Business, Contract and Compliance Obligations
Operating a plumbing business
A licensed contractor in Queensland must meet business obligations beyond technical competence: holding the correct contractor licence, maintaining the nominee, keeping insurance (including home warranty insurance where residential work requires it, and public liability), and complying with QBCC financial reporting requirements. Understand the Queensland Building and Construction Commission Act obligations, including the requirement for written contracts over the threshold value, progress payment rules under security of payment legislation, and the trust account rules for deposits.
Contracts and consumer protection
Know what a compliant domestic building contract must contain: parties, scope, price, payment schedule, start and completion dates, and cooling-off rights where applicable. Understand the security of payment regime - payment claims, payment schedules, and adjudication timeframes. Understand that consumer guarantees under the Australian Consumer Law apply regardless of contract terms.
Traps to watch
- Assuming a quote is a contract; a quote is an offer until accepted.
- Missing the threshold above which a written contract is mandatory.
- Confusing deposit limits with progress payment entitlements.
- Forgetting that variations must be in writing and signed.
- Overlooking insurance requirements before starting residential work.
Worked example
A homeowner asks for extra work mid-project. The correct process is a written variation signed by both parties before the work proceeds, with the price and time impact recorded. Verbal agreement creates disputes and may breach the contract terms.
Rule of thumb
Before starting any job, confirm four things: licence, contract, insurance, and payment terms. If any is missing, do not start.