To choose a builder in Sydney, give at least three licensed builders the same written brief and compare their itemised written quotes, not just the totals. Before you sign, the NSW Government guide (updated July 2026) says to check the licence on Verify NSW, get the Home Building Compensation certificate for work over $20,000, and use a written contract with a deposit of no more than 10% and payments tied to stages of work.
- The NSW Government suggests giving at least 3 contractors the same brief so their quotes can be compared.
- A contractor licence is needed in NSW for residential work over $5,000 including GST, and a written contract is needed above that value.
- For work over $20,000, the builder must give you a Home Building Compensation certificate before taking any money.
- The deposit can be no more than 10% on contracts of $5,000 or more, and progress payments should match work done.
- Statutory warranties last 6 years for major defects and 2 years for other defects, even if the contract does not mention them.
What makes a good builder for your job?
A good builder for you holds the right licence for the work, has done similar jobs, carries current insurance and gives a clear written quote. Price matters, but it is only one part of the choice.
In NSW, a builder needs a contractor licence for residential building work worth more than $5,000 in labour and materials, including GST. Licences come in categories. An extension usually needs general building work. Electrical, plumbing, draining, gasfitting and air-con work need a licence at any value.
So when people search for licensed builders in NSW, the real question is: licensed for what? Always check the category matches your job.
How do I choose a builder? A 10-point shortlist
Work through these steps in order. Most of them come from the NSW Government’s step-by-step guide to choosing a builder (updated 22 July 2026).
- Write a job brief. List the rooms, finishes, brand names and models you want, and attach any plans. The NSW Government says to write one no matter how small the job.
- Find at least three builders. Give each one the same brief so their quotes cover the same job.
- Check each licence on Verify NSW. Confirm the name, current status, category, conditions and expiry date.
- Check the ABN on ABN Lookup, and make sure the business name matches the licence and the quote.
- Search the Building Commission NSW register of building work orders for any current orders against the business.
- Ask who will supervise your job, and whether that person holds a current Supervisor Certificate from Building Commission NSW.
- Ask for references or past projects. Did they finish on time and on budget? Were defects fixed promptly?
- Check insurance: Home Building Compensation for work over $20,000, plus public liability and workers compensation.
- Compare itemised written quotes line by line, including allowances, exclusions and timeframes.
- Read the contract before you sign. Check the payment schedule, variations clause and defects process. The NSW Government suggests having a lawyer review it.
The same guide also lists industry associations, such as Master Builders NSW and HIA, as a place to start your background research. Membership is not a licence, so do the licence check anyway.
How do I check a builder’s licence and insurance?
Use the free Verify NSW register for the licence, and HBC Check for the insurance. Both are NSW Government tools and both are free.
For the licence, search by licence number if you can, as many businesses have similar names. Our step-by-step licence guide is at Builders Licence Check NSW: How to Verify a Builder in 5 Steps.
For work over $20,000, ask for the Home Building Compensation certificate and search it on HBC Check at verify.licence.nsw.gov.au/home/HBCF. SIRA says the business name on the certificate should match the name on your contract. Our home warranty insurance guide explains what the cover does: /guides/home-warranty-insurance-nsw/.
Also ask for a certificate of currency for public liability insurance. The NSW Government says that if a builder has none, you could be liable for an injury on your property.
How do I compare builders’ quotes?
Compare what each quote includes, not just the total. A low price can simply mean something has been left out. The NSW Government warns that if your brief is vague, "the quote may only include the cheapest products and materials".
Ask each builder to mark items as included, excluded or an allowance. Then line them up like this:
| Item | What a clear quote shows | What to watch for |
|---|---|---|
| Scope of work | Every room and task, matched to your brief and plans | Vague words such as "renovate bathroom" with no detail |
| Materials and fittings | Brands, models and grades | Substitutes, or "or equivalent" with no limit |
| Allowances (provisional sums and prime cost items) | How each amount was worked out | Low allowances that make the total look cheaper |
| Exclusions | A written list | Council or certifier fees, engineering, rubbish removal or making good left off |
| Timeframe | Start date and duration, with weather allowances | No dates at all |
| Payment schedule | Payments tied to stages of completed work | Large payments before work is done |
| Variations | A written process with price and time for each change | Verbal changes only |
| Licence and insurance | Licence number, and HBC for work over $20,000 | Details missing or not matching the business name |
Based on NSW Government guidance on getting quotes and contracts (checked 20 October 2026).
