Residential Contracts
Contract Advice for Contractors
Wood L&M Solutions is very familiar with the extensive legislation that applies to domestic building work in Queensland under Schedule 1B of the Queensland Building and Construction Commission Act 1991 (QBCC Act).
QBCC is able to impose penalties for breaches of the requirements of Schedule 1B of the QBCC Act including fines and demerit points and can do so up to 3 years after the offence occurred as long as it is within 2 years of when the QBCC became aware of the breach. However, there are other serious consequences of a breach of the contract and/or Schedule 1B including some provisions in the contract being void and legally unenforceable, and some may also affect your right to payment or to take action under the terms of your contract.
We are able to review proposed residential building contracts for contractors and draft proposed special conditions. We can also provide advice on matters that arise during the construction of the home e.g. variation claims, extension of time claims, late completion.
Contract Advice for Clients
Wood L&M Solutions is very familiar with the extensive legislation that applies to domestic building work in Queensland under Schedule 1B of the Queensland Building and Construction Commission Act 1991 (QBCC Act).
We are able to review proposed residential building contracts for homeowners to ensure that it complies with Schedule 1B and draft proposed special conditions. We can also provide advice on matters that arise during the construction of the home e.g. variation claims, extension of time claims, late completion, and help you understand how to manage and administer the contract as the project progresses.
Requirements of Schedule 1B of the QBCC Act
The Domestic Building Contracts Act 2000 was replaced in July 2015 with Schedule 1B of the Queensland Building and Construction Commission Act 1991 (QBCC Act). There are a number of differences between these pieces of legislation, and we find that many in the residential sector of the industry still do not seem to be aware of these key differences – some of which may place the contractor in breach of Schedule 1B QBCC Act.
All contracts for domestic building work must meet the requirements of a ‘regulated contract’. A Level 1 regulated contract is required for all domestic building work with a contract price of between $3,300 and $20,000 (including GST). A Level 2 regulated contract is required for all domestic building work with a contract price over $20,000 (including GST).
A Level 1 Regulated Contract must be in writing, dated and signed by or on behalf of each party. It must include all of the following:
- names of each party including the name of the contractor as it appears on the contractor’s licence;
- contractor’s licence number as it appears on the contractor’s licence;
- a description of the work to be carried out under the contract;
- any plans and specifications for the work to be carried out under the contract;
- the contract price or the method for calculating it including the contractor’s reasonable estimate;
- a provision that states the date for practical completion or how the date is to be determined; and
- a conspicuous notice advising the owner of the owner’s right to withdraw from the contract within the cooling0off period under section 35 of Schedule 1B.
A Level 2 Regulated Contract must be in writing, dated and signed by or on behalf of each party. It must include all of the following:
- names of each party including the name of the contractor as it appears on the contractor’s licence;
- contractor’s licence number as it appears on the contractor’s licence;
- a description of the work to be carried out under the contract;
- any plans and specifications for the work including all plans and specifications relating to the Development Approval or other statutory approvals;
- the contract price or the method for calculating it including the contractor’s reasonable estimate;
- a provision that states the date for teh start of teh work atthe site, or how the date is to be determined;
- a provision that states the date for practical completion or how the date is to be determined;
- a statement of each of the statutory warranties that apply to the work; and
- a conspicuous notice advising the owner of the owner’s right to withdraw from the contract within the cooling-off period under section 35 of Schedule 1B.
A Level 2 Regulated Contract must also:
- if the contract price is fixed, include a statement in a prominent position on the first page of the contract schedule that the contract price is fixed;
- if the contract price is not fixed, include a statement in the contract schedule setting out the method for calculating the contract price;
- if the contract price can be changed under a provision of the contract, include a warning to that effect and a brief explanation of the effect of the provision allowing change to the contract price – both of which must be in a prominent position on the first page of the contract schedule; and
- not state the name of any person as the building contractor or so it may reasonably be mistaken to be the building contract unless the person is the building contractor under the contract.
Last updated: 30 December 2021