Tradies Beware: Know how to avoid breaking QBCC laws

Tradies may be feeling a bit overwhelmed trying to wade through all the information the QBCC has on their website about how to stay compliant with your licence conditions. Therefore, it’s important that you know when you could be breaking QBCC laws, as ignorance may not save you from having to deal with the consequences.

A QBCC licence does not only give you permission to provide building and construction services, it also requires you to comply with regulations that are based in law… and if you don’t, you could be breaking the law leading to possible penalties, demerit points, or even suspension of your licence.

Make sure you understand when you are breaking the law. Here’s what could get you into trouble, if you don’t comply with these regulations:

  1. Performing any work if you haven’t got a valid QBCC licence.
  2. Using another person’s QBCC licence or lend your licence no. to someone else who wants to perform work.
  3. Not paying Home Warranty Insurance if the value of the residential work exceeds $3,300.
  4. Not following the conditions of the contract you’ve agreed to, be that working directly with the client or as a sub-contractor to a builder.
  5. Not being of ‘fit and proper’ character to carry out your business with honesty and integrity, or being involved in criminal activity not covered by the QBCC jurisdiction.
  6. Incorrect advertising that’s missing required wording.
  7. Not complying with the decision of an adjudicator requiring you to make a payment.
  8. Failure to meet the Minimum Financial Requirements, including certain annual financial reporting.
  9. Failure to release a sub-contractor’s retention amount without good reason.
  10. Failure to give a Notice of End of Defects Liability Form to subcontractors.
  11. Failure to comply with Project Bank Account requirements.

For more details on the circumstances that could lead you to break the law unwittingly visit the QBCC website.

In the last 14 days there were over 140 QBCC licence suspensions for various violations of licensing conditions. With the majority of them being failure to pay the annual licensing fee, you can see how easy it is to get into trouble with QBCC laws.

From an accounting perspective, losing your QBCC licence can severely impact on your cash flow and business overall. Don’t wait until it’s too late. Contact us now for a FREE QBCC Compliance Check.

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Please Note: Many of the comments in this article are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances.