Changes to Building & Construction legislation instating life bans to go ahead 1 July 2015
In March 2015 we published an article in relation to the proposed changes to the provisions relating to Permitted Individuals and the Queensland Building and Construction Commission Act (Act).
The changes will see builders that are caught up in a failed building company banned for 3 years for one event and life for two events.
These changes have now received royal assent and will come into force on 1 July 2015.
The key changes are:
- An event now relates to a construction company or bankruptcy of an individual. This change means that only events that relate to a company that was in the construction industry will trigger an event.
- A person with an event will receive an automatic 3 year ban.
- The provisions in relation to the definition of what constitutes an event, especially where there are multiple companies involved have been expanded to be more inclusive and allow for group companies to be treated as one event. However it is important that the right advice is obtained in relation to the number of events that may occur as this will now have serious implications to a person’s licence.
- If a person has two or more events you will receive a lift ban.
- There is no longer any recourse to apply to become a permitted individual under the Act.
The effect of these changes will mean that if a person has an event occur, they will automatically face a three year ban. If a second event occurs then they receive a life ban.
This will have a massive effect on the building and construction industry. If you hold a QBCC licence, know people that hold a QBCC licence or act for QBCC licensees, then this information is crucial to know. It is likely to affect many types of business decisions, including who you enter into contracts with and what you do with a bad debt.
It is important to note that the changes come in to force on 1 July 2015, so if the event occurs prior to this date you may still be able to apply under the old regime to become a permitted individual. However, for any event occurring after 1 July 2015, it will become paramount that the right advice is obtained from construction clients in the event that their company faces financial difficulties.
As we noted in our article in March, these changes are an extraordinary erosion of natural justice and will lead to unfortunate outcomes for those people who get caught up with rogues or belligerent head contractors who use their larger bargaining position to withhold paying their contractors for work performed.
Free seminar in Building & Construction legislation change
Streten Masons Lawyers is holding a free seminar on Thursday 23rd July for Building & Construction professionals to learn about the changes. The event will cover
- Recent changes to the BCIPA legislation and how they affect you;
- Case studies on how the Act has been put to good use to achieve payment quickly;
- Tips for builders and contractors to ensure you are paid;
- A Questions & Answers session with an experience Building & Construction lawyer.