What are the red flags when choosing a builder?
Most problems show up before you sign. Walk away, or ask hard questions, if you see any of these.
| Red flag | Why it matters | What to do |
|---|---|---|
| Will not give a licence number, or the name does not match | You may be dealing with an unlicensed business | Do not sign. Check Verify NSW |
| Asks for more than a 10% deposit | The legal limit is 10% on contracts of $5,000 or more, and extra may not be recoverable | Pay no more than 10% |
| Wants money before giving an HBC certificate on a job over $20,000 | This is an offence, and the payment may not be protected | Pay nothing until you have the certificate and have checked it |
| No written contract, or pressure to sign on the spot | Work over $5,000 needs a written contract, and over $20,000 you get 5 clear business days to cool off | Take the contract away and read it |
| Licence covers a different type of work | The licence may not allow them to contract for your job | Ask who will do that work and check their licence |
| Payment schedule front-loads the price | Progress payments should match work actually done | Ask for payments tied to completed stages |
| Won’t put variations in writing | Verbal changes cause disputes over price | Insist on signed written variations |
| Door-knocking after a storm with a cheap offer | High pressure makes the checks easy to skip | Get a second quote and run the usual checks |
Sources: NSW Government contracts page (updated April 2026), choosing a builder guide (updated July 2026), SIRA.
On any job over $20,000, the builder must give you a Home Building Compensation certificate before taking a deposit or starting work. If they ask for money first, stop and check.
What questions should I ask a builder before hiring?
Ask the same questions of every builder on your shortlist, and write down the answers.
- What is your licence number, and which categories does it cover?
- Who will supervise my job, and do they hold a Supervisor Certificate?
- Which parts will you subcontract, and are those trades licensed?
- Can I speak to past clients or see similar jobs?
- What other jobs do you have running at the same time?
- Which items in the quote are allowances, and how were they worked out?
- How do you price and approve variations?
- Can I see your HBC certificate and public liability certificate before I pay?
- How do you handle defects after handover?
Should I choose the cheapest builder?
Not on price alone. The cheapest quote is only good value if it covers the same scope, materials and allowances as the others.
If one quote is much lower, ask why. It may leave out items, use lower allowances, or price cheaper materials. Choose the builder whose quote is clear, whose checks come back clean, and who answers your questions well.
What should a building contract include in NSW?
For work over $5,000, you need a written contract. A small job contract ($5,000 to $20,000) must be dated and signed, and must include the licence holder’s name and number, a description of the work and the price if known.
A large job contract (over $20,000) must show the price on the first page, set out the five clear business day cooling-off period and include a progress payment schedule. It must also include a checklist and a note about HBC insurance. The NSW Government says the contractor must give you a copy within five business days of signing.
Statutory warranties apply even if the contract does not mention them. They last 6 years for major defects and 2 years for other defects, from completion.
Get quotes from vetted builders in our crew
Describe your job to MyTradeCrew, and we will send it to up to three vetted, licensed and insured local builders and trades from our crew. They quote and contract with you directly. Use the checklist above to compare them, and run your own licence and insurance checks before you sign.
Frequently asked questions
How many quotes should I get from builders?
The NSW Government suggests giving at least three contractors the same information so you can compare their quotes. Using the same written brief for each one matters more than the exact number. If the quotes are very far apart, ask each builder to explain what they included and excluded.
Should I choose a builder who belongs to HIA or Master Builders?
Membership can be a useful background check, and the NSW Government lists industry associations as a place to start your research. It is not a licence, though. Whether a builder is a member or not, check their contractor licence on Verify NSW and their HBC certificate for work over $20,000.
How much deposit should I pay a builder in NSW?
No more than 10% of the contract price for contracts of $5,000 or more. Under $5,000 there is no set limit, but terms should be fair and reasonable. For work over $20,000, pay nothing until you have the Home Building Compensation certificate and have checked it on HBC Check.
What is a Supervisor Certificate?
A Supervisor Certificate from Building Commission NSW shows a person is qualified to supervise building or trade work in a category. The NSW Government suggests asking who will supervise your job and confirming that person has relevant experience and a current certificate, especially when the business owner will not be on site every day.
Can I check if a builder has had problems before?
Partly. Search the Building Commission NSW register of building work orders for current orders. Verify NSW shows the licence status and any conditions. HBC Check lists claims paid on a builder’s insurance certificates. Ask for references from recent clients too, and ask how defects were handled.
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