Every year the Queensland Building and Construction Commission (“QBCC”) suspends hundreds of contractor licences - usually after giving notice of its intention to do so and providing the contractor with an opportunity to make written submissions as to why the licence should not be suspended.

Occasionally however, under certain circumstances the QBCC will immediately suspend a contractor’s licence without having first provided the contractor with any opportunity to object to the suspension.

The purpose of this article is to set out the legislative provisions regarding immediate suspension of a QBCC licence under section 49A of the Queensland Building and Construction Commission Act 1991 (“QBCC ACT”).

Grounds for Immediate Suspension under section 49A

The QBCC may immediately suspend a licensee’s licence without allowing the licensee time to make written representations before the suspension takes effect if the QBCC reasonably believes there is a real likelihood that serious financial loss or other serious harm will happen to any of the following, if the licence is not immediately suspended:^[1]

• other licensees;

• the employees of other licensees;

• consumers; or

• suppliers of building materials or services.

Procedure for immediate suspension under section 49A

If the requisite grounds exist to do so, the QBCC can impose an immediate suspension on a licensee by giving the licensee a written notice stating:

• the decision and the reasons for the decision;^[2]

• QCAT review rights, the QCAT review application period and process, and any right to have the decision stayed;^[3]

• that the licensee may make written representations for a lifting of the suspension;^[4] and

• briefly how the suspension could lapse.^[5]

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The QBCC must record details of any cancellation or suspension of the licensee’s licence and the circumstances that led to the cancellation or suspension in the public register of licensees under the person’s name.^[6]

Lapsing of the section 49A immediate suspension

Once imposed, the immediate suspension will lapse if, within 10 days after the licensee is given notice of the suspension, the QBCC has not given the licensee a "section 49 notice".^[7]

If the QBCC issues the licensee a "section 49 notice" within the 10 days, then it has 3 months to suspend or cancel the person’s licence under section 48,^[8] unless the QBCC extends that 3-month period further.^[9]

The QBCC can extend the period of 3 months if it appears to the QBCC that, in the circumstances, it is in the interests of the licensee to do so.^[10] The period may be extended more than once, but whenever it is extended, it must not be extended for more than 1 month.^[11]

The immediate suspension will automatically lapse upon the QBCC suspending or cancelling the licence under section 48.^[12]

Return of the cancelled licence

A licensee (or former licensee) whose licence is suspended or cancelled must return their licence (and licence certificate if one was issued) within 14 days of receiving notice of the suspension or cancellation.^[13] Failure to do so without reasonable excuse is an offence, with a maximum penalty of 80 penalty units (currently $10,960).^[14]

Is the QBCC’s decision to immediately suspend a licence reviewable?

A decision of the QBCC to suspend a licence or permit is a reviewable decision for the purposes of an internal review or Queensland Civil and Administrative Tribunal (“QCAT”) review.^[15]

A decision of the QBCC may also be subject to judicial review upon strictly limited grounds by the Supreme Court of Queensland under the Judicial Review Act 1991.

Conclusion

Section 49A sets out the grounds under which a licensee’s licence can be suspended without providing the licensee any opportunity to object to the suspension prior to it being imposed.  Immediate suspension of a contractor’s licence can have a catastrophic effect on their business and finances.

This can be a complex area of law which features strict deadlines for the exercise of response and review rights.  Given the serious consequences involved, if you receive a QBCC Notice you should immediately contact Law Force Lawyers to obtain competent, independent legal advice regarding your particular circumstances, the validity of any adverse decision made against you, and the options that may be available to you to contest adverse QBCC regulatory action directed against you or your business.

For practical legal advice, and effective support and assistance regarding your particular circumstances, contact Law Force Lawyers on 1300 445 000, or by email to info@lawforce.com.au. We provide focused, independent, effective advice and services and are ready to step in against the QBCC to save your licence and possibly your livelihood.

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Footnotes

[1] QBCC Act, section 49A(1).

[2] QBCC Act, section 49A(2); QCAT Act, section 157(2)(a) & (b).

[3] QBCC Act, section 49A(2); QCAT Act, section 157(2)(c), (d) & (e).

[4] QBCC Act, section 49A(2)(a).

[5] QBCC Act, section 49A(2)(b).

[6] QBCC Act, section 99(3)(g).

[7] QBCC Act, section 49A(3)(a).

[8] QBCC Act, section 49A(3)(b).

[9] See QBCC Act, section 49A(4) & (5).

[10] QBCC Act, section 49A(4).

[11] QBCC Act, section 49A(5).

[12] QBCC Act, section 49A(3)(c).

[13] QBCC Act, section 53(1).

[14] QBCC Act, section 53(3).

[15] QBCC Act section 86(1)(k). I.e., a decision under section 56AF or 56AG.

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Disclaimer – Reliance on Content

The material distributed is general information only. The information supplied is not and is not intended to be, legal or other professional advice, nor should it be relied upon as such. You should seek legal or professional advice in relation to your specific situation.