Builder Checks questions

11 answered questions about builder checks for Australians building a home.

What regulatory checks should I complete before appointing a builder?

Before appointing a builder, you should check more than whether they simply hold a current licence.

Depending on your state or territory, relevant checks may include:

  • current builder licence or registration
  • licence class and permitted scope of work
  • licence conditions or restrictions
  • disciplinary history
  • rectification directions or orders
  • stop-work or prohibition orders
  • licence suspensions or cancellations
  • public warnings or enforcement action
  • company and ABN details
  • applicable home warranty or domestic building insurance requirements.

The information available varies between jurisdictions, so you may need to check more than one official source.

Where can I check my builder?

Use the official regulator for the state or territory where your project is located:

Click links below

Where available, review the builder's full licence or regulatory history, rather than checking only whether their licence is currently active.

Does a rectification order mean I should not use the builder?

Not automatically.

A regulatory record should be considered in context.

The nature of the problem, how the builder responded, whether the matter was rectified and whether there is a pattern of similar issues can all be relevant.

For significant matters, consider obtaining independent professional or legal advice before entering into a building contract.

Does every state publish building work orders?

No.

The amount of information publicly available differs significantly across Australia.

Some states maintain public enforcement or disciplinary registers. Others record regulatory action against a builder's licence, while some building orders may be administered by local councils, building surveyors or other authorities.

For this reason, the absence of an order from an online search should not automatically be treated as confirmation that no regulatory action has ever occurred.

If no adverse record appears, does that mean the builder has a clean history?

Not necessarily.

A search may show that no adverse record was identified in the particular public register you checked, but that does not prove the builder has never been:

  • the subject of a complaint
  • involved in a building dispute
  • required to rectify defective work
  • investigated by a regulator
  • involved in previous construction defects
  • subject to action that is no longer publicly displayed.

A more accurate conclusion is:

No adverse record was identified in the public registers searched at the time of the check.

Is checking a builder's licence enough?

No.

A current licence generally confirms that the builder is authorised to undertake a particular category of building work.

It does not necessarily tell you about:

  • quality of previous work
  • financial stability
  • current workload
  • previous disputes
  • defect history
  • subcontractor performance
  • project delays
  • communication or contract administration.

Regulatory checks should therefore form part of a broader builder due diligence process.

Should I save evidence of the checks I complete?

Yes.

Consider keeping a record showing:

  • which register was checked
  • the date of the search
  • the builder or company name searched
  • licence or registration number
  • the result
  • copies or screenshots of any important records.

This can provide a useful record of the due diligence undertaken before appointing the builder.

What is a building work or rectification order?

A building work or rectification order is a formal regulatory action requiring a builder, developer or other responsible party to take particular action.

Depending on the jurisdiction, this may include:

  • rectifying defective work
  • stopping building work
  • addressing non-compliant work
  • complying with conditions imposed by the regulator
  • preventing further work until identified issues are resolved.

Different states and territories use different terminology and regulatory processes.

What other builder due diligence should I complete?

Regulatory searches should form part of a broader assessment.

Depending on the project, consider checking:

  • builder licence and registration
  • ABN and ASIC company information
  • appropriate insurance
  • home warranty or domestic building insurance requirements
  • references from previous clients
  • previous completed projects
  • financial capacity where appropriate
  • proposed project team
  • current workload
  • tender qualifications and exclusions
  • proposed subcontractors
  • contract terms
  • programme
  • previous disputes or regulatory action.

What should I look for in a builder's regulatory history?

Look at the circumstances rather than simply whether an entry exists.

Consider:

  • what the regulatory action related to
  • when it occurred
  • how serious the issue was
  • whether the builder complied with the direction or order
  • whether the matter was resolved
  • whether similar issues have occurred repeatedly
  • whether restrictions remain on the builder's licence.

An isolated historical matter may be very different from repeated or recent regulatory action.

When should I perform builder regulatory checks?

Ideally, complete these checks before:

  • shortlisting a builder
  • accepting a tender
  • signing a building contract
  • paying a substantial deposit.

You may also wish to repeat the checks before construction commences or during a long-running project.

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