QBCC Licence Reform Postponed

Two significant reforms to the QBCC licencing regime have been postponed until July 2022.

The first is the removal of the exemption from holding the appropriate category of licence for building work if a Head Contractor engages a subcontractor with the requisite licence.  That exemption is to be removed with effect from July 2022. From that date onwards, if a Head Contractor undertakes to perform construction work or a part of the scope of work under a building contract includes building work for which the Head Contractor does not have a licence, the Head Contractor will be performing unlicenced building work. It is no longer sufficient for the Head Contract to engage a subcontractor with that licence.  This is a significant reform which will mean that Head Contractors must review their licencing arrangements.

The second is the removal of the exemption from holding a QBCC licence for developers who have no intention of carrying out building work themselves.  Developers who tender for a project that requires building work currently do not require a QBCC licence if they engage an appropriately licenced builder to carry out that building work.  This exemption is to be removed.

These reforms will have a significant impact on the development industry because developers and Head Contractors who have, until now, relied on the exemptions will need to ensure they are ready to comply with the new licencing requirements, including demonstrating that they meet the relevant minimum financial requirements.

If the removal of both these exemptions proceeds, developers and Head Contractors who tender for or contract to carry out building work will need to be properly licenced.

Please contact John Carey if you have any queries or concerns.