QBCC licensing update – removal of the head contractor exemption

Abstract

In late 2013, significant reforms to the licensing regime in Queensland were introduced, including an amendment to permit unlicensed head contractors to subcontract building work to licensed subcontractors and thereby be exempt from the consequences and penalties associated with undertaking to carry out, and carrying out, unlicensed building works in Queensland. However, proposed amendments to the Queensland Building and Construction Commission Act 1991 (QBCC Act), which will commence on 24 July 2021 (unless proclaimed earlier) will result in this exemption being removed. This will mean that it will no longer be possible for an unlicensed head contractor to avoid contravening section 42(1) of the QBCC Act by subcontracting building work to a licensed party. Its removal will have industry wide repercussions, and going forward anyone who is carrying out building work as part of their scope should consider whether they need a QBCC licence of the appropriate class. Alex Power, Special Counsel of McCullough Robertson will provide an update as to the above reform and the status of QBCC licensing generally.