BPB Registration vs company registration (Vic)

Does the company or partnership that you trade under have at least one director or partner registered in the appropriate category with the Building Practitioners Board?

Let’s say you work in the new home market and you trade as ABC Constructions P/L, being the company registration. Then for ABC Constructions to trade and not be subject to offences under the Building Act or the Domestic Building Contracts Act (DBC Act), then one of the directors must be registered as either a Domestic Builder Unlimited or Domestic Builder Manager by the Building Practitioner’s Board (BPB).

If the company does not have a director registered by the BPB, then the company could face substantial fines in a Magistrate’s Court if found guilty under the Building Act and DBC Act. It matters little if the company employs a registered builder, it is the director who has to be registered, not an employee. The same rules apply to partnerships.

These rules do not apply to people operating as a sole trader under their natural name or a business name. However, remember a business name is a name only and is very different to a company or partnership structure.

Whilst the BPB registration system only registers the natural name of a person, the Building Act and the DBC Act requires an additional level of compliance for companies and partnerships. This additional requirement is not well understood amongst all practitioners.

In the case of a drafting company, for example, the BPB registration requirement is for a director to be a draftsperson. If the director happens to be registered as commercial builder, then the company cannot trade as a drafting company in offering services to the general public, they could only construct commercial buildings, or design and construct their own commercial projects.

Although the legislation only requires one director or partner to be registered, it is recommended that consideration be given to the appointment of an alternative director (who is registered in the appropriate category) in the event that a director dies, resigns or becomes bankrupt or is otherwise ineligible to be registered as a building practitioner. In the case of a partnership complex legal issues arise and legal advice should be sought.

For further information HIA members can contact HIA’s Building Services staff on 1300 650 620 or hia_technical@hia.com.au.   

If you would like to become a HIA member, contact 1300 650 620 or enquiry@hia.com.au

Ref No. VIC LEG 08-13

The above is intended to provide general information in summary form. The contents do not constitute specific advice and should not be relied upon as such. Formal specific advice should be sought by members with respect to particular matters before taking action.  ABN 99 004 631 752