Local tradespeople from communities devastated by bushfires are concerned out-of-town businesses will take the lion's share of rebuilding work worth hundreds of millions of dollars.

If that happens, locals say, they will be unable to employ subcontractors and spend money in towns already reeling from the drought and the loss of tourists during what is usually peak season.

Builders in fire-hit communities say locals should get the first chance at rebuilding work. Credit:James Brickwood

"It's probably the worst thing that can happen," builder Tony Lawson told The Sydney Morning Herald and The Age from Narooma on the NSW South Coast. "You'll have people coming in from out of town trying to capitalise on the situation".

Mr Lawson, whose apprentice and plasterer lost their homes in the fires, said he was ready to do rebuilding work and could employ up to 20 subcontractors and two permanent staff but was afraid insurers would give jobs to their preferred building companies.