
8 QBCC Licence Offenses to Avoid
Having a QBCC licence is both a privilege and a responsibility. It allows you to legally operate as a builder or contractor across the Sunshine State. At the same time, you must also follow the rules and regulations set by the State Government and administered by the QBCC.
Not complying with the regulations can result in a range of consequences, from receiving demerit points to having your licence suspended or cancelled and having your license noted with a public warning.
>> visit our QBCC MFR Report and Accounting page to learn more about managing your QBCC obligations. <<
If you want to keep your licence clean and active, avoid:
1. Late lodgement of your annual financial information
QBCC requires all building contractors in the state to have a strong and financially sustainable business with an appropriate level of working capital. This ensures that people are paid for their work and minimises the number of financial failures, liquidations and bankruptcies within the building and construction industry.
To prove that your business is financially sound, you must meet the Minimum Financial Requirements (MFR) by demonstrating that you meet the minimum Net Tangible Assets (NTA) and Current Ratio required based on your financial category. Read more about QBCC’s Minimum Financial Requirements.
Your MFR must be reflected in your annual financial information, which you need to lodge by the required reporting day which is on the 31st of December for Category 1 to 7 and 31 March of the following year for SC1 and SC2. If you do not lodge by the due date, the QBCC may take regulatory action including possible suspension or cancellation of your license. Speak with an expert in MFR to know your options.
2. Late payment of all invoices
This includes responding late to the payment claim with a payment schedule within 15 business days after receipt.
3. Not paying the Home Warranty Insurance premium
As a contractor, you are required to pay the home warranty insurance premium before working on any residential construction contract valued at over $3,300. This should be paid within 10 business days or before starting any work. Failure to do so will earn you demerit points.
4. Using another person’s QBCC licence number or lending yours
If you or your friend has the right qualifications and minimum financial requirements for a QBCC licence, there is no excuse not to get one. Don’t know what to prepare or how to lodge your licence application? Visit our QBCC MFR Report and Accounting page.
5. Incorrect advertising
There are site signage and advertising requirements that you need to follow when advertising online or offline. One of the most important rules is putting your name or your company’s name and your QBCC licence number in the ad and on the site sign. If using a trading name, include the information about your QBCC licence.
6. Not complying with the conditions in your contract
Make sure that you understand the conditions of your contract before starting any work. Once you agreed to the conditions, you are bound to them. Failure to comply is an offence under the Queensland Building and Construction Commission Act 1991. Your client can also file a claim against you in the Queensland Civil and Administrative Tribunal.
7. Delaying or obstructing a QBCC-directed rectification work
You must complete any work within the agreed period or rectify any defective work if the QBCC advises you to do so to avoid being fined.
8. Working with a suspended or cancelled licence
If your licence gets suspended or cancelled, you cannot carry out any work until your licence is reinstated. These include providing quotes and signing a contract. If you proceed to do any work, you are working illegally.
We offer all QBCC license holders a complimentary QBCC accounting health check, to see if you’re meeting your licence obligations. So, before you lodge your financials with the QBCC, get in touch with us so we can help nip any problems in the bud.
Call our QBCC Hotline today on: 1300 233 723 or email: [email protected].
Or… visit our dedicated QBCC MFR Report and Accounting page to learn more about how to manage your QBCC license requirements.
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