After you’ve put in the hard yards to qualify for a QBCC licence, it’s important that you understand the requirements for keeping it active and compliant in the eyes of QBCC. Not complying with regulations can result in a range of consequences, including having your licence suspended or even cancelled! At the very least QBCC may fine you and issue demerit points.
If you want to keep your licence untainted and active, you need to avoid these things:
1. Late lodgement of your annual financial information
Not meeting the minimum financial requirements of holding a QBCC licence can result in your licence getting suspended or cancelled. This includes providing the QBCC with certain annual financial information or giving false or misleading information about your Minimum Financial Requirements (MFR) to another person, e.g. to your accountant, which they may submit to the QBCC. Read more about MFR and how you need to report it to the QBCC here.
2. Failing to pay Home Warranty Insurance
As a contractor, you must pay the premium for any residential construction work over $3,300. The QBCC home warranty insurance needs to be paid within 10 business days or before work starts. (whichever comes first).
3. Using someone else’s QBCC licence number or lending yours
QBCC has made it clear that it is not ok to lend your licence to someone else and the same applies to you- you cannot use someone else’s licence. While it may help you get the work done, it is not worth the risk if you’re caught. It will result in long term consequences for both you and the other contractor. If you or the other person have all the right qualifications and can easily apply, there’s no excuse for not having a licence.
Please note that if you are an employee, you don’t need a licence unless you become responsible for
- Overseeing and directing the building work
- Ensuring the work is of a competent standard, i.e. free of defects
- Ensuring the work complies with the plans and specifications
An unlicensed person is not required a licence when working in partnership with a licensee where the licensed partner holds the correct QBCC licence for the work you are doing. However, as an unlicensed partner, you cannot offer to tender or enter into a contract to carry out building work and you must meet QBCC’s fitness and propriety conditions. For more details on who is not required to hold a QBCC licence, click here.
4. Incorrect advertising
Any advertising that you do for your business must include the correct wording and terminology. These can include site signage and online or offline advertising. It’s a good idea to put you or your company’s name and your QBCC licence number in the ad or the site sign.
5. Late payment of your invoices
This includes responding late to the payment claim. You have to respond with a payment schedule within 15 business days after receipt.
6. Not complying with the conditions in your contracts
Whether you are working directly with a client, or have an agreement with a builder to carry out sub–contract work, you need to ensure that you understand the conditions of your contract. Cutting corners and failing to follow the conditions in your contract can be an offence under the Queensland Building and Construction Commission Act 1991 and can expose you to a claim at QCAT.
7. Delaying or obstructing a QBCC-direct rectification work
If the QBCC believes work is defective or incomplete and you are given a direction to rectify, you risk a fine if you delay or obstruct the rectification work.
8. Working with a suspended or cancelled licence
If your licence is suspended or cancelled, you must not carry out any building work. You also can’t provide quotes or tenders for building work, sign a new contract, or do the work itself. If you are in the middle of a job, you need to stop work until you become licensed again. You will need to review any contracts that you have in place and seek legal advice regarding the consequences that licence suspension or cancellation has on your contracts.
Where to get help
If you’re at risk of failing to meet any of these requirements or are concerned about losing your licence, get in touch with us today. Organise a meeting with one of our QBCC specialists who will be able to make sure that you’re meeting the QBCC financial requirements for your licence and work out an action plan if your numbers don’t add up. You can reach us on (07) 3023 4800 or at mail@marshpartners.com.au.
You can find out more about working with Marsh & Partners here. As your Absolute.Account.Ability partner we’re on a mission to make your business life better. We’ll help you set goals for your business, devise an Action Plan to make them happen and meet with you regularly to ensure you stay on track
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