Before you sign a building contract in NSW: six checks every homeowner can do

Signing a building contract is one of the biggest financial decisions most families make. A few hours of checking before you sign can save a lot of stress later.

The NSW Government publishes a step-by-step guide to choosing a builder or tradesperson. Based on that guide, here are six checks any homeowner can do, most of them free and online.

1. Check the licence

Every builder doing residential building work in NSW needs the right licence. You can search by name, licence number or ABN using the NSW Government’s builder and tradesperson licence check (Verify NSW). Make sure the name and licence on the contract match what the register shows.

Licensing checks have tightened. Since 23 June 2026, most new applications for contractor licences, qualified supervisor certificates and tradesperson certificates need a National Police Certificate, according to Building Commission NSW.

2. Search the public registers

The NSW Government guide suggests three more searches:

• ABN Lookup, to confirm the business is registered.
• The iCIRT register, where you can search for rated building professionals.
• The register of building work orders, to see whether a builder has current orders against their work.

A builder not appearing on a rating register is not in itself a problem, but current orders are worth asking about.

3. Check the insurance before any money changes hands

For residential building work over $20,000, the builder must have Home Building Compensation Fund (HBCF) insurance before starting work or accepting any payment, including a deposit. The guide recommends getting a copy of the HBCF certificate before you pay anything, and verifying it with the Home Building Compensation check. It also suggests confirming public liability and workers compensation insurance.

4. Read the contract carefully

A written contract is required for work over $5,000. The guide suggests checking:

• the total price, including any provisional cost items, which are estimates that can change
• realistic timelines, with allowance for delays
• a clear scope of work
• who is responsible for site clean-up
• how defective work will be handled.

It also suggests having a legal professional review the contract before you sign.

5. Know the deposit limit

Under the Home Building Act 1989, as summarised in the guide, a builder must not ask for or accept a deposit of more than 10 per cent of the contract price for contracts over $5,000. Progress payments should then be tied to clear stages of work.

6. Ask who will run your job

Ask for references, whether past projects finished on time and on budget, how defects were dealt with, and how many other jobs the builder has under way. Most importantly, ask who will supervise your build day to day, and check that person’s experience and qualified supervisor certificate.

How BND Custom Homes can help

BND Custom Homes holds NSW Builder Licence 488888C, which you can check on the NSW licence register. We are happy to walk you through our licence, insurance and contract before you commit, and to explain how we build, from first consultation to handover, whether you are planning a custom home or a renovation or extension.

Next step

If you are comparing builders, book a consultation and bring your questions. Call 0489 034 567.

This article is general information only. It is not legal, financial or building advice. Requirements and thresholds can change. Check the official sources linked in this article and get independent legal advice before signing a building contract.