If you’re planning to work as a sole trader in the construction industry in New South Wales (NSW), an Individual Contractor Licence is essential to operate legally. This guide will help you understand:

1. What is an Individual Contractor Licence?
2. Trade Contractor Licence (e.g., Waterproofing, Carpentry)
3. Builder Contractor Licence (General Building Licence)
4. Example Scenarios for Each Licence Type
5. Who Can Apply and what are the Requirements
6. Application Process

🔹 What is an Individual Contractor Licence?

An Individual Contractor Licence is a business licence issued by NSW Fair Trading that allows sole traders to:

• Contract work over $5000 (including labour and materials)
• Advertise their services legally
• Quote, manage, and perform work depending on their licence class

It is a requirement by law if you are operating as a sole trader and taking on:

• General Building Work
• Trade Work (like Waterproofing, Carpentry, Tiling)
• Specialist Work (Electrical, Plumbing, Gas Fitting, etc.)

Types of Licences Under Individual Contractor Licence

1. Trade Contractor Licence (e.g., Waterproofing, Carpentry)

This licence is for individuals who specialise in a specific trade, such as waterproofing, carpentry, tiling, or painting. It allows you to legally advertise, quote, and undertake work exceeding $5000, or for specialist trades like waterproofing, even for jobs below $5000.
For individuals who specialise in a specific trade.

• Scenario: Waterproofing Specialist
  • Sarah wants to perform waterproofing for bathrooms and balconies.
  • Some of her projects are under $5000, but waterproofing is a specialist trade, so she must hold an Individual Contractor Licence – Waterproofing Class.
  • Required Qualification: Certificate III in Construction Waterproofing (CPC31420).
  • Experience: Minimum 2 years.
• Scenario: Carpentry Contractor
  • Daniel specialises in timber deck installations and wall framing.
  • His projects cost $7000 – $15,000.
  • He must apply for an Individual Contractor Licence – Carpentry Class.
  • Required Qualification: Certificate III in Carpentry (CPC30220).
  • Experience: Minimum 2 years.

Key Point: Trade Contractor Licences are required for projects over $5000, or for specialist trades (like waterproofing) regardless of project value.

2. Builder Contractor Licence (General Builder Licence – Building Class)

This licence is for sole traders who want to manage and contract entire building projects, such as renovations, extensions, and new home constructions. It is required for structural work and large-scale projects where you oversee various trades.

Note: If you hold a Builder Contractor Licence – Building Class, you are allowed to manage and subcontract waterproofing work as part of a building project. However, if you plan to personally perform the waterproofing work, you must hold the Certificate III in Construction Waterproofing (CPC31420). For contractors who only intend to offer waterproofing services independently, a Trade Contractor Licence – Waterproofing Class is required.

• Scenario: General Builder
  • Michael plans to manage structural home renovations, including removing load-bearing walls and constructing second-storey additions.
  • His projects range from $50,000 to $150,000.
  • He needs an Individual Contractor Licence – Building Class (General Building Work).
  • Required Qualification: Certificate IV in Building and Construction (CPC40120) minimum. Diploma of Building and Construction (CPC50220) is recommended.
  • Experience: years of experience in the building industry.
  • Must hold Home Warranty Insurance for projects exceeding $20,000.

Key Point: You need a Builder Contractor Licence – Building Class to manage full building projects. A trade licence alone is not enough.

3. Specialist Work Contractor Licence (Electrical, Plumbing, Gas Fitting)

This licence is for individuals performing regulated specialist work like electrical, plumbing, and gas fitting. These trades require a licence regardless of the project value, due to safety regulations.
For individuals performing regulated specialist work.

• Scenario: Electrical Contractor
  • Lisa is an electrician who wires residential homes.
  • Regardless of project value, electrical work requires licensing.
  • She must apply for an Individual Contractor Licence – Electrical Class.
  • Required Qualification: Electrical Licence (gained through apprenticeship + licensing exam).
  • Experience: 2 years minimum.

Key Point: Specialist work like electrical, plumbing, or gas fitting requires a licence even for small jobs.

🔹 Who Can Apply?
You must:

• Be an individual sole trader.
• Be considered a fit and proper person (no serious criminal or insolvency history).
• Hold the required trade qualification (Certificate III for trades, Certificate IV/Diploma for builders).
• Have 2-4 years of industry experience.

🔹 Application Requirements

• Proof of Identity (Passport, Driver’s Licence)
• Trade Qualification Certificate
• Work Experience References (contracts, invoices)
• Insurance Documents (Public Liability, Home Warranty if applicable)
• Passport-size photograph

🔹 Responsibilities Once Licensed

• Display your Licence Number on all advertising.
• Use written contracts for projects over $5000.
• Comply with Building Codes, WHS Laws, and insurance obligations.
• Renew your licence before its expiry.

Verify licences here:

• NSW Licence Checker

🔹 Summary Table

🔹 Conclusion

If you’re working as a sole trader in NSW, it’s important to hold the correct Individual Contractor Licence for your trade or building class. Either you specialise in Waterproofing, Carpentry, or manage entire Building Projects, ensure you meet the qualification and experience requirements to legally operate, protect your business, and build trust with clients.

🔗 Useful Links

• Apply for Individual Contractor Licence – Service NSW
• ABLiS NSW Licence Fees