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Guide to licensing for building work in South Australia
In this article
Licence requirements
A building work contractor's licence must be obtained from Consumer and Business Services (CBS) when a business or individual carries out any type of building work for another person, or for the sale or lease of land or buildings.
A person or business must not advertise and hold themselves out as being entitled to carry on business as a building work contractor without a proper licence.
Building work
"Building work’ includes:
- constructing, erecting, underpinning, altering, repairing, improving, adding to, or demolishing a building
- on-site work on swimming pools, paving, fencing
- insulation
- painting
- installation of air-conditioning and solar panels
Plumbing, gas fitting and electrical work are also considered building work, but are subject to specialised plumbing, gas fitting and electrical (PGE) licences.
Exclusions
There are some types of work that are not considered ‘building work.’
Pest control and installation and maintenance of security systems are not considered building work. Although a building work contractor licence is not required for these activities, specialised pest control and security agent licences are required.
The installation, maintenance, repair or removal of a floating floor, carpet or vinyl flooring not used for waterproofing is also not considered building work. There are no licence requirements for this type of work.
Permitted work and conditions
The type of work the contractor is permitted to undertake will be outlined on their licence. There may also be conditions on your licence that restrict the type of work you can carry out. Examples include:
- building height
- maximum contract value
- requirements to work in partnership with another person
Subcontractor or employee
If you are subcontracted to do work for other licensed building work contractors, you must have a building work contractor licence for the type of work you are carrying out. However, if you are an employee, then you will not need a licence and can perform work for a licensed building work contractor, unless you are the nominated supervisor.
Supervision requirements
All building work must be supervised by a registered building work supervisor. The approved supervisor must properly supervise all your building work and ensure it meets the required standards. Therefore, the supervisor registration must cover the same type of work you contract for.
Business types
Sole traders
If you apply for a contractor licence as a sole trader, you can also register as a supervisor on the same application or nominate another person to supervise your work.
Partnership
If you operate your business as a partnership, all active partners need to be licensed. However, if you have a business partner whose role is purely administrative, you can apply for an exemption (as a non-active partner).
Company
If you are operating in a company structure, the company will be both the licensed and the contracting entity. The supervisor may be a registered supervisor who is a director or officer, an employee or an independent contractor.
Applying for a building contractor licence
Eligibility requirements
To be eligible for this licence, either the individual applicant, or the company director (where the applicant is a company) must:
- have the relevant qualification, knowledge, and experience.
- hold a current National Police Certificate.
The business must:
- comply with relevant solvency requirements.
- provide evidence of at least $10,000 in net assets (subject to work type).
- nominate a registered building work supervisor; and
- provide a certificate of eligibility for building indemnity insurance if working in ‘major residential construction’.
- HIA provides training and support services to assist members in obtaining the Building Work Contractor’s Licence.
To find out more, contact HIA's Contracts and Compliance team
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