How To Choose A Demolition Contractor Sydney 5 Checks

Most homeowners compare quotes by price. That’s the wrong starting point. Here’s what to check before you sign anything.

In early 2025, approximately 30 tonnes of demolition waste including asbestos was illegally dumped on public land in Badgerys Creek, western Sydney. The EPA traced it back to a construction site in Leppington through documents found inside the dumped material. The individual responsible received $30,000 in fines. The site operator, who had paid someone to dispose of the waste lawfully, faced serious scrutiny despite not being the one who dumped it.

That’s the reality. When waste is dumped illegally, the paper trail leads back. And under NSW law, that trail can reach the property owner.

You don’t need to be an expert to protect yourself. A licence check takes two minutes. An insurance verification takes one phone call. Asking the right questions before you sign a contract costs nothing. This article walks you through five checks that most homeowners skip and that make all the difference between a clean project and an expensive headache.

Key Takeaways

• Verify the SafeWork NSW demolition licence using the individual’s name, not just the company name
• Ask for three types of insurance: public liability ($20M minimum), workers compensation, and pollution liability
• Confirm the specific licensed EPA facility that will receive your waste before signing anything
• Request a site-specific Safe Work Method Statement within 24 hours of enquiring
• Call at least two references and ask questions that go beyond whether they were happy
• Price comparison only works when both quotes cover identical scope

Step 1: Verify the Licence Before You Read the Quote

This is the single most important check. And it genuinely takes about two minutes.

In NSW, any contractor carrying out structural demolition work must hold a current demolition licence issued by SafeWork NSW. There are two types. A DE1 (unrestricted demolition licence) covers the full range of structural demolition work including multi-storey buildings and structures requiring floor propping. A DE2 (restricted demolition licence) covers a more limited scope, typically load-bearing structures demolished using machinery on ground-level floors. For most residential demolition in Sydney, you want a contractor who holds at least a DE2 licence, and ideally a DE1.

To check, go to service.nsw.gov.au and use the licence check tool. You can search by business name, individual name, ABN, or licence number. Search both the company name and the individual’s name. This matters because demolition licences in NSW are held by named individuals, usually the nominated supervisor, not automatically by the company they work for. A company trading as “XYZ Demolitions” may not hold a licence in its own right. If the supervisor who holds the licence leaves, the company is operating unlicensed unless a new supervisor is nominated and approved.

When you find a valid licence, check that it shows a licence number, the class (DE1 or DE2), a current expiry date, and any conditions attached. A licence renewed from 1 March 2023 onwards will be valid for five years rather than the old two-year term, so an expiry date a few years away is normal.

One red flag worth noting. If a contractor declines to give you their licence number before you request a quote, that is not a minor administrative issue. Licences are public record. There is no legitimate reason to withhold one.

If your project involves asbestos removal, check specifically which asbestos removal licence class the contractor holds. That’s a separate licence from the demolition licence, and the class matters. For a plain-language explanation of what’s required, see our guide to asbestos and hidden hazards in older Sydney homes.

Step 2: Verify Their Insurance. All Three Types.

Most homeowners ask whether the contractor has insurance. That’s the right instinct but the wrong question. What matters is whether they have the right types, at the right amounts, and whether those policies are actually current.

Public liability insurance

This covers third-party injury or property damage arising from the contractor’s work. For residential demolition in Sydney, the minimum you should accept is $20 million. For commercial projects, that figure moves to $50 million. Ask for a Certificate of Currency. Not a policy schedule, not a verbal assurance. A Certificate of Currency is a single document showing the insured party, the policy number, the cover amount, and the expiry date.

Then call the insurer. Give them the policy number and ask two things. Is this policy current? And does it provide the stated cover amount for public liability? This takes about three minutes and confirms what the certificate cannot: that the policy hasn’t lapsed or been cancelled since the document was printed.

Workers compensation insurance

Any demolition contractor with employees is legally required to hold workers compensation insurance in NSW. If a worker is injured on your property and the contractor has no valid workers comp policy, the situation becomes complicated. Verify it the same way. Certificate of Currency, then a call to confirm it’s current and that it covers demolition work specifically.

Pollution liability insurance

This is the one most people have never heard of. Standard public liability policies typically contain pollution exclusions. If asbestos fibres are released during demolition, or if contaminated material affects a neighbouring property, a standard public liability policy may not respond to that claim at all. Contractors who regularly handle asbestos should hold either a pollution extension on their public liability policy or a standalone pollution liability policy. Ask specifically: does your public liability policy cover pollution events, or do you hold separate pollution coverage?

If the answer is “we’re covered, don’t worry about it” without any documentation to back that up, that’s not reassurance. That’s a gap.

Step 3: Ask Where Your Waste Is Going

Demolition waste in NSW is regulated under the Protection of the Environment Operations Act 1997. Contractors must dispose of waste at licensed facilities and must document the transfer. This is not optional, and it’s not the contractor’s problem alone if something goes wrong.

