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Queensland Building and Construction Commission Act 1991 – 28 October 2016

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Queensland Building and Construction Commission Act 1991 – 28 October 2016

Queensland Building and Construction Commission Regulation 2003 – 2 December 2016

Queensland Building and Construction Commission (Transfer) Regulation 2014 – 10 November 2014

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The Queensland Building and Construction Commission is established as a body corporate. The commission consists of: the Queensland Building and Construction Board; the commissioner and the organisational unit under the control of the commissioner; and the Service Trades Council. The commission has the following functions: to administer this Act and further its objects; and any function given to it under another Act. For the functions of the Queensland Building and Construction Board, refer to section 11 of the Act. For a list of what the Commissioner’s responsibilities, refer to section 20J of the Act.

  • Sections 5, 6, 7, 8, 9, 10, 11, 19, 20D, 20J, 20K, 29A, 29C; Regulation 34A, Schedule 1A of the Queensland Building and Construction Commission Regulation 2003

A licence (called ‘a contractor’s licence’) may be issued authorising the licensee: to carry out all classes of building work; or to carry out building work of 1 or more classes specified in the licence. For eligibility requirements (including fit and proper person requirements) for this licence, see section 31 of the Act. For details on the issue of nominee supervisor’s licences, refer to section 30A of the Act. For the issue of site supervisor licences, see section 30B of the Act. A fire protection occupational licence is issued pursuant to section 30C of the Act. For the process on how to make a license application, refer to section 33 of the Act and regulation 17 of the Queensland Building and Construction Commission Regulation 2003. In deciding whether to give a licence, the commission may make inquiries and investigations that are reasonable and appropriate in the circumstances, including for example by: (a) seeking confirmation about the experience of applicants through site inspections and referee checks; and (b) carrying out checks with the Australian Securities and Investment Commission, bankruptcy registers and credit bureaus. For the definitions of ‘building’ and ‘building work’, refer to Schedule 2 of the Act.

  • Sections 4, 30, 30A, 30B, 30C, 31, 31A, 32, 32AA, 32AB, 32A, 33, 34, 35, 36, 37, 56, 56AE, 59, 63, 67AE, 67AZC, 99, 101, 103F, Schedule 2; Regulations 5, 14, 14A, 14B, 14C, 15, 16, 16A, 16B, 17, 17A, 31, 33, Schedules 1A, 2, 2A of the Queensland Building and Construction Commission Regulation 2003

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 under this Act. A person who carries out building work without a licence is not entitled to any monetary or other consideration for the work so carried out. However, subsection 42(4) of the Act may provide some relief in relation to a claim for reasonable remuneration. Note: Similar prohibition rules apply to work which would be covered by other licenses (and there are also rules relating to ensuring adequate supervision). Further to the above, a licensed contractor must not contract with a person for the person to carry out the building work unless the person holds a contractor’s licence of the appropriate class under this Act. The commission may take disciplinary action against a person not a licensee under this Act pursuant to section 74C of the Act. For the definition of ‘undertake to carry out’, refer to Schedule 2 of the Act.

  • Sections 4, 42, 42A, 42B, 42C, 42D, 43, 43A, 43B, 43C, 51A, 51B, 56, 74C, 74D, Schedules 1A, 2; Regulations 27A, 31, Schedule 2B of the Queensland Building and Construction Commission Regulation 2003

An owner requires a permit (called ‘an owner-builder permit’) to carry out owner-builder work on the owner’s land. The owner of land may apply to the commission for an owner-builder permit pursuant to section 44 of the Act. The application must: (a) state the name of the owner; and (b) if the owner is a company, state the names of the directors and the company’s ACN number; and (c) state the location of the land; and (d) include a description of the work to be carried out; and (e) include other information the commission reasonably requires to decide an application. In addition, the application must be accompanied by: (a) proof of the applicant’s identity; and (b) if the applicant is a company, a copy of the company’s current or historical extract; and (c) proof that the applicant is the owner of the land; and (d) proof that an owner-builder course has been successfully completed by an individual who is: (i) an applicant; or (ii) a director of a company that is an applicant. For the definitions of ‘carry out’ and ‘owner-builder work’, refer to section 43D of the Act. Note: A permit ends 6 years after its issue or on the earlier date stated in the permit. For the conditions of an owner-builder permit, refer to section 44E of the Act. If a permit is issued, the commission must notify the registrar of titles for attaching to the relevant land titles register – see section 46 of the Act.

