Law Clarified
Law Clarified
Ep 3: Owners Hour - Understanding the QBCC
Hi Queensland property owners!
Welcome to Episode 3 of our Owners' Hour Series!
In this episode we discuss the role and functions of Queensland's building industry regulator, the Queensland Building and Construction Commission or QBCC.
We give a brief overview of the Queensland Home Warranty Insurance Scheme and discuss the kinds of decisions the QBCC makes and how these decisions can impact your building project.
We laugh about how we always left our assignments at law school to the last minute, but our main point is to encourage homeowners to do what we say and not what we do …. take action early if you find yourself in a situation where you need the QBCC's assistance or involvement in your building project.
Building or renovating a home is a huge financial and emotional investment. We want to make sure you have everything you need to take away some of the stress or worry with building or renovating your dream home.
Got some thoughts on today's episode? Please join our conversation on our Instagram page @hearthstonelegal.bne
Check out our website: https://www.hearthstonelegal.com.au/
Send us an email: law@hearthstonelegal.com.au
Thanks so much for listening!
**DISLCAIMER: Please note, topics discussed in this podcast are for general information and entertainment purposes only and do not constitute or seek to replace legal advice and should not be applied to your individual circumstances. Please seek qualified legal advice**
Hi everyone.
Speaker 2:Hello. Welcome to Am I everyone? Yes. Yeah, you are.<laugh>.
Speaker 1:Welcome to episode three of Owners Hour. This episode we are talking about the Q bcc.
Speaker 2:Yes. The Queensland Building and Construction Commission. We
Speaker 1:Have a lot of experience in and against this organization. Yes.
Speaker 2:We've both worked.
Speaker 1:We have for
Speaker 2:The building industry regulator,
Speaker 1:We have, um, and that comes in handy. It does
Speaker 2:Come in handy from time to time. I mean, the organization evolves and processes and policies evolve. Um, and we may not know the ins and ins and ins, but That's right. We definitely know what its role and purpose is. Yes. And how it seeks to fulfill those. So
Speaker 1:Yes,
Speaker 2:That's where we can add some value.
Speaker 1:We are going to help our owner listeners today get a bit of an understanding of what that
Speaker 2:Looks like. Mm. So let's
Speaker 1:Do it. Let's jump in.
Speaker 3:Half stone legal presents a real talk of the good, the bad, and everything in between for all things business and construction law, whether it's navigating a dispute, the Q BCC or guidance on a contract. We give you a rundown of some of the dues and the don'ts. These are digestible chats on topics that you might hear in our office of an afternoon. Daunting. Not anymore. Here's law clarified.
Speaker 1:Okay. Qbcc
Speaker 2:Qvcc.
Speaker 1:I think this might be controversial. Oh,
Speaker 2:We're starting out of the blocks. Whi controversy.<laugh>. I
Speaker 1:Think the Q BCC one is very largely misunderstood, and two, I think we get very conflicting views about the Q bcc. We have a lot of builders who rightly think that the QCC advocates for owners
Speaker 2:Mm-hmm.
Speaker 1:<affirmative>. We also get a lot of owners who think that the Q BCC advocates for builders or is just intent on rejecting their complaints.
Speaker 2:Yeah.
Speaker 1:I I think that would be a fair summary.
Speaker 2:Yeah. And I think it just points to the complexity of building and construction. Yes. Like there's, there's two sides to the contract or the build or the project. Very different perspectives, you know, and the QVCC and its regulatory function is trying to find a balance between competing perspectives and interests. Sometimes people will think it gets it right, sometimes people will think it gets it very wrong.
Speaker 1:Yeah. And I think you've hit the nail on the head there. When I think about what the QBCC is, it is the regulator of the building industry. It theoretically doesn't pick aside.
Speaker 2:It is and it shouldn't.
Speaker 1:It shouldn't. Even though sometimes we understand it feels like it might. Um, but its job is to regulate, not to advocate on either party, um, either party's behalf. And it's not there to prefer one side over the other. Mm. And there's lots in the news, you know, with the building industry where it is with the Q bcc, it's not doing enough. It's doing too much. It should be doing this, it should be doing that. It's, let me down. It should have saved me that. There's lots of stories narrative around the Q bcc, some of which probably is valid, is valid concerns and complaints, but probably also is based on a little bit of misconception.
