Last Friday an email was sent out to contractors throughout Qld from the Queensland Building and Construction Commission (QBCC) outlining changes to the law.

We just wanted to let you know of a new law requiring how the painting (and other trades – see below) industry has to now collect an insurance premium for our governing body QBCC.

This new law came into effect 28th October 2016, so we’ve been given a short period to try and understand the consequences and ramifications to our clients and the industry as a whole.

As a result of an inquiry by a Parliamentary Committee into the former Building Services Authority, various recommendations were made in relation to the home warranty scheme.

A brief summary of some of these changes is as follows:

Home Warranty Scheme:

The Scheme has been expanded to include the following work (providing it is carried out by a licensed contractor (or by an individual where fraud or certain representations are made) and is for a value over $3,300):

  • In relation to a residence or related roofed building (e.g. shed):
    • All building work performed within the building envelope (internal or external parts of the building), for example, painting, tiling, plastering, roof restoration and repair work, rendering of walls, floor restoration, and glazing work.

Under the amended legislation, a licensed contractor will be required to collect the appropriate insurance premium from the consumer, and pay it to the QBCC. Effectively, the contractor who pays the QBCC insurance premium does so on behalf of the consumer.

It is compulsory, and contractors face a fine of up to $1200 for not complying.

As a licensed and insured contractor who offers warranty on our work that is 5 times longer that that being offered by the QBCC, we have yet to see how this benefits the consumer….

Summary:

  • Contractors are required by law to collect an Insurance Premium from Consumers for works above $3300 (approx. starting at $186).
  • We are to pay it to the QBCC within 10 days of contract signing.
  • We are still unsure how long the period of Insurance is, however it seems to be limited.
  • A claim under this insurance only happens if the original licenses contractor does not fixed defective work.
  • In this case the QBCC can fine, suspend or cancel this license – so usually the contractor will comply to avoid this happening.

As a business we are unable to see real benefits to consumer, but do see this as an added cost.

Click this link to the Home Warranty Scheme Premium Table:

We sincerely apologies for the short notice, however our hands are tied when the Governing Authority makes radical changes which require consumers to compulsory insurance with only 1 weeks notice.

If you have any questions please feel free to contact our office anytime.

Tas Moulis
and the QPaint Team
Have a great weekend

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