  • Sections 43D, 43E, 44, 44A, 44B, 44C, 44D, 44E, 44F, 44I, 46, 103, 103A, 103F; Regulations 21, 21A of the Queensland Building and Construction Commission Regulation 2003

If: building work is carried out on land by a person who is not licensed to carry out that building work (such as an owner-builder); and the land is offered for sale within 6 years after completion of the building work; THEN the vendor must, before the contract of sale is signed by the purchaser, give the prospective purchaser a notice containing details of the building work and a warning in the form required by regulation. If a notice is not given as required, the vendor will be taken to have given the purchaser a contractual warranty (which operates to the exclusion of any inconsistent provision of the contract of sale) that the building work was properly carried out.

  • Section 47; Regulation 22 of the Queensland Building and Construction Commission Regulation 2003

A licensed contractor (not being a subcontractor) must exhibit at a prominent position on a building site under the contractor’s control a sign conforming with the regulations showing the name under which the contractor is licensed under this Act and the number of the contractor’s licence.

  • Section 52; Regulation 28 of the Queensland Building and Construction Commission Regulation 2003

A person who carries out building work under an owner-builder permit must exhibit at a prominent position on a building site under that person’s control a sign conforming with the regulations showing the number of the permit.

  • Section 52; Regulation 28 of the Queensland Building and Construction Commission Regulation 2003

A person who does not hold a contractor’s licence must not publish an advertisement that the person is available to carry out building work unless the advertisement complies with this section. The advertisement must state the value of the work the person is entitled to carry out without a licence. For the definition of ‘value’, refer to Schedule 2 of the Act.

  • Sections 4, 53C, Schedule 2

A licensee who publishes or causes to be published any advertisement in connection with the licensee’s business must ensure that the advertisement: (a) contains the name under which the licensee is licensed; and (b) states that the licensee is licensed under this Act and the number of the licensee’s licence; and (c) conforms with any other requirements imposed by regulation.

  • Section 54; Regulation 29 of the Queensland Building and Construction Commission Regulation 2003

A judgment debtor for a judgment debt must notify the commission within 14 days after the judgment debt becomes an unsatisfied judgment debt. For the meaning of ‘judgment debt’ relating to a building contractor, refer to section 67AS of the Act. For the definition of ‘building contractor’, refer to Schedule 2 of the Act.

  • Sections 4, 67AS, 67AZ, Schedule 2

Domestic building contracts are regulated under Schedule 1B. A ‘domestic building contract’ is: (a) a contract to carry out domestic building work; or (b) a construction management contract for the provision of building work services for domestic building work; or (c) another contract to manage the carrying out of domestic building work. Each of the following is ‘domestic building work’: (a) the erection or construction of a detached dwelling; (b) the renovation, alteration, extension, improvement or repair of a home; (c) removal or resiting work for a detached dwelling; (d) the installation of a kit home at a building site. The requirements of a level 1 regulated contract are provided by provisions 6 and 13 of Schedule 1B of the Act. The requirements of a level 2 regulated contract are provided by provisions 7 and 14 of Schedule 1B of the Act and regulation 27AC of the Queensland Building and Construction Commission Regulation 2003. For copy of document requirements for contracts, refer to provisions 15, 16, 17, 18 of Schedule 1B of the Act. Warranties are implied into regulated contracts pursuant to provisions 5 and 19 of Schedule 1B of the Act (provision 5 contains the definition of ‘regulated contract’). Note: Proceedings for a breach of a statutory warranty must be started before the end of the warranty period for the breach – see provision 29 of Schedule 1B of the Act. In addition, a provision of a regulated contract, or other agreement, requiring that a dispute under the contract be referred to arbitration is void – see provision 32 of Schedule 1B of the Act. For details on progress payments permissible under regulated contracts, refer to provision 34 of Schedule 1B of the Act. A cooling off period for regulated contracts is provided by provision 35 of Schedule 1B of the Act. For definitions applying to Schedule 1B (including ‘regulated amount’ as $3300 or higher), refer to provision 1 of Schedule 1B of the Act. For the definitions of ‘building work services’ and ‘construction management contract’, refer to Schedule 2 of the Act.

