Builders' responsibilities
Responsibilities of a licensed builder
Builders have several professional responsibilities for construction and overseeing building work.
Licensing
You must be licensed to complete work that requires building approval.
Most builders subcontract electricians, plumbers, carpenters, bricklayers and other trades during construction. Builders who subcontracts need to ensure that anyone they employ is appropriately qualified and, if required, is licensed. You can find a professional from our lists of licensed, registered and accredited professionals. Before you employ a professional, you should understand what you need to do when working with them and their professional responsibilities.
Advertising
When a licensed corporation, partnership or individual advertises their construction service, they need to include in the advertisement their name as recorded on their licence, their licence number and for a corporation its ABN or ACN number.
Insurance
Builders must have a residential building insurance policy or a fidelity certificate, which protects the owner against defective and incomplete work. See insurance and warranties.
Builders need to show evidence of the insurance they hold to a client before providing a service. This includes advising the person that they do not have insurance, if that is the case. Builders may ask the client to sign an acknowledgment that they have been told about their insurance arrangements. The acknowledgment must state the time and date it was given. If the client signs the acknowledgement, builders must immediately give them a copy.
Standards and legislation
Builders must complete work and operate according to the relevant legislation, which includes the Building Act 2004 and Construction Occupations (Licensing) Act 2004.
The contract builders sign with their client must:
- be signed and dated by them and their client;
- state the builder's name and the client's name;
- have the address where the work is to be carried out;
- state the builder's licence details;
- state the start and completion dates;
- state the payment arrangements;
- have the plans and specifications attached;
- contain the statutory warranties; and
- display the total contract price.
Notifications, inspections and approvals
Builders need to make an application for a commencement notice to their client's building certifier before they start building work. The client needs to sign this application. The work can start once the certifier has issued the commencement notice. Builders must inform the building certifier when the work requires inspection.
Regulation
Anyone who believes a licensed or formerly licensed builder has not built according to plans, standards or is in breach of legislation may put their concerns in writing by giving us feedback. Complaints may result in disciplinary action.




