What Happens If a Builder Does Not Complete CPD?

Most NSW builders know they need CPD points. Fewer know exactly what happens when they don’t complete them. The consequences range from a delayed licence renewal to serious legal exposure — and none of them are worth the risk.

This article explains the real-world outcomes of not completing your CPD requirements as a licensed builder or pool builder in NSW, and what you can do if you’re behind.

What Is the CPD Requirement for NSW Builders?

Under the NSW Fair Trading continuing professional development framework, all licensed builders and swimming pool/spa builders must complete 12 CPD points per licence year. This is a mandatory requirement under the Home Building Act 1989 (NSW) and is not optional.

The 12 points must come from activities within the 8 approved CPD learning areas: technical skills, sustainability, business management, WHS, legal and regulatory compliance, customer service and dispute resolution, digital literacy, and risk management.

Completion must be verified before you can renew your contractor licence. If you haven’t done it, the consequences kick in at renewal — and they can have real impact on your business.

What Happens at Renewal If You Haven’t Done Your CPD?

When you apply to renew your NSW builder’s licence, NSW Fair Trading checks your CPD completion records. If the required 12 points aren’t recorded against your licence for the relevant licence period, your renewal application will not be approved.

This means your licence renewal is blocked — not delayed, not automatically extended. Your licence will lapse at its expiry date if you haven’t met the CPD requirement and submitted your renewal on time.

What Happens If Your Builder’s Licence Lapses?

A lapsed licence is a serious situation. Under the Home Building Act 1989, it is an offence to carry out or advertise to carry out residential building work in NSW without a valid contractor licence. This applies even if you’ve been a licensed builder for 20 years — once the licence lapses, you’re unlicensed in the eyes of the law.

The practical consequences of a lapsed licence include:

• You cannot legally accept new residential building contracts until your licence is reinstated
• Existing contracts may be in jeopardy — a homeowner could use your unlicensed status to dispute payments or void a contract
• Your home warranty insurance cover (required for most residential building work over $20,000) is tied to your licence — a lapsed licence creates insurance exposure
• NSW Fair Trading can take compliance action against builders operating without a valid licence

What Are the Penalties for Unlicensed Building Work in NSW?

NSW Fair Trading takes unlicensed building work seriously. Under the Home Building Act 1989, the penalties for carrying out or contracting to carry out residential building work without a valid licence are significant:

• Individuals can face fines of up to $110,000
• Corporations can face fines of up to $220,000
• Repeat or serious offences can result in prosecution

These penalties aren’t just theoretical. NSW Fair Trading actively investigates complaints about unlicensed building work. A homeowner, a competitor, or an inspector can trigger an investigation — and “my licence lapsed because I forgot my CPD” is not a defence.

Can NSW Fair Trading Audit a Builder’s CPD Records?

Yes. NSW Fair Trading has the authority to audit CPD records and request evidence of compliance. If you’re audited and can’t demonstrate that you’ve met your CPD requirements, you may face compliance action even if your licence is currently valid.

This is why it’s important to not just complete your CPD, but to keep good records of it. Your CPD provider (such as Builders CPD Online, RTO 91528) records your completions, and you should also retain your own certificates and completion records for the duration of your licence period — and for a reasonable period after.

What If You’ve Already Missed Your CPD — Can You Catch Up?

If your licence hasn’t lapsed yet — it’s still valid but your renewal is coming up — then yes, you can catch up. Here’s the most direct path:

1. Register with Builders CPD Online today at builderscpdonline.com.au/registration
2. Select the 12-point package ($169) or the 36-point package ($449) if you’re renewing a multi-year licence
3. Complete the course materials online — at your own pace, any device
4. Your completion is recorded by Builders CPD Online (RTO 91528) and reported to Fair Trading
5. Submit your licence renewal with confidence

The entire process — from registration to completing your 12 points — can be done in a single day. There’s no need to wait for a scheduled class or travel to a training centre. You can start right now.

What If Your Licence Has Already Lapsed?

If your licence has already lapsed, the process is more involved. You’ll need to contact NSW Fair Trading directly about reinstatement. Depending on how long your licence has been lapsed and the circumstances, you may need to:

• Complete your outstanding CPD before applying for reinstatement
• Pay reinstatement fees in addition to renewal fees
• Satisfy any other requirements Fair Trading imposes

The best advice here is to contact NSW Fair Trading as soon as possible. Don’t continue building work while your licence is lapsed — that exposes you to the penalties described above.

Does Not Completing CPD Affect Your Insurance?

Yes — indirectly, but importantly. Home warranty insurance in NSW (formerly known as home building compensation insurance) is compulsory for most residential building work over $20,000. This insurance is tied to your builder’s licence.

If your licence lapses, your eligibility for home warranty insurance is affected. A project carried out without valid insurance exposes you to substantial financial liability if something goes wrong — regardless of whether the work itself was to a high standard.

This is another reason why keeping your CPD current and your licence renewed isn’t just about ticking a regulatory box — it’s about protecting your business.

How to Stay on Top of CPD Every Year

The best way to avoid the consequences of missed CPD is to build it into your annual business routine. A few practical tips:

• Set a calendar reminder for 90 days before your licence expiry date — check your CPD status at that point
• Complete your CPD early in the licence year — don’t leave it until the last month
• Use an online provider like Builders CPD Online so you can complete your 12 points any time, from any device, without taking a day off work
• Keep your completion certificates in a dedicated folder — digital or physical
• Don’t assume Fair Trading will remind you — renewal notices aren’t always received, and the obligation sits with the licence holder

Frequently Asked Questions