Most people ask about price first. The question worth asking first is whether the person quoting is licensed to do the work at all — because in NSW that is not a matter of preference, it is a legal requirement.
The $5,000 rule
In NSW you need a contractor licence to carry out, advertise or contract for residential building work valued at more than $5,000 in labour and materials, including GST. That covers general building work and minor trade work alike. A bathroom renovation will exceed this threshold in almost every case.
The penalties are not trivial. Doing unlicensed residential building work carries fines of up to $22,000 for an individual and $110,000 for a company under the Home Building Act 1989.
The $20,000 rule
There is a second threshold that matters more to you as the homeowner. Licensed contractors taking on residential work valued over $20,000 including GST must obtain home building compensation (HBC) cover before starting work or taking any money under the contract — including the deposit.
That cover protects you if the builder dies, disappears, becomes insolvent or has their licence suspended for failing to comply with a money order. It runs for six years for major defects and two years for other losses from the completion date.
If a builder asks for a deposit on a $40,000 bathroom and cannot produce a certificate of insurance for your specific job, that is a stop sign.
Eligibility is not the same as insurance
This trips people up constantly. A builder may hold an eligibility certificate from icare, which means they have been assessed as able to obtain cover. That is not the same as a certificate of insurance, which is issued for your individual project. Ask for the one that has your address on it.
How to check, in about two minutes
- Ask for the licence number — the company's, not just the tradesperson's.
- Search it on the NSW Government public register of licences.
- Confirm the licence class covers the work being quoted.
- Check the licence is current, not expired or suspended.
- For work over $20,000, ask for the certificate of insurance for your job before paying a deposit.
What to expect in a quote
A quote you can actually compare should set out the scope room by room, name what is included and excluded, state the payment schedule, and identify who is doing the licensed trades — the plumbing and electrical work in a bathroom must be carried out by appropriately licensed trades regardless of who is managing the job.
Renova Build's details
Renova Holdings Pty Ltd holds NSW contractor licence 397801C. Our director and builder Alireza Kamalzadeh holds licence 99764S, and Arshia Kamalzadeh holds contractor licence 395823C. We hold Home Building Compensation Fund eligibility with icare NSW to 15 October 2028 for residential building work. You are welcome to verify all of it on the public register before you speak to us.
Sources
- NSW Fair Trading — general building work licences
- NSW Government — categories and classes of building and trade work
- SIRA — home building compensation
- icare — Home Building Compensation Fund
- NSW Government — public register of licences
This article is general information, not legal advice. Thresholds and requirements can change — check the linked NSW Government pages for the current position.