  • Sections 4, 67AZN, 108D, Schedule 2, Provisions 1, 3, 4, 5, 6, 7, 8, 11, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 28, 29, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 44 of Schedule 1B; Regulation 27AC of the Queensland Building and Construction Commission Regulation 2003

The commission may prepare and publish suggested forms for building contracts.

  • Section 67F

A building contractor commits an offence if: (a) the building contractor enters into a building contract, whether as the contracting party or the contracted party for the contract; and (b) the building contract is not put into writing: (i) if the reasonable cost of the building work the subject of the contract is more than $10,000 – before carrying out the building work is started; or (ii) if the reasonable cost of the building work the subject of the contract is $10,000 or less – before carrying out the building work is finished. Further, a building contractor commits an offence if: (a) the building contractor enters into a building contract, whether as the contracting party or the contracted party for the contract; and (b) the building contract is put into writing; and (c) the building contract, in writing, does not comply with the formal requirements for a building contract. A building contract in writing complies with the formal requirements for a building contract if the contract states the following: (a) the scope of the building work the subject of the contract; (b) when the building work is to be completed; (c) the amount to be paid for carrying out the building work or, if appropriate, how the amount to be paid for carrying out the building work is to be worked out; (d) the parties’ agreement about retention amounts and securities to be held; (e) the name of the building contractor who is the contracted party for the building contract; (f) the licence number of the building contractor mentioned in paragraph (e), as it appears on the building contractor’s licence card; (g) the address of the land where the building work is to be carried out. For the definition of ‘building contract’, refer to section 67AAA of the Act. This definition does not include a domestic building contract. For the definition of ‘carry out building work’, refer to section 67A of the Act.

  • Sections 67A, 67E, 7AAA, 67G

Unless the building contract otherwise provides, a direction may initially be given other than in writing. However, if a direction is given other than in writing, the contracted party: (a) may ask for the direction to be given in writing; and (b) is not required to comply with the direction until it is given in writing.

  • Section 67I

The contracting party for a building contract may use a security or retention amount, in whole or in part, to obtain an amount owed under the contract, only if the contracting party has given notice in writing to the contracted party advising of the proposed use and of the amount owed. For the definition of ‘security’, refer to section 67A of the Act. For the definition of ‘retention amount’, refer to section 67C of the Act. The notice must be given within 28 days after the contracting party becomes aware, or ought reasonably to have become aware, of the contracting party’s right to obtain the amount owed.

  • Sections 67A, 67C, 67J

If the contracting party under the contract is a principal (defined in section 67A) or a special purpose vehicle, THEN the building contract is subject to a condition that at any time before, under the contract, practical completion of building work is reached, the total value of the following is to be not more than 5% of the contract price for the contract: (a) all retention amounts for the contract that are being withheld; (b) all securities for the contract given and still held. For the definition of ‘special purpose vehicle’, refer to Schedule 2 of the Act.

  • Sections 4, 67K, Schedule 2

A subcontract is subject to a condition that, at any time before, under the contract, practical completion of building work is reached, the total value of the following is to be not more than 5% of the contract price for the subcontract: (a) all retention amounts for the subcontract that are being withheld; (b) all securities for the subcontract given and still held. For the definition of ‘subcontract’, refer to section 67D of the Act.

  • Sections 67D, 67L

If: (a) an amount is payable by the contracting party for a building contract to the contracted party for the building contract; and (b) the relevant amount relates to carrying out building work under the contract; and (c) the relevant amount, except for a retention amount for the building contract that is withheld, is paid to the contracted party, THEN the building contract is subject to a condition that the retention amount withheld is to be not more than 10% of the relevant amount.

