Construction

25 May 2007

QBSA Act – the issue

The Queensland Government introduced The Queensland Building Services Authority and other Legislation Amendment Bill 2007 (Bill) into the Queensland Parliament on 22 May 2007. The Bill proposes a number of significant amendments to the Queensland Building Services Authority Act 1991 (Act). The amendments are designed to achieve a number of the Government’s policy objectives in response to perceived weaknesses in the building and construction industry.

The first issue that the Bill addresses arises from research conducted by the Building Services Authority (BSA) which indicates that a lack of appropriate on-site supervision is significantly impacting on the quality of building work in Queensland.

Secondly, a Government review of the Act has recommended that some of the maximum penalties are disproportionately low compared to other similar legislation. In order to ensure the deterrent effect of the penalties are sufficient, the Bill proposes that maximum penalties, particularly for the more serious offences under the Act, be increased.

Thirdly, the Government has identified a number of new offences that should be inserted into the Act. In conjunction with the new offences the Bill proposes further categories of offences that will attract demerit points.

Lastly, the Bill proposes the insertion of specific provisions dealing with the responsibilities of construction managers to be licensed and to adequately supervise licensed contractors.

The Amendments

Lack of appropriate on-site supervision

The Bill proposes to widen the pool of persons who may personally supervise building work to include licensed contractors other than officers or employees of the contractor. The licensed contractor will still only be able to supervise work for which they are appropriately licensed. Applicants will also need to demonstrate that they have had 12 months of existing supervising experience before being eligible.

Increase in penalties and categories of demerit offences

The Bill proposes that new offences be inserted into the Act to address building contractors who:

• provide false documents or information to the BSA
• fail to have an appropriately licensed nominee
• obstruct a BSA Inspector
• advertise to carry out building work without a licence, and
• fail to keep documents relevant to obligations under the Act.

In addition, the expanded category of demerit point offences will relate to:

• failure to rectify defective building work under a BSA direction
• failure to pay a statutory insurance premium, and
• failure of a company to have a nominee.

Responsibilities of construction managers

Under the same policy guise of increasing supervision in the industry, the Bill provides that construction managers, whether they be a company or individual, must ensure that building work carried out by licensed contractors is personally supervised by personnel with the relevant supervisor's license.

It is foreshadowed that the amendments will come into effect in September 2007 and if the Bill passes without amendment then it raises serious questions in respect of whether supervisors and contractors are adequately or appropriately licensed.

Members of the building and construction industry should pay particular attention to the expanded range of demerit point offences and new offences proposed by the Bill.

If members of the building and construction industry are unsure or in doubt as to whether they are adequately or appropriately licensed or alternatively, of whether they would potentially run foul of the new demerit point offences or new offences, then we are able to assist.

For further information, please contact Bill Morrissey or Russell Thirgood.