Cancellation or suspension of a licence, certificate or registration

Key information

• Your licence, certificate or registration can be cancelled in a range of circumstances, including if you:
  • become involved in unlawful activity
  • get a licence by misrepresentation or fraudulent means
  • become bankrupt or subject to a winding up order.
• If your licence is cancelled, we will not refund any of the fees paid.
• Your licence will be automatically suspended if you do not comply with an order by a court or the NSW Civil or Administrative Tribunal (NCAT) to pay money for a building claim.
• If the company is appointed with an external administrator, the company licence may be suspended.
• Your licence may be suspended as a result of compliance action.

You must take immediate action

If your licence or certificate has been cancelled or suspended, you must immediately:

• stop all business activity that relates to the licence or certificate
• remove any sign or advertisement which indicates the conduct of business activity that relates to the licence or certificate
• return the licence or certificate to a Service NSW centre or to Building Commission NSW by mail. The address is provided on the cancellation notice.

You should also let your clients know, either verbally or in writing, that your licence has been cancelled or suspended and you are unable to complete any unfinished work.

When a licence may be cancelled

Your licence or certificate may be cancelled in the following circumstances.

Company or partnership licence cancellation

• If the company becomes insolvent and enters into liquidation the company licence will be cancelled.
• If the company licence was obtained though misrepresentation, whether intentional or not, it may be cancelled.
• If a company or partnership licence holder goes more than 30 days without an approved nominated supervisor and without obtaining prior consent from the NSW Building Commission, the licence may be subject to cancellation.
• If a company or partnership licence holder is convicted of more than one offence related to Home Building Compensation (formerly Home Building Warranty) Insurance within a 12-month period, the licence may be cancelled.
• If a contractor licence holder fails to maintain professional indemnity insurance or a similar type of insurance for the required period, the licence may be cancelled.
• If a contractor licence is held by a partnership and there is any change in its membership without the Secretary's prior approval, except in the case of death, the licence may be cancelled

Individual licence cancellation

• Your individual licence may be cancelled if you are a director of a company that has entered into external administration or liquidation.
• If you have obtained your individual licence or authority through misrepresentation, whether intentional or not, your authority may be cancelled.
• If you are declared bankrupt, your authority or licence may be cancelled.
• If you are a person who has been found guilty of serious criminal offences, your licence or authority may be cancelled.

When a licence may be suspended

Your licence or certificate may be suspended in the following circumstances:

• Your licence will be automatically suspended if you do not comply with an order by a court or the NSW Civil or Administrative Tribunal (NCAT) to pay money for a building claim.
• If the company is appointed with an external administrator, the company licence may be suspended.
• Your licence may be suspended as a result of compliance action.

Automatic suspension for non-compliance with a monetary order

Your contractor licence will be automatically suspended if you fail to comply with a court or NSW Civil and Administrative Tribunal (NCAT) order to pay money for a building claim by the due date. 

The automatic suspension of a licence takes effect 28 days after the due date for payment under the order. If an order has been stayed pending an appeal, the automatic suspension will take effect immediately once the decision is confirmed on appeal. 

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 remain in effect 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 certain situations, the Secretary may postpone the start of a suspension if it has not yet taken effect, provided that 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.

Suspension of contractor licences on appointment of controller or administrator

Building Commission NSW can suspend the licence of a company where a controller or administrator is appointed or during an investigation into a licensee's conduct. Suspension is based on an assessment of risk to the public.

Suspension can be reversed if the administration is finalised and the company is able to trade, or if an investigation concludes no further action should be taken.

What happens when 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.
• Your Home Building Compensation (HBC) cover or eligibility may be affected. 

Consumer protection if a contractor does not comply with money order

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. Previously known as Home Warranty Insurance, the Scheme compensates homeowners if their builder fails to complete building work or fix defects because of insolvency, death, disappearance or licence suspension. 

Consumers can do a Home Building Compensation (HBC) Check online.