QBCC Nominee…
Nominee of a Company QBCC licensee
In Queensland, a company that provides building services in Queensland is required to apply for a Queensland Building and Construction Commission (‘QBCC’) licence. For a company to apply for a QBCC licence, it must nominate an individual to act as their “nominee”.
Pursuant to section 42B(1) of the Queensland Building and Construction Commission Act (‘QBCC Act’), if a licensee is a company, it must not perform buildings works unless the licensee has appointed a nominee who holds a contractor’s licence or a nominee supervisor’s licence for the building work carried out, or undertaken to be carried out, under the company’s class of licence.
Who can be a nominee?
The nominee must be an employee, director or secretary of the company, and must hold the same licence to the class that the company is applying for the entire time that the company holds the licence.
If a nominee resigns or ceases to meet the requirements of being a nominee, then there needs to be a replacement nominee and the QBCC must be notified of this change within 14 days.
What does a nominee do?
The nominee must ensure that the company’s building work is “adequately supervised”. It must employ and manage systems of supervision for the company. The nominee is responsible for the coordination of employees and contractors on each of its worksites and should carry out regular on-site inspections to ensure the building work is being carried out in accordance with the contract. If the nominee identifies any defects in the company’s work, they need to arrange for the rectification of those defects.
An individual can act as nominee for multiple companies. However, the individual should ensure that they can adequately perform the supervisory role of a nominee for all of those companies.
Penalties
If a QBCC licensee that is a company carries out buildings works without a nominee, penalties may apply. These are stipulated within section 42B(1) of the QBCC Act: –
- First offence – 250 penalty units;
- second offence – 300 penalty units; and
- third offence – 350 penalty units.
One penalty unit was approximately $133.45 as at 1 July 2019.
However, a licensee does not commit an offence if the period the licensee has not had a nominee is less then 28 days.
Importantly, an individual who contravenes section 42B(1) of the QBCC Act and is liable to maximum penalty units of 350 penalty units, commits a crime.
Need more information?
If you or someone you know wants more information or needs help or advice about this topic, please contact us on (07) 5458 6855 or email mklein@kleinlegal.com.au.
This is general information and does not constitute legal advice.