WA Builder Change on a $20,000+ Project: Who Must Get HII?

For residential building work valued at more than $20,000, a builder change during construction and before completion means the proposed new builder must obtain an HII certificate for the proposed building work or required stage and give the owner a copy. The WA Government’s guidance, published 20 May 2025, advises the new builder to also give the permit authority a copy (figures checked 1 October 2026).

What must the new builder’s HII cover?

The HII certificate must relate to the proposed building work or the stage required from the proposed new builder. If the incoming builder will complete only part of the project, ask which remaining work or stage the certificate covers.

The cited guidance does not describe an automatic transfer of the former builder’s certificate. It places the obligation to obtain the new certificate on the proposed new builder, so the owner should not treat the former builder’s certificate as evidence that the incoming builder has complied.

The broader requirement also applies before a builder starts work or claims payment: for residential building work over $20,000, the builder must obtain the certificate before commencing work under the contract or claiming payment from the owner.

What protection does HII provide?

The WA Government explains that HII can protect an owner from losing a deposit or suffering other financial loss if the builder cannot complete the work or meet a valid claim for faulty or unsatisfactory building work because a “relevant circumstance” exists.

Examples of a relevant circumstance include:

• an individual builder dying, disappearing or becoming insolvent;
• a non-individual builder, such as a corporation, ceasing to exist or becoming insolvent; or
• the State Administrative Tribunal cancelling the builder’s registration, or the Building Services Board not renewing it, because the builder failed to meet financial requirements prescribed under the Building Services (Registration) Act 1991 (WA).

That protection is conditional. An HII certificate should therefore be checked for the correct document, issuer, relevant work or stage, and register details rather than treated as a blanket guarantee that every building issue will be paid.

How can an owner check the certificate and QBE register?

Before granting a building permit for residential building work valued at more than $20,000, the permit authority must ensure that the required HII certificate was submitted by the builder, is watermarked, was issued by QBE and matches QBE’s records. It must also ensure that an HII eligibility certificate or construction/public liability insurance certificate was not supplied instead.

Owners can use the following checks:

The QBE register has two stated uses: confirming that the builder-provided certificate was issued by QBE and comparing its details with QBE’s records. If the certificate is missing, the issuer does not match or the details do not align, ask the builder to resolve the discrepancy or contact Building and Energy before treating the requirement as satisfied.

Why should a copy also go to the permit authority?

The builder-change requirement expressly says the proposed new builder must provide a copy to the owner. It describes giving another copy to the permit authority as advisable, rather than stating that this additional copy is mandatory after a builder change.

Providing it still has practical value: the permit authority can see the certificate connected with the approved residential building work and compare the document details with its records. Owners should therefore ask the incoming builder whether the authority copy has been provided and keep their own copy of the certificate.

This advice should not be confused with the permit authority’s separate role before it grants the original building permit. The cited guidance does not say that sending the copy alone replaces the permit process or creates a new permit approval.

What if the new builder says the work is exempt?

If there is uncertainty about an HII exemption under the Home Building Contracts (Home Indemnity Insurance Exemptions) Regulations 2002, check with Building and Energy rather than relying only on the builder’s view. Building and Energy can also advise which HII providers are approved.

For more information, the WA Government lists Building and Energy’s phone number as 1300 489 099 and its email address as bcinfo@demirs.wa.gov.au.

What should readers confirm before relying on the certificate?

Check the current WA Government regulator information and the builder’s policy Product Disclosure Statement (PDS). The certificate demonstrates that HII has been obtained for the relevant work, while the PDS explains the policy’s terms.

This article provides general information, not financial or legal advice. A project’s value, stages, exemption status and insurance requirements should be confirmed against the current regulator guidance and the applicable policy documents.

Sources

• Home indemnity insurance – a reminder about your obligations

FAQ

Does the original builder’s HII automatically cover the new builder?

The cited guidance does not describe an automatic transfer. It says the proposed new builder must obtain an HII certificate for the proposed building work or required stage and provide a copy to the owner.

Must the owner send the new certificate to the permit authority?

The builder-change passage requires the new builder to give the owner a copy. It advises the new builder to also provide the permit authority with a copy, so the owner should ask whether this has been done without describing that additional step as mandatory on the evidence provided.

Is an HII eligibility certificate enough?

No. The WA Government says the permit authority must ensure the builder has not supplied an HII eligibility certificate, construction/public liability insurance certificate or another document instead of the required HII certificate of insurance.

Who can resolve uncertainty about an HII exemption?

Check with Building and Energy if there is uncertainty under the Home Building Contracts (Home Indemnity Insurance Exemptions) Regulations 2002. Building and Energy can also advise of approved HII providers.