public warnings, cautions, penalty notices and prosecution outcomes. Here is how to read each part.

The type of licence

This is the part people most often misread. The main types for general building work are:

• Contractor licence. Needed to contract for, advertise or carry out residential building work over the threshold. This is what the business you sign with must hold. It can be held by an individual, a company or a partnership.
• Endorsed contractor licence. An individual contractor licence issued only to someone who also has the qualifications and experience of a qualified supervisor. The card shows "contractor licence (Q)".
• Qualified supervisor certificate. Allows the holder to supervise and do the work, but not to contract for it in their own right. A person who holds only a supervisor certificate should not be the party signing your contract.

Specialist trades also have tradesperson certificates, which allow the holder to do the work under the right supervision but, again, not to contract for it.

Company licences and the nominated supervisor

A company or partnership contractor licence must have a nominated qualified supervisor. According to the NSW Government's company and partnership licence page, this is an individual who holds an endorsed contractor licence or a qualified supervisor certificate in the same categories of work as the company, and is recorded by Building Commission NSW as the person responsible for supervising the company's work. It is reasonable to ask who that person is and whether they will actually oversee your job.

Categories

A licence covers specific categories of work. A licence for general building work covers different things from one for, say, waterproofing, plumbing or electrical work. Check that the categories on the licence match the work in your quote. A licensed specialist trade contractor is not automatically licensed to contract for a whole renovation.

Status and expiry

The status should be current. Expired, suspended or cancelled means the holder cannot lawfully contract for the work. Check the expiry date too. If the licence expires before your job is likely to finish, ask about renewal.

Conditions and history

Read any conditions endorsed on the licence, and any public warnings, cautions, penalty notices or prosecution outcomes shown. One old penalty notice does not have to rule a builder out, but you are entitled to ask about it, and the answer will tell you a lot. A pattern of them is a different matter.

Step 4: Match the names and the ABN

Now compare three things:

1. the name and number on the licence record;
2. the name, ABN and ACN on the quote or contract; and
3. the details on ABN Lookup, the Australian Business Register's free search.

They should all point to the same entity. Common mismatches:

• the quote is from a company, but the licence shown is an individual's;
• the licence belongs to a different business with a similar name;
• the ABN on the quote belongs to someone other than the licence holder; or
• the trading name on the quote does not appear anywhere on the licence record.

There can be legitimate explanations, such as a recent change of business structure, but get them in writing and check the corrected details before signing.

Step 5: Check the insurance certificate

For residential building work over $20,000, the builder must provide a Home Building Compensation Fund (HBCF) certificate before taking any payment, deposit included, or starting work. Our before you sign article explains this rule.

Do not just accept the certificate. Verify it on the HBC Check register. According to icare, you can search by certificate number, contractor licence number or name, or property address. Confirm that:

• the certificate exists on the register;
• it is in the same name as the contractor on your contract;
• it is for your property address; and
• the description of work matches what you are having done.

A certificate in another builder's name or for a different address does not cover your job.

Step 6: Look beyond the builder

The builder is not the only party on a project. Certifiers, registered design and building practitioners, engineers and individual trades each have their own register. Our sister article, beyond the builder: checking certifiers, engineers and trades, walks through those.

Red flags that should stop you signing

• The builder will not give you a licence number, or gives one that does not come up.
• The licence is in a different name from the contract, and there is no clear written explanation.
• The licence is expired, suspended or cancelled.
• The categories do not cover the work being quoted.
• The person signing holds only a supervisor or tradesperson certificate.
• You are asked for a deposit on a job over $20,000 before receiving an HBCF certificate you can verify.
• The quote shows a trading name with no ABN.

How we handle it

We give clients our licence details up front, in writing, and we are happy for you to check them before we ever ask for a signature. Licence and insurance details are on every contract, and the HBCF certificate is provided before any payment where it applies. Our Legal & Licensing policy sets this out formally. If you would like to talk through a project, get in touch.

Sources

• Check a builder or tradesperson licence, Service NSW
• Check a business or trade licence, Service NSW
• Checking your contractor or tradesperson is qualified, NSW Government
• General building work licences, NSW Government
• Company and partnership licences, NSW Government
• HBCF certificates register, icare
• ABN Lookup, Australian Business Register

This article is general information, not legal advice. Licensing rules and register features can change, so check the current guidance from NSW Fair Trading and Building Commission NSW, and get legal advice on any contract you are unsure about. Full website disclaimer