Lending your builders registration (Vic)

Have you ever been tempted to let someone else use your registration number?

Do you understand the ramifications of doing this?

The term ‘lend’ in the context of this information sheet is to give someone outside of your business structure the use of your registration number so they can obtain the building permit or worse, allow them to enter into a Major Domestic Building Contract. Usually in these instances you are not directly involved in the day to day business of constructing the building work. You may even consider that it is a reasonable risk just to call in now and again. Payment for your registration may also be a consideration that you think is worth it.

Your registration is your ticket to “self-employment” in the building industry and allows you to contract directly with owners for work over $5,000.  Warranty insurance is also directly related to your registration number.  So unless you intend to pack up and go and live on an island in the Pacific, then don’t lend you registration to anyone.

If you are willing to allow someone to use your registration, then should ever a complaint or insurance claim be made on the work, then YOU will be the one required to fix it, not the person who borrowed your registration number.

Should the work not comply with the relevant legislation and the Commission investigate and decide to take legal proceedings in a court of law, YOU will be included with the person who used the registration.  YOU will most likely be brought before the Victorian Building Practitioners Board (not the person who used the registration as they will not be registered) for unprofessional conduct and face possible cancellation of your registration and incur substantial fines.

Also consider that if YOU are convicted in a court of law, then YOU will have a conviction recorded against your name, which could affect future applications for warranty and other types of insurance, future employment prospects, credit rating and so on.

So think twice, is it really worth it?

For further information contact HIA Building Services staff on 1300 650 620 or by email vic_technical@hia.com.au

Ref Code: VIC LEG 06-08  

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.