As of the 28th of October 2016, The Queensland Building and Construction Commission (QBCC) have expanded The Queensland Home Warranty Scheme. The Scheme affects all contracts signed on or after the 28th of October 2016. The scheme has been expanded to cover additional building work including the installation of manufactured homes, swimming pools and more.
What is the QBCC?
The Queensland Building and Construction Commission (QBCC) regulates the Queensland building industry. They issue licenses to contractors, provide a dispute resolution service and administer the home warranty scheme which provides insurance cover for residential construction work within the state.
Licensed contractors must pay an insurance premium on behalf of the consumer for residential works carried out. The home warranty scheme covers loss to the consumer where the licensed contractor does not finish the job or fails to rectify defective work.
What does the scheme include?
The Home Warranty Scheme now includes the following work if it is carried out by a licensed contractor and the value of work is over $3,300:
- A manufactured home fixed to land in a residential park.
- Swimming pools constructed, erected or installed on residential property.
- Further items are covered when it comes to a roofed, residential building (e.g. dwelling or shed) including:
- All external and internal works within the building envelope (e.g. painting, plastering, glazing, tiling, roof restoration and repair work).
- Anything that needs building or plumbing approval that is attached to the building.
- An external part of the building that has no other supporting structure such as an awning.
- An access ramp or stairs that are permanently attached to the building.
- Further item covered in relation to plumbing and drainage for a dwelling or related roofed building:
- Stormwater drainage (e.g. fixing a broken downpipe or gutter)
- Primary water supply building work (e.g. a water tank that is used for primary water supply)
- Sewerage or drainage building work (e.g. connecting a residence to the sewerage main)
Please note, everything covered previously will still pertain to the new scheme.
Impacts to licensed builders and consumers
The recent changes to the law affect a large array of industries. If a licensed contractor engages in a contract to carry out painting, tiling or plastering, for example, and the cost of works is over $3,300 you will now need to pay QBCC insurance for the first time. This includes pool builders that are not contracted by a builder.
If you are a subcontractor, you will not need to pay the insurance. The head contractor will lodge one premium to cover all works.
Please note, if you have clients that sign a contract after the 28th of October, you may need to notify them and adjust your prices accordingly.
Where do I find out more about the scheme?
Download the information sheet here.
If you want more information about the scheme, please contact the QBCC directly: