April 8, 2024
If you are a builder in the Queensland, it is likely that you are required to hold a QBCC licence.
The Building and Construction Commission Act 1991 (‘the Act’) and the Building and Construction Commission Regulation 2018 (‘Regulation’) imposes strict licencing requirements for individuals and companies which are carrying out, or undertaking to carry out, ‘building work’.
The Queensland Building and Construction Commission (‘QBCC’) manage over 80 available licences and have been recently cracking down on unlicensed builders or improper use of licences across the state.
It is imperative for all builders in Queensland, whether looking to commence construction work, an established participant in the industry, or even someone looking to engage a builder, to be well aware of the requirements for licensing under the Act to avoid the significant penalties and financial implications that apply to those who do not comply.
This three-part series will explore when a QBCC licence is (or is not) required when undertaking work, the consequences for builders undertaking unlicenced building work and the implications for people who have engaged an unlicenced builder.
When is a QBCC licence required?
Section 42(1) of the Act states that a “…a person must not carry out, or undertake to carry out, building work unless the person holds a contractor’s licence of the appropriate class…”
In Queensland, individuals (sole traders, partners, trustees) and companies must hold a QBCC licence to carry out building work that is:
- Valued over $3,300;
- Valued over $1,100 where it involves Hydraulic Services Design; or
- Of any value where it involves:
- Drainage;
- Plumbing and drainage;
- Gas fitting;
- Termite management – chemical;
- Fire protection;
- Completed Residential Building Inspection;
- Building Design – Low Rise, Medium Rise and Open; and
- Site Classification.
The applicable licence is dependent on the participants intended role in the industry, the scope of work to be undertaken or be responsible for, or if you meet the eligibility requirements.
Meaning of “carry out” or “undertake to carry out”
Schedule 2 of the Act broadens the application of s42(1) in that, for building work:
- “carry out” means:
- to carry out the work personally;
- directly or indirectly cause the work to be carried out; or
- provide building work services for the work; and
- “Undertake to carry out” means:
- enter into a contract to carry out the work;
- submit a tender to carry out the work; or
- make an offer to carry out the building work.
Further, “building work services” includes administrative services, advisory services, management services and supervisory services.
Importantly, these definitions extend the application of the licensing regime to the performance of services and tasks beyond what would typically be considered building work.
What is “building work”?
The term “building work” is broadly defined under the Act and includes:
- the erection or construction of a building; or
- the renovation, alteration, extension, improvement, or repair of a building; or
- the provision of lighting, heating, ventilation, air conditioning, water supply, sewerage or drainage in connection with a building; or
- any site work (including the construction of retaining structures) related to work of a kind referred to above; or
- the preparation of plans or specifications for the performance of building work; or
- contract administration carried out by a person in relation to the construction of a building designed by the person.
The term ‘building’ is also broadly defined as including “any fixed structure”, which may include for example, a fence or an in-ground swimming pool.
What is not “building work”?
Schedule 1 of the Regulation identifies work which is not considered ‘building work’ and therefore not subject to the licensing regime.
These works include (non-exhaustively):
- work that is valued less than $3,300;
- construction, maintenance or repair of a public road, bridge, footpath or tunnel for a road;
- erection of scaffolding;
- construction work in mining;
- works for curtains, blinds and internal window shutters, laying carpets, floating floors or vinyl;
- work constating of earthmoving and excavating; and
- laying of asphalt or bitumen.
Exceptions to building without a licence?
Further, there are also a range of situation specific exemptions from the requirement to hold a QBCC licence as stated in Schedule 1A of the Act, despite undertaking ‘building work’ of some kind.
In most cases, a QBCC licence is not required if you carry out ‘building work’ (other than fire protection work or mechanical services work) as an employee of a licenced contractor. However, you do need a licence as an employee if you become responsible for:
- overseeing and directing the building work i.e. supervising the work
- ensuring the work is of a competent standard i.e., free of defects;
- ensuring the work complies with the plans and specifications.
For example, if you are employed as a nominee or site supervisor, you are required to hold a QBCC licence in the relevant class for the scope of works being undertaken.
Some further specific exemptions include those relating to public private partnerships, partnerships generally, prescribed government projects and design work by landscape gardeners, owner builders and consumers.
In most cases, you also do not need to hold a QBCC licence if you are an asbestos removal worker, a demolition work, an insultation installer, an electrician, a handyman, and an architect.
Note, the information provided above is a general guide only as there are numerous exemptions listed in both Schedule 1A of the Act and Schedule 1 of the Regulation, that exempt work from being defined as building work (thereby negating the need to hold a contractor’s licence). You are encouraged to review these.
Next Week
It is an offence under the Act to carry out or undertake to carry out unlicensed building work, which can include not holding a QBCC licence or working outside of what your licence allows you to do. Next week we explore the ramifications of such and what it means as a builder unlawfully undertaking building work.
Lamont Project and Construction Lawyers
Are you unsure of what building work you can undertake as part of your QBCC licence? Or whether you are required to hold a licence for the work you are wishing to undertake? Get in touch with our team at LPC Lawyers.
With extensive experience in the QBCC legislation, LPC Lawyers can assist with any of your queries or project specific issues.
If you would like to discuss any matters raised in this article as it relates to your specific circumstances, please contact LPC Lawyers.
The content of this article is for information purposes only and does not discuss every important topic or matter of law, and it is not to be relied upon as legal advice. Specialist advice should be sought regarding your specific circumstances.
Contact: Peter Lamont or Stephanie Purser
Email: [email protected] or [email protected]
Phone: (07) 3248 8500
Address: Suite 1, Level 1, 349 Coronation Drive, Milton Qld 4064
Postal Address: PO Box 1133, Milton Qld 4064