A cost-plus contract is a contract under which a contractor is paid for all construction-related expenses, including materials and subcontractor charges, plus an agreed percentage or fixed sum to allow for a profit.
This type of contract was previously prohibited for domestic building work, unless certain strict conditions were met.
Under new legislation, cost-plus contracts are now treated like any other contract and are therefore subject to the usual Level 1 and Level 2 contract requirements, depending on the estimated value of the work.
Today female plumbing licensees rubbed shoulders with the Minister for Housing and Public Works and Minister for Science and Innovation, the Honourable Leeanne Enoch MP, and the QBCC Acting Commissioner, Kellie Lowe, at the inaugural Women in Plumbing Breakfast.
This event was held in order to recognise the contribution of women to the plumbing industry in Queensland.
Plumbing, like many trades, has been a male-dominated industry for many years, although the past few years have seen an increase in the number of women getting licensed.
The easiest and cheapest way to make sure your domestic building contract complies with legislation introduced earlier this year is to use a standard form contract produced by the QBCC or a major industry association.
Acting Commissioner of the QBCC, Kellie Lowe, said the changes, introduced on 1 July, helped create a level playing field for all parties to the contract and clearly specified the minimum requirements for domestic building contracts in Queensland.
A licensed building company and its nominee must make sure that building work carried out by the company is personally supervised by the company’s nominee or an employee who holds a licence of the relevant class that authorises supervision of the building work.
The maximum penalty for a company failing to meet this requirement is $117,800.
If the building site is under the control of an appropriately licensed person, other employees in a supporting supervisory role are not required to be licensed unless they are engaged as contractors.