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What happens if I engage an unlicensed contractor? « Home Building Online News

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What happens if I engage an unlicensed contractor?

Under home building laws, a builder must ensure that all persons that he engages to perform ‘residential building work’ hold the appropriate licence as issued by Fair Trading (this does not apply where the person being engaged is actually an employee of the builder).

If the builder engages a contractor that does not hold the appropriate licence, then not only will the builder be liable to pay a fine of up to $110,000, but the builder will not be able to claim damages or enforce the contract against the client.  However, that client is still allowed to claim damages or enforce the contract against the builder.

Our advice – make sure every contractor on your site holds the appropriate licence!

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This entry was posted on Thursday, January 14th, 2010 at 9:04 am and is filed under General. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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