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Do you engage contractors in Queensland?
Contractor Compliance Checklist
Contractor compliance is the process of ensuring that as a builder, you have all the required and necessary information from your contractor(s) to ensure that they do not pose a risk to themselves or your business. This means obtaining all the correct business information, licenses, insurances, and other legal paperwork and ensuring that this information is up-to-date and accurate.
Why is contractor compliance important?
Good contractor compliance is all about reducing risk to your business. It is all well and good to have your contractor provide you with the necessary information, but often at times this information is expired or inaccurate and therefore, non-compliant.
For example, a contractor may provide you with a copy of the Queensland Building and Construction (‘QBCC’) License number, but in actual fact, they may be unlicensed. This could be because they have failed to pay their renewal fee or are suspended or restricted from certain types of work. Not only would this situation pose risk to the contractor, but as a business, if you do not check the information provided is up-to-date and accurate, your business may be at risk of significant financial and license penalties.
So what should you request from your contractors?
In Queensland, you should be collecting the following information from your contractors:
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Business details |
ABN and GST registration |
You can check an ABN and whether that business is registered for GST at ABN Lookup Register You may also need to check ASIC Connect if the contractor is a company or trust |
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Licenses |
Queensland Building and Construction Commission License White Card (General Construction Induction Card) High Risk Work License – where applicable Queensland Electrical Contractor License – where applicable |
You can check a contractor’s license at QBCC License Search. You should check the license class, conditions, and/or restrictions on a contractor’s license You must ensure that you check that the contractor holds this card (or a statement of attainment of the course being completed) |
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Insurances |
Public Liability Insurance Personal Accident/Sickness and Income Protection Insurance (covers sole trader contractors) Workers Compensation Insurance (covers the contractors’ employees) Consumer Protection Insurance |
You can check Certificates of Currency. You should ensure the insurance policy has adequate coverage This insurance is compulsory for electrical contractors and is usually issued as an endorsement on a Public Liability Insurance policy |
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Written contract |
A contract outlining the terms and conditions of your agreement with your contractor |
HIA have Project Trade contracts available where a contractor is engaged for a single project Alternatively, a Period Trade contract may be suitable where you have an ongoing relationship with a contractor |
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