The NSW EPA has confirmed that clean-up notices for illegally dumped waste can be issued to landowners, not just the contractor who did the dumping. The EPA traces waste back through documents found in dumped material, vehicle registrations, ABNs, and job records. In the Badgerys Creek case, investigators found documents inside the dumped waste that led them directly to a construction site in Leppington. The trail exists. And it can reach you.

Before you sign a contract, ask this one question: “Which licensed EPA facility will you use for our demolition waste, and can you give me their EPA licence number or facility name?”

A contractor who knows their business will answer this without blinking. They’ll name a specific facility. They’ll be able to reference it. They haul waste to licensed recyclers and landfills regularly and know exactly where your material is going.

The Environment Protection Legislation Amendment (Stronger Regulation and Penalties) Act 2024 increased maximum penalties for serious illegal dumping offences to $500,000 for individuals and $2 million for corporations. Where asbestos is involved, those figures increase further. GPS tracking requirements for waste transport vehicles are also now in place. The regulatory landscape has changed materially and enforcement is active.

When the job is done, your contractor should be able to provide waste tracking documentation showing where your demolition material went. Concrete, brick, timber, and metals are often recycled rather than landfilled. Either way, there should be a paper trail. If a contractor tells you documentation isn’t available or isn’t standard practice, that is not a contractor you want on your site.

Step 4: Read Their Safety Culture Before the Job Starts

Demolition is classified as high-risk construction work under the Work Health and Safety Regulation 2017. That classification comes with specific requirements around safety planning before any work begins. One of those requirements is a Safe Work Method Statement, or SWMS.

A SWMS is a document that identifies the specific hazards on your site and the controls the contractor will use to manage them. Under the SafeWork NSW Code of Practice for demolition work, licence holders must prepare a site-specific SWMS before starting any demolition work. The key word there is site-specific. A SWMS for your job should name your address, identify the particular hazards present at your site, and describe how they’ll be controlled. Not a generic document with your address typed at the top.

Ask for a SWMS before you sign the contract. A contractor who can’t produce one within 24 hours either doesn’t have one or won’t be using one on your job. Both are problems.

When you read it, look for a few things. Are the hazards specific to your property or generic? Does it mention hazardous materials identified on your site? Is there an emergency contact list? Does it describe the demolition sequence? A generic SWMS that could apply to any job in any suburb is not evidence of good safety culture. It’s a box-ticking exercise.

One question worth asking directly in the pre-hire conversation: “Can you tell me about a near miss on a recent job and how it was handled?” A contractor who says they’ve never had one is either not working enough or not reporting. A contractor who can describe a specific incident, what happened, and what changed as a result, is a contractor with a functioning safety culture. That’s what you want.

This step is about vetting safety culture before hire, not reviewing an entire safety management system. For what good safety practice looks like when work is actually in progress on site, see our guide to zero-harm site safety on demolition projects.

Step 5: Call the References. Ask the Right Questions.

References are often treated as a formality. Most people call, ask if they were happy, hear yes, and tick the box. That approach tells you almost nothing useful.

Ask for a minimum of two references. Ideally, one should involve a project of similar complexity to yours. A contractor who has only ever done small residential jobs and is now quoting a commercial project or a difficult tight-access site is carrying a risk that doesn’t show up in their licence or their insurance.

When you speak with the reference, ask these three questions instead of the standard one.

Also check their online reviews, but go beyond the star rating. Look at how the contractor responds to negative reviews. A contractor who dismisses complaints or argues back in public comments is showing you how they’ll handle a disagreement on your site. A contractor who acknowledges issues and explains how they were resolved is demonstrating exactly the communication style you want during a live project.

And check that their past projects actually match the type of work you’re asking them to do. A portfolio of residential jobs doesn’t automatically qualify a contractor for a commercial or structurally complex site.

Comparing Quotes: The 8-Item Scope Checklist

Once you’ve verified the licence, insurance, waste compliance, safety documentation, and references, you can start comparing prices. Not before.

The cheapest quote in a set of three is often cheap because it’s missing something. Before you compare dollar figures, confirm that every quote covers the same scope. Here are the eight items that should appear in any legitimate demolition quote for a Sydney residential project.

If a quote is missing items two, three, four, or five, it’s not a cheaper version of the same job. It’s a different job with the risk transferred to you.

One more distinction worth understanding. A fixed-price quote locks in the total cost for the agreed scope. An estimate is an approximation that can change. An estimate that makes no provision for asbestos discovery is not a real fixed price. If asbestos is found mid-demolition, you’ll receive a variation. Ask directly: is this a fixed price or an estimate? What triggers a variation? Is asbestos discovery excluded?

For a full breakdown of what demolition costs in Sydney and what drives variations, see our demolition cost guide.