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

The new law takes effective starting 28th of October 2016 where it requires painting (and other trades – see below) industry the new process in collecting insurance premium for our governing body QBCC.

As a result of an inquiry by the 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 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 a warranty on our work that is 5 times longer than 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 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.

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

Click this link to the Home Warranty Scheme Premium Table:

We sincerely apologise 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