Pre-contract builder checklist.
Licence verification
Builder holds a current contractor licence
Confirm the licence is active on the relevant state licensing authority register. Note the licence class, expiry date and any conditions.
State licensing authority register (e.g. NSW Fair Trading, VBA, QBCC)
Licence class covers the work you are contracting for
Some licence classes restrict the type or value of work the builder may carry out. Confirm the class authorises the specific work in your project.
Licence register — licence class description
No active suspension or conditions that restrict the work
A licence may be active but subject to conditions — for example, a value cap or supervision requirement. Check the full licence record, not just the "active" status.
State licensing authority register
Name on licence matches the name on the contract
The legal entity on the building contract must be the licence holder. If a company is named in the contract, confirm the company holds the licence, not just an individual employee.
Licence register + contract details
Insurance verification
Home warranty insurance certificate provided
In NSW, the builder must provide a Home Building Compensation certificate before taking any money. In VIC, the policy must be in place before work starts or before a deposit exceeding $1,000. Confirm the certificate is genuine via the relevant portal.
icare (NSW), VMIA (VIC), QBCC (QLD), Building and Energy (WA)
Certificate covers the correct property and contract value
The certificate should name the property address, the builder's legal entity, and a sum insured no less than the contract value. A certificate issued for a different property or amount is not valid cover for your contract.
Home warranty insurance certificate
Policy period covers the expected construction period
Check the expiry date on the certificate. If construction is likely to extend beyond the policy period, ask the builder how renewal will be managed.
Home warranty insurance certificate
Builder holds public liability insurance
Home warranty insurance covers last-resort events (death, disappearance, insolvency). Public liability insurance covers damage to persons or property during construction. Ask for the current certificate of currency.
Builder's insurer — certificate of currency
Company and entity checks
ABN is active and entity type confirmed
Search the ABN on ABN Lookup (abr.business.gov.au). Confirm the ABN is active, the entity type (company, sole trader, trust), and the legal name matches the contract.
ABN Lookup — abr.business.gov.au
If a company, ASIC registration is current
Search the company on ASIC Connect. Confirm the company status is "Registered" and not under external administration, in liquidation or deregistered.
ASIC Connect — connectonline.asic.gov.au
Check director history for associated insolvencies
Search each director's name on ASIC Connect to see other companies they are associated with. Look for a pattern of deregistered, liquidated or externally administered companies in the building industry.
ASIC Connect — person search
Contract terms
Contract names the correct legal entity with ABN and licence number
The building contract should state the builder's full legal name (not just trading name), ABN or ACN, and contractor licence number. If these are absent, request they be added before signing.
Contract — check the parties clause
Deposit does not exceed the statutory maximum
In NSW, the deposit for residential work over $20,000 is capped at 10% of the contract price. In VIC, the deposit is capped at 5% for contracts over $20,000 and 10% for contracts under. Check the relevant state legislation for your jurisdiction.
Home Building Act 1989 (NSW), Domestic Building Contracts Act 1995 (VIC)
Statutory warranties are present or applicable by law
In NSW and most other states, residential building contracts must include statutory warranties (completion in a proper and workmanlike manner, materials suitable for purpose, compliance with laws, fitness for occupation). If the contract excludes these, that is a concern.
Home Building Act 1989 (NSW) Part 2C; equivalent state legislation
Variation clauses are clear and reasonable
Disputes about variations are one of the most common sources of building contract litigation. Confirm the contract specifies how variations must be requested and approved, and how the cost will be determined.
Contract — variations clause
Progress payment schedule is clearly defined
The contract should specify the stages at which progress payments are due and what work must be completed before each payment is triggered. Avoid contracts where payment is tied to vague milestones like "substantial completion."
Contract — payment schedule
Risk record checks
Check for tribunal and court decisions
Search the builder's name on AustLII and the relevant state tribunal's published decisions. TrustSignal also aggregates this data. A pattern of rectification orders or money orders from different clients is a relevant signal.
AustLII, NCAT/VCAT/QCAT/SAT decisions, TrustSignal report
Check for ASIC insolvency notices
Search the builder entity and director names on ASIC Published Notices (insolvencynotices.asic.gov.au). Confirm no current voluntary administration, liquidation or receivership is in place.
ASIC Published Notices — insolvencynotices.asic.gov.au
Review commercial credit file signals
A TrustSignal report includes commercial credit file data from Equifax — payment defaults, court writs and judgments. Review for recent adverse entries, particularly from construction-related creditors.
TrustSignal report — credit section
TrustSignal does the aggregation.
The checks in this checklist draw on approximately 30 sources — state licence registers, ASIC, home warranty insurance portals, tribunal and court records, commercial credit bureaus and the PPSR. Doing them manually requires accounts and logins across multiple systems and a significant time investment.
A TrustSignal builder report aggregates the licence, company, insolvency, tribunal, credit and supply-chain record into a single document. You still need to check the specific contract terms against the statutory requirements for your state — TrustSignal does not review contracts.
Run a builder reportContractor licence status and class
Home warranty insurance verification
ABN and company registration
ASIC insolvency notices and company status
Director history across related entities
Tribunal and court decisions
Commercial credit file (defaults, writs, judgments)
PPSR registrations against the builder
Contract terms review
State-specific deposit rules (statutory guidance only)