The Queensland Home Warranty Scheme

Believe it or not, the Queensland Home Warranty Scheme can apply even before the actual construction of your home begins. 

The Queensland Building and Construction Commission (QBCC) is the State’s building industry regulator. We administer the Queensland Home Warranty Scheme for all residential construction work performed by 
a QBCC licensed contractor over the value of $3,300. This cover provides some protection against defective and incomplete work.

Here's 5 important steps to guide you through the beginning of the building process!

1. Use a licensed contractor
  • ​QBCC-licensed contractors are required to collect from you, the premium for 
cover under the Queensland Home 
Warranty Scheme.
  • Visit the QBCC website and use our 
Find a local contractor search to locate a QBCC-licensed contractor in your local area.
2. Get 3 quotes from licensing contractors
  • Make your intentions clear to all quoting contractors (e.g. plans, specifications), so they all understand exactly what work you want done. When you receive the quotes, ensure they cover the same work so you can make an accurate comparison. Remember, you need to compare apples with apples.
  • ​The cheapest quote is not always the best. 
If one quote is significantly less than the others, ask why. If no satisfactory response can be provided, you should avoid contracting with this builder. Keep in mind the old adage: if it sounds too good to 
be true, it probably is. A price below fair market value will leave you out-of-pocket if the work is not completed and you need to make a claim.
  • Talk through the process so you are completely aware and comfortable 
with the plan of your building project.
3. Use a contract
  • We offer free contracts for peace of mind.
  • ​Check all line items in your contract, such as names of the parties, name of the contractor, licensee number, dates, description of work, any plans and specifications for the subject work, date of practical completion, cooling off period etc.
  • Get a fixed price for the work so you can ensure the project does not exceed your budget. Avoid cost-plus contracts and construction management contracts which can lead to cost blow-outs if not managed properly. Cost-plus and construction management contracts will also not 
entitle you to make a claim if the works 
are left incomplete.
  • Your contractor is required to supply you with a copy of the Consumer Building Guide before a domestic building contract is signed, for any work valued at $20,000 or more.
4. Keep an eye out for your Notice of Cover
  • If you've signed a contract for residential construction work, we send you a Notice of Cover, which provides details of the work, the builder and the premium paid. Please ensure you have this before the work begins.
5. Keep in regular contact with your contractor
  • Probably the most important ingredient of a successful project is good communication. Have regular meetings and establish a time to talk through any issues as they arise.
  • Sit back and watch your dream come together!

The above steps can help you to
 avoid the following:

  • Losing protection under the Queensland Home Warranty Scheme
  • Overpaying your builder or contractor
  • Paying before a stage of work is complete (this affects your entitlement to compensation if you have to make a claim)
  • Poor contractual outcomes
  • The pitfalls associated with cost-plus and construction management contracts (these contracts are complex and aren’t covered under our insurance)
  • Building dispute problems

The Scheme covers your home for a period of six years and six months from the date the premium is paid, a contract is entered into or work commences (whichever is earliest). If things don’t go to plan, try to work with your contractor to resolve the matter. If you're unable to find a way forward during construction, our early dispute resolution service is available. If the work is complete, you can lodge a defective work complaint via our website or by calling us.

Please note this information is for general educational purposes only. The QBCC has made every attempt to ensure the accuracy and reliability of the information provided. No warranties or representations of any kind, expressed or implied, are given as to the suitability or otherwise of the information to your particular circumstances. This blog post is not intended to be comprehensive 
and you should always seek your own independent legal advice.

Need more information? Read more about the Queensland Home Warranty Scheme or call us on 139 333.