  • Section 67M

A building contract is subject to a condition that, at any time after, under the contract, practical completion of building work is reached, the total value of the following is to be not more than 2.5% of the contract price for the contract: (a) all retention amounts for the contract that are being withheld; (b) all securities for the contract given and still held.

  • Section 67N

If: (a) the contracting party for a building contract has not complied with an order of a court or of the tribunal given in favour of the contracted party for the contract in relation to an issue arising under the contract; or (b) all of the following apply- (i) an amount is required to be paid to the contracted party for a building contract by a particular time; (ii) the full amount is not paid, other than solely because of the retention of an amount lawfully permitted to be retained; (iii) the requirement to pay the amount is not in dispute between the contracting party and the contracted party; THEN the contracted party may give the contracting party a written notice stating- details of the circumstance mentioned in (a), or of the circumstances mentioned in subsection (b)(i) to (iii); and that the contracted party intends to suspend building work the subject of the building contract if the order mentioned is not complied with, or if the amount mentioned is not paid, within the time stated in the written notice. For the full suspension of works procedures, refer to section 67O in detail.

  • Section 67O

If: (a) the contracting party for a building contract is required to pay a (progress) amount to the contracted party for the building contract; and (b) the progress amount is payable as the whole or a part of a progress payment; and (c) the time by which the progress amount is required to be paid has passed, and the progress amount, or a part of the progress amount, has not been paid; THEN for the period for which the progress amount, or the part of the progress amount, is still unpaid after the payment time, the contracting party is also required to pay the contracted party interest at the penalty rate, as applying from time to time, for each day the amount is unpaid.

  • Section 67P

If the contracted party for a building contract (construction management trade contract / subcontract) is under a lawful obligation to lodge a security in the form of an amount of money, THEN the contracted party complies with the obligation if: (a) the contracted party lodges with the contracting party a security, in the form of a government bond or a valuable instrument from an approved security provider, to take the place of the security in the form of money; and (b) the value of the security is equal to the relevant amount. For the definition of ‘construction management trade contract’, refer to section 67B of the Act.

  • Sections 67B, 67D, 67R, 67S

If, under a building contract (construction management trade contract / subcontract), the contracting party is holding: (a) an amount as a retention amount; or (b) a security in the form of an amount of money, THEN the building contract is subject to a condition that: (a) the contracted party may lodge with the contracting party a security, in the form of a government bond or a valuable instrument from an approved security provider, to take the place of the retention amount or of the security in the form of money; and (b) on the lodging of the security, the contracting party must pay the contracted party the relevant amount.

  • Sections 67B, 67D, 67R, 67T

A provision in a construction management trade contract or subcontract is void to the extent it provides for payment of a progress payment by a contracting party to a contracted party later than 25 business days after submission of a payment claim.

  • Sections 67B, 67D, 67U

The contracting party for a construction management trade contract commits an offence if: (a) the construction management trade contract does not include a complying warning; and (b) the warning is not initialled by the contracted party for the contract. The warning: (a) must be in a form prescribed by regulation; and (b) must be concerned with the possible dangers for the contracted party for the contract of entering into a construction management trade contract rather than a subcontract.

  • Sections 67B, 67V; Regulation 32 of the Queensland Building and Construction Commission Regulation 2003

A provision in a commercial building contract is void to the extent it provides for payment of a progress payment by a contracting party to a contracted party later than 15 business days after submission of a payment claim. For the definition of ‘commercial building contract’, refer to section 67A of the Act.

  • Sections 67A, 67W

A consumer (of residential construction work) may obtain optional additional cover for residential construction work if a licensed contractor paid an insurance premium for the work. For the Terms of Cover, refer to Schedule 2C of the Queensland Building and Construction Commission Regulation 2003.

