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How To Start A Residential Construction Business?

How To Start A Residential Construction Business?

Looking to start a residential construction business? Not sure where to start? This article explains how start a residential construction business!

30th September 2019

Constructing dreams

Are you trying to start a residential construction business? Ready to become your own boss? Starting a residential construction business can be lucrative. Plumbing services are one of the most in-demand trades in Australia. However, like starting any business, it can be daunting, particularly when it comes to the paperwork. From a legal perspective, it is essential to consider what documents you need to comply with legislation. This article examines how to start a residential business.

Register your residential construction Business

Furthermore, all Australian businesses require registration. This is your main port of call when starting a residential construction business. There are generally three kinds of business structures that can be registered. These include a sole trader, partnership, or company. Choosing the right business structure may be one of the most important decisions that you can make. The types of registration can affect your tax assessment, your personal income liability if your company becomes insolvent. In order to create the rest of the documents, you will require a registered business for your construction company.

Residental construction license.

Before you even begin considering starting a plumbing business, consider the types of licenses required. In NSW, a construction company will require a license if they are the work is:

  • Valued at more than $5000 (incl GST) in labour and materials. A general builder may do any work that is residential building work;
  • any work involved in constructing a dwelling, or altering or adding to a dwelling. See the full list of definitions at Fair Trade NSW. 

Search for your state registration body to see which specific licenses as are necessary for each state, Eg. Fair Trade NSW.  In NSW, you can apply for a contractor licensequalified supervisor certificate, and endorsed contractor license. A company contractor license is the highest grade of permit and will most likely be the most appropriate license type if you are seeking to start a residential construction business. You may also wish to consider the regulation for each state and territory.

Work Health and Safety Procedures

All residential construction businesses will require safety documents and policies to ensure that they protect themselves from liability. If completing dangerous work in NSW, contractors will be required to complete a SWMS document detailing the safety risks in every job they complete. Residential construction businesses should also consider creating a Work Health and Safety policy for their employees. There are a variety of other safety documents which can be examined Safe Work NSW An essential aspect of protecting yourself is ensuring the company has general liability insurance. The types of insurance can include indemnity insurance, contract works insurance, and public liability insurance.


By now, you have completed the necessary steps required to start a plumbing business. There are specific steps you can take to continue growing your business. Running a business requires you to have practical skills in your field; it also requires management, organisational, and communication skills. If you choose to expand your business, you may need to grow your staff. For example, if intending to hire staff, employment and sub-contractor agreements will be required. Always consider seeking small business legal advice if you need any assistance in growing your business. A construction lawyer can provide you with the necessary information to help you grow and protect your business.

Build the future

While it may be scary starting a business, it can be one of the most rewarding challenges you can undertake in your life. Always consider your legal requirements when starting a business. Never be afraid to ask for help when starting out. Best of luck starting your residential construction business empire.

Joshua Cutrone

Josh is a Legal intern at Lawpath. He is a Commerce/Law student at Macquarie University. He has an interest in cyberlaw and blockchain technology.