Builder Registration

Before entering into a building contract, one of the most important steps a homeowner can take is to carry out proper due diligence on their builder. This process is often overlooked, particularly where a builder comes recommended or has an established brand, but checking the builder’s legal status and registration is a critical first step in protecting yourself during a build.

In Victoria, building practitioner registration is maintained by the Building and Plumbing Commission or the BPC, which was formerly known as the Victorian Building Authority or the VBA. The Commission maintains a public register of building practitioners that shows who is registered, what class of registration they hold, and what work they are legally entitled to carry out. This register is the primary source when it comes to determining whether a builder is authorised to perform domestic building work.

The most common registration class homeowners will encounter is Domestic Builder Unlimited (‘DB-U’). A builder holding a DB-U registration is authorised to carry out domestic building work of any value. This is particularly important because section 29 of the DBCA requires that any domestic building work with a value exceeding $10,000 must be carried out by a registered builder. If the work exceeds that threshold and the builder is not appropriately registered, the contract may be unlawful and expose the homeowner to significant risk.

Where the builder is operating through a company, the registration will usually appear as a CDB-U, which stands for Company Domestic Builder Unlimited. A DB-U registration applies to an individual, whereas a CDB-U applies to a company. When a company applies for registration, it must nominate a director who personally holds the relevant individual registration. This person is known as the nominee director. In practice, this means that the company’s ability to build is dependent on the ongoing registration status of that nominee. The practitioner register allows homeowners to see not only the company’s registration, but also who the nominated individual is.

Another registration category that appears frequently is Domestic Builder Limited, or DB-L. A limited registration means the builder is restricted to specific types of work. For example, a DB-L registration may be limited to concreting, bricklaying, or other defined scopes of work. A builder holding a limited registration is not authorised to carry out all forms of domestic building work, and homeowners need to ensure that the scope of work they are engaging the builder for actually falls within the limits of that registration.

Checking the practitioner register is an opportunity to verify that the registration class matches the work being proposed and that the registration is current. Where a company is involved, it also allows homeowners to identify the nominee director and confirm that the individual underpinning the company’s registration is properly registered.

Beyond registration itself, another important due diligence step is to review the disciplinary register maintained by the Building and Plumbing Commission. This register records disciplinary action taken against building practitioners. While the existence of a disciplinary record does not automatically mean a builder should be avoided, it is relevant information that homeowners should be aware of before entering into a contract.

Where the builder is a company, it is also prudent to carry out a basic company search through the Australian Securities and Investments Commission (‘ASIC’). This allows homeowners to confirm that the company is properly registered, active, and compliant with its corporate obligations. While the legal requirements for company registration are extensive, a company that is not properly registered with ASIC is a significant red flag and warrants further investigation before proceeding.

Confirming a builder’s registration, understanding the scope of that registration, checking for disciplinary history, and verifying the company’s corporate status are all simple steps that can significantly reduce risk. These checks help ensure that the builder is legally entitled to carry out the work and that the homeowner is entering into a contract with eyes open.