Skip to main content

Don’t lend your builder licence

August 19, 2019

Have you been asked to supply your builder licence number on a job for which you have little to do with? Maybe you have been asked to arrange the home building compensation cover (warranty insurance) but you are not the builder on the job.

If you are not going to be the builder on the project but you have been approached to be the builder on ‘paper’ – such as being asked to supply your licence number on the construction certificate as the builder, or to take out insurances because the other person or business cannot get such insurances, then take great caution!

It is an offence to lend your licence – not only may you be subject to penalties and risk your livelihood, but by freely providing your licence to someone who does not have a licence, you are allowing potential cowboys to enter and operate in the industry who may bring it into disrepute.

If you have been approached it is probably because the other person or business who will be coordinating the job, supervising trades and receiving the financial benefits for such role has no licence or is not eligible for Home Building Compensation (HBC) cover.

From a liability perspective, if you agree to put your builder licence number on a contract or allow your licence number to be applied to a construction certificate but do not actually perform any of the work, or supervise it, you would be seen as the builder regardless and liable if there are any issues with the work.

Similarly why would you take out insurance to cover work that you did not perform or manage? It is the obligation of the person or business that directly contracts with the home owner to have a current licence in that person’s or business’ name that covers the scope of work to be performed, to have eligibility for HBC and to arrange the insurance if the project requires it. 

So if someone wants to borrow your licence, think twice and don’t risk it. 

For more information on this topic please contact your workplace adviser on 1300 650 620