We received an enquiry from a licensed trade contractor in the commercial sector asking “ I am already licensed as a Shopfitter but now I have been told that I need to upgrade to a Builder restricted to Shopfitting Licence”. This is a common question that we come across with our clients on a regular basis. Whether it be shopfitting, structural landscaping or the kitchen and bathroom renovation industry.
We thought that it would be beneficial to explain the differences between a trade contractor licence and a restricted builder licence. Our information is specifically targeted to those working in NSW and QLD however the general rule of thumb will span across most States.
Our article is about raising awareness, you may well be complaint. Every situation is different so sometimes different rules apply. What we are trying to illustrate is that IF something goes wrong, you really need to make sure that all your ducks are in a row,
What is the difference between a Trade Contractor Licence and a Restricted Builder Licence?
The technicalities of what you can and can’t do a licensed trade contractor can be confusing! You can obtain statutory warranty or construction insurance with your trade contractor licence and your financial position, so what can go wrong?
As a licensed trade contractor, under your scope of work, your licence allows you to do the following:
- Personally carry out the work for which you are licensed;
- Contract to both builders and home/building owners; and
- Subcontract out any work that is covered in your licence scope.
From a licensing perspective, it does not allow you to enter a contract or subcontract work, outside of your scope, despite obtaining insurance for the contract.
A restricted builder licence, DOES allow you to enter a contract and subcontract for specific work included with your Restricted Builder Licence. This applies to QBCC Builder restricted to Shopfitting, Builder restricted to Structural Landscaping, Builder restricted to Kitchen, Bathroom and Laundry and Builder restricted to Special Structures – Shade Sails and Signs.
An exception in the rule under QBCC licensing is Swimming Pool and Spa Construction. Even though it is classified as a QBCC Trade Contractor Licence, the scope under that licence, provides for trade coordination. This licence class historically was a Builder restricted licence in its own right, the common thread now is that you are still required to obtain the higher Certificate IV in Building and Construction units of competency to obtain this licence.
In NSW even though the names of the licenses issued are different, same jockey different horse. Trade Contractor licences in NSW do not allow trade coordination or specialist work that needs to be done as part of the overall contract. NSW Builder (restricted) licence classes that allow for trade coordination under the contract include Kitchen, Bathroom and Laundry Renovations, Structural Landscaping, Swimming Pool Construction and Prefabricated Structures licensing.
What is trade coordination or specialist work that needs to be done as part of the overall job?
To break it down in basic terms, it covers subcontract work that you personally (or your company) are authorised to undertake under your licence. Of course, if you have a nominee that is licensed in an extended or higher scope of work, different rules apply.
All this work must be carried out by an appropriately licensed subcontractor and cannot be a part of your contract or subcontract with a builder or owner. Below we have provided two practical examples to provide you with a better understanding.
Practical examples about the difference between a trade contractor licence and a restricted builder licence.
Case Study One: Builder restricted to Kitchen, Bathroom and Laundry: Kitchen, Bathroom and Laundry Renovations
Let’s say you are licensed cabinetmaker or plumber. You are taking on Kitchen, Bathroom and Laundry Renovations. From a licensing perspective, technically and under your licence, you are not allowed to contract for the project for any other work outside your specific scope… say tiling, panting or waterproofing work. If you have an upgraded licence, you can. Obviously, your subcontractor must be licensed for the work! This also extends to any electrical work.
In addition, unless you can couple your Restricted Builder Licence with say Carpentry, you will in breach if the contract includes any structural work. Kitchen, Bathroom and Laundry licences in isolation are non-structural face lifts!
Case Study Two: Builder restricted to Structural Landscaping: Structural Landscaping
Let’s say you are licensed for paving or retaining walls. You are taking on a structural landscaping project that includes plumbing, electrical or blocklaying work. From a licensing perspective, technically and under your licence, you are not allowed to contract for the project for any other work outside your specific scope. If you have an upgraded licence, you can. Again, you must have a written subcontractor agreement with a licensed subcontractor for the work.
If this is your sector of the industry, you also must be careful, from a licensing perspective about paving or concreting for vehicular traffic or engineered retaining walls.
Where to from here?
Confused! Don’t blame you. Give us a call and we can explain in further detail and assist with getting your Builder Restricted Licence and whether you are compliant! We can explain what you need in practical terms.
