Step 1. Check the builder's licence

The first step is to check the builder’s licence with the NSW Fair Trading. This step ensures that the builder is licensed to carry out the work and is registered with the appropriate authorities.
Build with Confidence: Get Your FREE Checklist for Choosing the Right Builder in NSW Today!
Are you preparing for a construction project in NSW? Take proactive measures to verify builder licence and insurance, crucial steps in the process. Neglecting these verifications can lead to costly fines, project setbacks, and potential legal complications. Download our Pre-Construction Checklist today to guide you in ensuring your project’s success and compliance by confirming builder credentials and coverage.

Step 2. Verify the builder's insurance coverage

Homeowners should also verify the builder’s insurance coverage. Builders should have the necessary insurance coverage to protect the homeowner if accidents or property damage occur during the construction process. 

1. Check for Workers Compensation Insurance

Check if the builder has workers’ compensation insurance, which is compulsory in NSW for all employers. This type of insurance provides coverage for workers who are injured on the job. 

2. Check for Public Liability Insurance

Check if the builder has public liability insurance, which covers the homeowner in case of property damage or personal injury to a third party. 

Step 3. Review the contract

Reviewing the contract is crucial to ensure that the builder’s obligations are outlined clearly. The contract should include details such as the scope of work, payment terms, timelines, and dispute resolution procedures.

1. Verify compliance with Home Building Compensation Fund (HBCF) insurance requirements

Homeowners should also ensure that the builder has complied with HBCF insurance requirements. This type of insurance provides coverage for homeowners if the builder is unable to complete the work or if there are defects in the work, where the builder becomes insolvent, dies, disappears, etc.

2. Ensure transparency in the contract

The contract should be transparent, clearly outlining the builder’s obligations and responsibilities. Homeowners should also ensure that any variations or additional costs are documented in writing and agreed upon by both parties. 

Step 4. Stay vigilant during the construction process

During the construction process, homeowners should stay vigilant and ensure that the work is being completed to the agreed-upon standards. This step ensures that any defects or issues are identified and rectified promptly.

Step 5. Seek legal advice if needed

If disputes arise during the construction process, homeowners should seek legal advice from a construction lawyer. A construction lawyer can help homeowners navigate the dispute resolution process and protect their legal rights.

Build with Confidence: Get Your FREE Checklist for Choosing the Right Builder in NSW Today!
Are you preparing for a construction project in NSW? Take proactive measures to verify builder licence and insurance, crucial steps in the process. Neglecting these verifications can lead to costly fines, project setbacks, and potential legal complications. Download our Pre-Construction Checklist today to guide you in ensuring your project’s success and compliance by confirming builder credentials and coverage.
Steps to Verify Builder Licenses and Insurance in NSW

Ensuring the Safety and Security of Your Home through Verifying Builder Licence and Insurance in NSW

Verifying builder licence and insurance is a crucial step in protecting your investment in your home. By following the guidelines and requirements set out in this article, you can ensure that you are working with a qualified and reputable builder who has the appropriate insurance coverage. As a construction lawyer with over 10 years of experience, I have seen the consequences of failing to verify builder licence and insurance. It is always better to take the necessary steps upfront to prevent disputes and legal issues down the line.

Request and Compare Builder Quotes Checklist:

Before embarking on any construction project, it is essential to compare multiple quotes from different builders to ensure you are getting the best deal. We have created a Request and Compare Builder Quotes Checklist to help you with this process. This checklist includes essential information to gather from each builder, such as licence and insurance information, project timelines, and payment terms. By using this checklist, you can make informed decisions and avoid common pitfalls in the construction process. Download the checklist today to get started on your construction project.