The Queensland Building and Construction Commission (QBCC) sent an email last Friday outlining changes to the law.

The revised law focused on the new process of collecting insurance premium on painters and tradies. It will be effective starting on the 28th of October 2016.

Various recommendations were made in relation to the home warranty scheme.  The recommendation was based on the inquiry by the Parliamentary Committee into the former Building Services Authority.

A brief summary of some of these changes 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.

A licensed contractor will be required to collect the appropriate insurance premium from the consumer and pay it to the QBCC under the amended legislation. The contractor who pays the QBCC insurance premium does so on behalf of the consumer effectively.

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

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 fix defective work.
  • In this case, the QBCC can fine, suspend or cancel this license – so usually the contractor will comply to avoid this happening.

Click this link to the Home Warranty Scheme Premium Table:

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