The Building and Other Legislation Amendment Bill 2022 (Qld) has been introduced into Queensland Parliament. If passed, the QBCC 'Head Contractor Exemption' will not be abolished, as previously foreshadowed. However, the Bill makes provision for future regulations that may require particular head contractors to hold a licence, e.g. those who engage in high-risk work.

The Bill will come as a relief to many head contractors, developers and foreign entities. It means they will not have to obtain a building licence or ensure that building works are completed before 24 July 2022.

Background

Section 42(1) of the Queensland Building Construction and Commission Act 1991 (Qld) (QBCC Act) states that it is unlawful to carry out, or undertake to carry out, building work without the appropriate licence.

However, since late 2013, section 8, Schedule 1A of the QBCC Act has included what is called the 'Head Contractor Exemption'. This allows a head contractor, developer or foreign entity to enter into a building contract to perform building work in Queensland without a QBCC licence – on the condition that the building work is subcontracted and performed by licenced subcontractors. The exemption was originally set to be abolished on 24 July 2021 but was extended till 24 July 2022.

The change

The Bill, if passed, will continue to allow a head contractor, developer or foreign entity to enter into a building contract to perform building work in Queensland without a QBCC licence – on the condition that the building work is subcontracted and performed by licenced subcontractors.

However, the Bill makes provision for future regulations that may require particular head contractors to hold a licence, e.g. those who engage in high-risk work. The Bill indicates that 'high-risk work' involves work that impacts life safety, such as mechanical services or fire protection.

Provision for these future regulations will limit concern surrounding the current exemption and will allow Government to respond to emerging issues as they arise, while also facilitating commercial contracting by allowing most unlicensed head contractors to continue entering into building contracts that offer to procure building work.

The Transport and Resources Committee will debate and consider the Bill.