Step by step guide to choosing the right tradesperson or builder

Practical advice to help you find the right tradesperson or builder for your home building or renovating project.

Customer engagement with tradesperson
On this page

Key information

  • Tradespeople and builders play a key role in the success of your construction or renovation project, supporting quality workmanship and compliance with regulations. 
  • You should always verify that your contractor is appropriately licensed and qualified in NSW before you hire them.
  • Confirming your contractor has the required insurance may help safeguard your project and can provide financial protection in unexpected events.
  • A well-drafted contract can help clarify expectations, secure your agreement, and help avoid disputes.

The role of a builder

Builders manage and oversee construction or renovation projects. Their role includes:

  • supervising tradespeople
  • ordering and coordinating materials
  • managing the overall project from start to finish.

Project homes

If you choose a builder based on a display home design, you’ll likely work with that builder. Make sure you sign a contract that clearly details all aspects of the build, including the materials, features, and finishes.

Types of tradespeople

Tradespeople are licensed professionals specialising in various fields within the home building industry, such as bricklayers, electricians, plumbers, carpenters, and painters. Find out more about licensed trades in NSW.

How to assess, choose, and hire qualified builders and tradespeople

1

Do your background research

Before hiring a builder or tradesperson, make sure to do some research to find a qualified professional. Start by checking out relevant industry association websites. These associations can help you find licensed and trustworthy individuals or businesses. Some examples of building industry associations include:

Find out more about industry associations.

Verify the business's Australian Business Number (ABN) using ABN Lookup to check they are registered and legitimate. 

If you're hiring a builder, you can visit the iCIRT Register, where you can search for rated professionals. For more information on iCIRT, visit our guide on iCIRT.

You can also check the register of building work orders to identify if a builder has any current orders or restrictions on their projects.

2

Verify your tradesperson or builder's licence

Make sure your contractor is properly licensed and they have all the required qualifications to complete your project. Use the Verify NSW website to look up your contractor's name or licence number to make sure their licence is valid.

Check a licence

3

Ask questions to evaluate your tradesperson or builder

To help you hire the right professional for your project, you should ask these questions to assess their suitability:

  • Can I see reviews or references from previous clients?
  • Was the project finished on time and within budget?
  • Were defects addressed promptly?
  • What other jobs are you currently working on?
  • Who will supervise the work? Check that they have relevant experience and appropriate licence, such as a current Supervisor Certificate from Building Commission NSW.

See more detailed questions to ask your builder or tradesperson before hiring.

4

Check insurance to protect your investment

To safeguard yourself and your property, check that your contractor has the appropriate insurance in place:

  • Home Building Compensation Fund Insurance: Required for projects over $20,000. Contractors must obtain this cover before starting any work or accepting any payment, including deposits. You can verify your contractor’s insurance using the Home Building Compensation Check.
  • Public Liability Insurance: Covers damage to your property or injury to others.
  • Workers Compensation Insurance: Protects workers on-site.

If you're unsure about the insurance documents or if they meet NSW legal requirements, consider consulting a legal professional to check them for you.

For more information, read our overview of certificates and insurance requirements.

5

Review and understand your contract

A written contract is mandatory for work exceeding $5,000. Contracts help protect your interests by setting clear terms on costs, timelines, and expectations.

Key points for your contract:

  • Cost: Check that total costs are clearly outlined. Watch out for 'provisional cost items,' which may vary based on site conditions.
  • Timeline: Include realistic start and completion dates, accounting for potential delays.
  • Cleaning: Confirm who is responsible for site clean up.
  • Defective work: Discuss how issues will be resolved if work is not up to standard.

You should consider having a legal professional review the contract before you sign it.

For additional guidance, visit the Contracts page.

6

Formalise your agreement with a signed contract

Once you’re confident in your choice, sign the contract. A signed contract helps provide clarity for both you and the contractor. It's important to include all agreed terms such as:

  • payment schedules tied to progress milestones
  • a clear scope of work defined to avoid misunderstandings
  • timelines, including allowances for delays.

A signed contract protects you and the contractor by making sure you both agree on the terms. Use the contract checklist for owners entering a building contract to confirm everything is covered.

Understanding deposit limits

Under the Home Building Act 1989 Section 8, deposit limits are in place to safeguard homeowners.

  • For contracts valued at $20,000 or more, the maximum deposit is 10% of the total contract price.
  • For contracts valued between $5,000 and $20,000, the maximum deposit is also 10%.
  • For contracts under $5,000, there is no specific limit, but terms should be fair and reasonable.

Builders or contractors must not request or accept a deposit higher than these limits. 

Before paying any deposit, make sure that you have a copy of the builder's Home Building Compensation Fund (HBCF) insurance certificate.

This certificate is a legal requirement under NSW law and provides protection in certain circumstances, such as if the builder or contractor cannot complete the work.

For further details, refer to the Home Building Act 1989 and contracts page.

Why licence checks matter

Watch this quick video to understand the key steps in hiring a reliable contractor. Learn from real-life examples and get expert tips to avoid common pitfalls.

2:25

Finding a builder

Read transcript
Video transcript

Finding a builder

When thinking about home renovations, there are many things to consider.

Your choice of building contractor is one of the most important.

Kate and Steve wanted to renovate their bathroom, but didn't know how to find someone to do the job.

In the end, they hired a contractor they found on the internet, but they forgot to check their licence.

And the result was a disaster.

They tried to complain, but unfortunately there is not much that can be done about an unlicensed tradesperson.

Kate and Steve, let's get this fixed up the right way.

First, head to the Building Commission New South Wales website.

When hiring a contractor for building works, you need to check their licences.

To do this, go to the Current and Future Homeowners section of the site and click the link to check a builder's licence.

The next step is to check their insurance.

On the same page, click the link to do a home building compensation insurance check.

Lastly, once you've selected the right contractor, ensure that all aspects of the project, including costs and timelines, are clearly outlined in the contract.

You can find free contract templates by clicking the link on the same current and future homeowners page.

There, that looks better doesn't it?

Now even work from a licensed and insured contractor may not always be perfect, but most will fix any issues if they arise.

In the rare event that the contractor refuses to rectify the issues, Kate and Steve can contact Building Commission NSW for assistance.

Building Commission NSW is committed to helping people avoid the problems that Kate and Stephen encountered and assisting them if problems do arise.

For help with hiring contractors for building works, we have created a resource with all the information you need and some checklists to help you along the way.

For more information, visit the Building Commission NSW website.

You can also call us on 13 27 00 or email us via the contact form on the site.

Home building complaints and enquiries

Home building:Complaints form
Design and Building Practitioners:Enquiries and complaints form
Certifier complaint form:Complaint form
Make an enquiry:Enquiry form

Contact Building Commission NSW

Call:132 700Monday to Friday, 8:30am to 5pm (excluding public holidays)
From overseas, call:+612 3814 0545
Download as PDF Print this page
Top of page