In NSW you need a licence to contract for residential building work worth more than $5,000, counting labour and materials with GST included. Work at or below that figure does not need a contractor licence, though some specialist trades are licensed separately at any value. Contracting above the threshold without a licence carries penalties of up to $22,000 for an individual and $110,000 for a company. This guide covers what the licence is, how you qualify, and what it commits you to once you have it.
The short version
Three credentials: an individual contractor licence, a company or partnership contractor licence, and a qualified supervisor certificate. To qualify as an individual you need a recognised qualification (Certificate IV in Building and Construction plus a trade certificate or diploma, a four-year construction degree, or a degree plus Certificate IV) and at least two years’ relevant experience, most of it in the last ten years. Licences run 1, 3 or 5 years, and from the day you hold one, 12 CPD points a year are a condition of keeping it.
The three credentials
| Credential | Who holds it | What it allows |
|---|---|---|
| Individual contractor licence | A person | Contract directly with owners for residential building work and supervise it |
| Company or partnership contractor licence | A company or partnership | Lets the entity contract; it must nominate a qualified supervisor |
| Qualified supervisor certificate | A person | Supervise residential building work; be the nominated supervisor on a company or partnership licence. Does not itself allow contracting with owners |
Most sole traders hold an individual contractor licence. Most companies hold a company licence with one of the directors or a senior employee holding the supervisor certificate behind it.
How you qualify
Qualification
One of three pathways:
- Certificate IV in Building and Construction, together with a relevant trade certificate or a diploma.
- A four-year construction-related degree.
- A degree plus the Certificate IV.
Experience
A minimum of two years’ relevant industry experience, with the majority of it within the last ten years. The experience has to be in the kind of work the licence covers, and it has to be documented: referees who can confirm what you did and when, not just where you were employed.
Application
Applications go through the NSW Government, with evidence of the qualification, the experience, identity and, for a contractor licence, the financial and insurance matters that attach to contracting. Requirements and forms change, so use the current NSW Government licensing page as the source rather than a summary, including this one.
Licence terms
Licences are issued for 1, 3 or 5 years. A longer term costs more up front and saves the renewal paperwork, but it does not reduce anything else: the CPD requirement is annual across every year of the term, and it is easy to reach year three with an empty diary because nothing is lodged in between.
What the licence commits you to
- Continuing professional development. 12 CPD points in the 12 months before each renewal, on at least one of eight approved topics, at 1 point per hour for interactive learning or 2 for assessed RTO or university learning. Self-recorded, kept for three renewal periods, audited by Building Commission NSW. Renewal or restoration is refused if the points are not there. The complete NSW CPD guide covers it end to end.
- The Home Building Act. Statutory warranties, contract requirements, and the obligations that follow from contracting with owners.
- Staying licensed. Renew before expiry. An expired licence has to be restored, and restoration is also refused if the CPD requirement is unmet.
Checking a licence: the public register at verify.licence.nsw.gov.au shows any licence by name or number, with its classes, expiry date, conditions and disciplinary history. Owners use it; so should anyone subcontracting.
Newly licensed? Start the CPD clock now
The first CPD year runs to the first renewal date, and the habit is easier to build in year one than to recover in year three. Twelve points is twelve hours of interactive learning. Pick the topics that match the work you are about to take on, keep the diary from the first course, and set a reminder a month before each renewal anniversary. PointCPD courses are filed under the eight NSW topics, bank at least 2 points each, and issue a certificate with every field an audit asks for. Browse them by topic.
Questions builders ask
Can I do small jobs without a builder licence in NSW?
Residential building work worth $5,000 or less in labour and materials (GST included) does not need a contractor licence. Anything above that does, and some specialist work is licensed separately regardless of value. When in doubt, check the current threshold and the specialist categories on the NSW Government licensing page.
How do I check whether a builder's licence is current?
Search the public register at verify.licence.nsw.gov.au by name or licence number. It shows the licence classes, expiry, conditions and any disciplinary history.
Once I have the licence, what ongoing obligations are there?
The main annual one is CPD: 12 points in the 12 months before each renewal, on the eight approved topics, self-recorded and audited. Renewal is refused if it is not met. The complete NSW CPD guide covers it.
Sources: NSW Government, General building work licensing; NSW Government, Continuing professional development for builders and swimming pool builders; Home Building Act 1989 (NSW).