  • Sections 67X, 67Y, 67Z, 68I, 70B; Regulations 23, 26B, 26C, Schedule 2C of the Queensland Building and Construction Commission Regulation 2003

A licensed contractor who is to carry out residential construction work must pay an insurance premium under this Act for the work if the work is carried out under a contract with a consumer and the work is not the subject of a construction management contract. When the commission accepts the appropriate insurance premium in respect of residential construction work, the commission must issue a notice of cover for the work. For the Terms of Cover, refer to Schedule 2C of the Queensland Building and Construction Commission Regulation 2003. Note: Sections 68 and 71C of the Act apply to insurance claims. Pursuant to section 71C of the Act, a person claiming to be entitled to indemnity under the insurance scheme must give notice of the claim to the commission in accordance with the regulations. Section 68 details when a person is not entitled to assistance under the statutory insurance scheme for the work. For the definitions of ‘consumer’, ‘residential construction work’ and ‘speculative residential construction work’, refer to section 67WA of the Act.

  • Sections 4C, 67WA, 67WB, 67WC, 67X, 67Y, 68, 68A, 68B, 68C, 68E, 68F, 68H, 68I, 70, 70A, 71, 71C; Regulations 23, 24, 25, 26, 26B, 26I, 27, Schedule 2C of the Queensland Building and Construction Commission Regulation 2003

A consumer may ask the commission to give a direction to rectify building work the consumer considers is defective or incomplete. The request must comply with subsection 71J(3) of the Act. In deciding whether to give the direction, the commission may take into consideration all the circumstances it considers are reasonably relevant and, in particular, is not limited to a consideration of the terms of the contract for carrying out the building work (including the terms of any warranties included in the contract). Note: The commission is not required to give the direction if the commission is satisfied that, in the circumstances, it would be unfair to the person to give the direction. For the definitions of ‘defective’ and ‘rectify’, refer to Schedule 2 of the Act.

  • Sections 4, 4C, 71J, 72, 72A, Schedule 2

The owner or occupier of a residential property adjacent to a building site may ask the commission to give a direction to remedy any consequential damage to the property. The request must comply with subsection 71J of the Act. In deciding whether to give the direction, the commission may take into consideration all the circumstances it considers are reasonably relevant and, in particular, is not limited to a consideration of the terms of the contract for carrying out the building work (including the terms of any warranties included in the contract). Note: The commission is not required to give the direction if the commission is satisfied that, in the circumstances, it would be unfair to the person to give the direction.

  • Sections 4C, 71J, 72, 72A

A person involved in a building dispute may apply, as provided under the QCAT Act, to the tribunal to have the tribunal decide the dispute. However, the person may not apply to the tribunal unless the person has complied with a process established by the commission to attempt to resolve the dispute. A major commercial building dispute may be decided by the tribunal only if the tribunal is satisfied all parties to the dispute consent to it doing so. An application to start a proceeding for a major commercial building dispute must be accompanied by the written consent of all parties to the dispute. For what constitutes ‘tribunal work’, refer to section 75 of the Act. For when a party may be represented by a lawyer, refer to section 93A of the Act. For the definitions of ‘building dispute’, ‘commercial building dispute’ and ‘major commercial building dispute’, refer to Schedule 2 of the Act.

  • Sections 4, 75, 76, 77, 78, 79, 81, 82, 83, 85, 93A, 95, 97, 97B, 97C, Schedule 2; Regulation 34B of the Queensland Building and Construction Commission Regulation 2003

A building contractor must, at the request of a consumer, allow the consumer reasonable access to a building site at which building work is being carried out for the consumer.

  • Section 109
Reason for law

To regulate the building industry: (i) to ensure the maintenance of proper standards in the industry; and (ii) to achieve a reasonable balance between the interests of building contractors and consumers; and (b) to provide remedies for defective building work; and (c) to provide support, education and advice for those who undertake building work and consumers; and (d) to regulate domestic building contracts to achieve a reasonable balance between the interests of building contractors and building owners. (Section 3)

Relevant links

Queensland Building and Construction Commission
Online Licence Search
Owner building
The Home Owner Building Guide

Consumer Building Guide

QBCC register of Owner Builder Permits [Queensland Government]

Critique

The Schedule 2 of the Act definition of ‘contract price’ contains a repeated paragraph.

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PLEASE NOTE: The information published on this webpage may be out-of-date. Please compare the currency date of the Act/Regulation against that published on the Office of the Queensland Parliamentary Counsel website. If you require access to Commonwealth statute law, please visit the ComLaw website. If you require access to the local council laws (by-laws), please visit the Local laws database.

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