Home Building Compensation Fund (HBCF)

Home Building Compensation Fund cover needs to be provided before licensed builders and trade contractors can contract to work on certain residential building jobs.

Home Building Compensation Fund cover must be held before licensed builders and trade contractors start work or take any money (including deposit) where:

  • work is contracted with a homeowner, an owner builder or a developer, and
  • the contract price or market cost of labour and materials is over $20,000.00 (including GST).

There are some exceptions from the requirement for Home Building Compensation Fund cover. Details are outlined on the Service NSW website.