Every year, the Queensland Building and Construction Commission (“QBCC”) suspends or cancels hundreds of contractor licences due to compliance issues.

Last financial year, the QBCC suspended 648 contractor licences and cancelled 393 contractor licences under section 48 of the Queensland Building and Construction Commission Act 1991 (“QBCC ACT”).

The purpose of this article is to set out the legislative grounds and process for suspension or cancellation of a QBCC licence under section 48.

Grounds for Suspension or Cancellation under section 48

Section 48 of the QBCC Act states that the QBCC may suspend or cancel a licence under the following circumstances:

• the licence was obtained on the basis of incorrect information supplied to the QBCC, whether or not fraud was intended;^[1]

• the licence was obtained by fraud or other improper means;^[2]

• the licensee is a company and it ceases, for a period exceeding 28 days, to have a nominee holding a licence authorising supervision of building work of the appropriate class or classes;^[3]

• the licensee is convicted of an indictable offence, or an offence that, if committed in Queensland, would be an indictable offence;^[4]

• the licensee is convicted of any offence against the QBCC Act or the Building Act 1975;^[5]

• the licensee is convicted of an offence under the Plumbing and Drainage Act 2018, the WorkHealth and Safety Act 2011, the Electrical Safety Act 2002, the PublicHealth Act 2005, or another Act prescribed by regulation, in relation to building work carried out under the licence.^[6]

• the licensee contravened a condition to which the licence is subject or that is imposed on the licensee’s licence;^[7]

• building or other work on a building site under the licensee’s control may have caused the death of (or grievous bodily harm to) a person, or involved a serious risk to the health or safety of a person;^[8]

• the licensee owes an amount to the QBCC and fails to comply with a demand by the QBCC to discharge the debt;^[9]

• the licensee fails to comply with a written request by the QBCC made under the QBCC Act;^[10]

• the QBCC becomes aware of the existence of facts that, having regard to section 31(1)(a)^[11] or 31(2)(a)^[12], or 32(1)(g)^[13], or 32AA(1)(e)^[14], or 32AB(1)(d)^[15] which would allow it to refuse to issue the licence if it were now being applied for by the licensee, or to refuse to issue the licence originally.^[16]

• if the licensee holds or has held an interstate or New Zealand licence and the QBCC is satisfied that other licence has been suspended or cancelled.^[17]

Procedure for suspension or cancellation under section 48

The process for cancelling or suspending a licence under section 48 is as follows:

• Before cancelling or suspending a licence, the QBCC must give the licensee notice of its reasons for the proposed cancellation or suspension and allow the licensee 21 days from service of the notice to make written representations on the matter.^[18]

• The QBCC must consider any written representations made within the time allowed before imposing the cancellation or suspension.^[19]

• A cancellation or suspension is imposed by issuing a written notice to the licensee.^[20]

• The notice of cancellation or suspension must state the decision and the reasons for the decision,^[21] and the licensee’s QCAT review rights including details of its review application period and process and any right to have the decision stayed.^[22]

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.^[23]

A licensee (or former licensee) whose licence is suspended or cancelled must also return their licence (and licence certificate if one was issued) within 14 days of receiving notice of the suspension or cancellation.^[24] Failure to do so without reasonable excuse is an offence, with a maximum penalty of 80 penalty units (currently $10,960).^[25]

Is the QBCC’s decision to suspend or cancel reviewable?

A decision of the QBCC to suspend or cancel a licence or permit is a reviewable decision for the purposes of an internal review or Queensland Civil and Administrative Tribunal (“QCAT”) review.^[26]

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

Last financial year (2020 to 2021) the QBCC suspended 648 licences and cancelled 393 licences under QBCC Act section 48.

Section 48 sets out numerous grounds under which a licensee’s licence can be suspended or cancelled.  Suspension or cancellation of a contractor’s licence can have a catastrophic effect on their business and finances.

This can be a complex area of law, and strict deadlines apply. 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 with a view to preventing the QBCC from suspending or cancelling your licence, or to set aside any adverse decision to do so.

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Footnotes

[1] QBCC Act, section 48(1)(a).

[2] QBCC Act, section 48(1)(b).

[3] QBCC Act, section 48(1)(d).

[4] QBCC Act, section 48(1)(c).

[5] QBCC Act, section 48(1)(e)(i).

[6] QBCC Act, section 48(1)(e)(ii); 48(3).

[7] QBCC Act, section 48(1)(f).  This additionally includes the statutory requirement that the licensee’s financial circumstances must at all times satisfy the minimum financial requirements for the licence: section35(5).  

[8] QBCC Act, section 48(1)(g).

[9] QBCC Act, section 48(1)(h).

[10] QBCC Act, section 48(1)(i).

[11] I.e., whether an applicant is a fit and proper person to hold the licence.

[12] I.e., whether a director, secretary or influential person for the company is a fit and proper person to exercise control or influence over a company that holds a contractor’s licence.

[13] I.e., whether an applicant for a nominee supervisor’s licence is a fit and proper person to hold the licence.

[14] I.e., whether an applicant for a site supervisor’s licence is a fit and proper person to hold the licence.

[15] I.e., whether a fire protection occupational licence or a mechanical services occupational licence applicant is a fit and proper person to hold the licence.

[16] QBCC Act, section 48(1)(j).

[17] QBCC Act, section 48(2).

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

[19] QBCC Act, section 49(2).

[20] QBCC Act, section 49(3).

[21] QBCC Act, section 49(4); Queensland Civil and AdministrativeTribunal Act 2009 (“QCAT Act”), section 157(2)(a) & (b).

[22] QBCC Act, section 49(4); QCAT Act, section 157(2)(c), (d) & (b).

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

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

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

[26] 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.