May 6, 2022
Welcome to the May edition of Projects & Construction Monthly.
This edition addresses:
- QBCC head contractor licensing exemption;
- LPC Lawyers’ ‘2032 Olympic & Paralympic Games’ series;
- LPC Lawyers’ ‘Construction Industry Facing Mounting Pressure’ article and upcoming ‘Deed’ series; and
- LPC Lawyers expands into 2022.
QBCC Head Contractor Licensing Exemption
On 29 March 2022, the Queensland Government introduced the Building and Other Legislation Amendment Bill 2022 (Qld) (2022 Amendment Bill) which seeks to reinstate the Head Contractor Exemption (with further amendments) by removing s125A of the Building Industry Fairness (Security Payment) and Other Legislation Amendment Act 2020 (Qld) (2020 Amendment Act).
For insights into the 2022 Amendment Bill read the Explanatory Notes here. Some of the insights include:
- The objectives are to ‘enhance the efficacy and transparency of the regulatory framework through amendments to legislative provisions regarding … head contractor licensing …’.
- Subsequent consultation shows reliance on the Head Contractor Exemption in commercial contracting that involves a minor element of building work – if the Head Contractor Exemption was repealed (as originally proposed in the 2020 Amendment Act), such business would likely face an increased administrative cost and burdens in undertaking work that is ancillary to their business.
- Concerns remain regarding the Head Contractor Exemption allowing entities to circumvent Qld’s licencing system, and entities assuming the role of a Head Contractor where it may not have sufficient skills and experience to administer and manage the procurement of building work, particularly in complex projects or high-risk work that impacts life safety (such as mechanical services or fire protection).
- Due to these concerns, the 2022 Amendment Bill also provides that regulation under the QBCC Act may require some Head Contractors to obtain a licence, for example, for those who engage in high-risk work.
In summary, if passed:
- The QBCC head contractor licensing exemption will remain in force addressing industry participants concerns over the additional costs and administrative burdens flowing from its abolishment;
- The completion of certain works may no longer be covered (certain works has not yet been defined); and
- An additional regulation requiring licensing of head contractors undertaking high-risk work may be introduced (no further information has been provided in this respect).
Timeline
Since its introduction in late-March, the 2022 Amendment Bill has been referred to the Transport and Recourses Committee for detailed consideration.
The Committee is required to submit a report to the Parliament by 13 May 2022 and once tabled, the Queensland Government will have 3 months (until mid-August 2022) to respond to recommendations in the report (if any).
LPC Lawyers’ ‘2032 Olympic & Paralympic’ Series
Part 1 – Brisbane’s Gold Rush
This series explores the opportunities for the construction industry following the announcement of the initial budget of $4.5bn for the 2032 Brisbane Olympic & Paralympic Games (which does not include other proposed infrastructure, such as the Cross River Rail or Brisbane Metro), and the recently signed $1.8bn SEQ City Deal. Read more here.
Part 2 – The GREEN and Gold Olympics – Sustainability in the Construction Industry & 2032 Games
Part two outlines the sustainability goals of the 2032 Games, as well as and practical and contractual considerations which could be implemented in major projects to promote sustainability in Australia’s construction industry. Read more here.
Part 3 – Don’t Let it Cost You the Gold – Olympic-sized Budget Blowouts & Preventing Cost Overruns in Major Construction Projects
Part three discusses how hosting of an Olympic & Paralympic Games is notoriously expensive and identifies some of the risks in major projects that cause budget blowout and systems that can be implemented to manage those risks. Read more here.
Part 4 – The Finish Line – Preventing Delay in Major Construction Projects
The final part of this series identifies some strategies which can be implemented in major projects to ensure it crosses the finish line on time. Read more here.
LPC Lawyers’ Recent Article and Upcoming Series
Construction Industry Facing Mounting Pressure
LPC Lawyers’ recent article discusses the increasingly challenging circumstances within the construction industry, and highlights the impact of key risks, including supply chain delays, changes to interest rates, and inflation and what parties can do to proactively address such an mitigate ongoing issues. Read more here.
Upcoming ‘Deed’ Series
LPC Lawyers’ upcoming series will focus on Deeds, exploring what deeds are, their general operation, and when they typically arise during construction projects. This series will also discuss commonly used deeds in the construction industry, including deeds of assignment, novation, and variation and discuss deeds of settlement and release, setting out some key considerations when drafting.
Stay tuned, as part one in this series will be posted on 10 May 2022.
LPC Lawyers’ Expansion Continues
LPC Lawyers is looking to hire a Construction Litigation Lawyer (1-3 years PAE) as we expand into 2022.
Litigation Lawyers (1-3 years PAE)
Working closely with an ex-top tier partner, this role is ideal for a candidate who is highly motivated and has experience in drafting correspondence, simple pleadings, briefs for Counsel, and some client advisory work.
For more information or to apply, please email your resume and cover letter to [email protected] and [email protected].