Speaker 2:Yeah. Yeah. I mean, we will not, and do not have time to get into the complexities of making policies and laws around the building industry. It's so complex. It is. And, you know, not what we are here to do. But, um, but the comment I'll make is it is very complex when you're trying to balance and regulate, you know, builders, um, and their businesses and owners and their interests. Yep. It's very complex. It
Speaker 1:Is. So I've
Speaker 2:Always maintained that, you know, building and construction, um, disputes, um, and the work that we do, uh, is just as heated, complex, complex and emotional as like family disputes and other form, you know, those kinds of disputes. There's a lot at stake for everybody. Everybody. Yep. Um, involved
Speaker 1:<laugh>, it's funny you say that because I dunno whether you experienced this as a young lawyer. Um, when I went through law school, back when the dinosaurs roamed the earth,
Speaker 2:Um,
Speaker 1:I remember thinking about all of the parts of the law that I didn't want to do mm-hmm.<affirmative> and no disrespect to family lawyers. They do an amazing job. I just don't have the, the patience or the fortitude for that because it is so, there's so much conflict, there's so much, um, discontent in, in those disputes
Speaker 2:Mm-hmm.
Speaker 1:<affirmative> and you're so Right. Building and construction really is not that much different. It's,
Speaker 2:It's really not. And it's really
Speaker 1:The same. We've
Speaker 2:Gone, taken us down a bit of a rabbit hole. But if, if, if at the end of, well, during my university, like my my law school<laugh> Yeah. Going to law school, if I had any idea what would be involved in being a legal practitioner in, in building construction and commercial litigation, if I, I knew what that actually meant and what it entailed, I probably would've stayed away from that career path. Cuz you know, we, it it's, it's emotional. It
Speaker 1:Is.
Speaker 2:It is. For rightly so, for a number of reasons. There are businesses at risk, finances at risk, relationships at risk when things don't go as planned. Yeah. There's a lot at stake. Yep. Um, and we could probably do an entire podcast episode or perhaps series talking about some of the situations and the stories that we've had to support people through Yes. As litigation lawyers, the number of stories we could talk for ages. Mm. But what's common across all of those I is is the emotion in it. Yes. Yep. Um, and they don't teach you how to be a counselor No. Or a predictor of human behavior law
Speaker 1:School. No, they don't.
Speaker 2:Those skills might be helpful. Yeah. I'm not quite sure.<laugh>, sometimes I feel like a quasi counselor.
Speaker 1:Yeah. You do have to listen because
Speaker 2:You've gotta listen to people. This matters. Yeah. It, it, it's everything.
Speaker 1:It's their home. It's their castle. It's their, you know, it's their often their dream, their retirement, their exactly. Dream house that they only get one chance at
Speaker 2:Working for decades to save, to build this dream home. And from the builder's perspective, they're trying to run a business. They're employing people, they're responsible for people in their wages. You know, a lot at stake. We're here to talk about the QVCC work.
Speaker 1:<laugh> just let's get back on track. Let, let's, let's swing it round. Let's
Speaker 2:Just go back to the point of the episode. Maybe we should do some story sharing. Yeah.
Speaker 1:Maybe. Yeah.
Speaker 2:We'll write that down on the ideas board. Yes.
Speaker 1:Yep. Chuck it on. Put a pin in that put pin come back to the episode. Yep. So the Q bcc, the regulator, we did touch on it in the builder series. Mm-hmm.<affirmative> our toolbox Tuesday, um, episodes in relation to as a builder, how the Q BCC can and can't assist and how it might make decisions that impact you. It's the same for homeowners. Mm-hmm.<affirmative>. So primarily, um, one of the things as a homeowner you have to do is contribute to the cost of insurance. Mm-hmm.<affirmative> or the building work that is being done at your house. And usually that forms part of the deposit and the builder pays that on your behalf. You get a little insurance certificate. Um, I think some people think that that's just an open slither insurance policy.
Speaker 2:If you've got an insurance policy, you're covered for everything. But
Speaker 1:There's always
Speaker 2:Exclusions. There's always exclusions, which always limitations can
Speaker 1:Be really
Speaker 2:Disappointing.
Speaker 1:Mm. And one of the things I'd like to talk about first is there are some really strict time limits Yes. On making claims to the Q bcc. Yes. Back in the day when you and I were there, there was a fair bit of discretion. The QB CCC had some discretion to extend time limits. That discretion is gone. Mm-hmm.<affirmative>, it is gone. Um, also back in the day, and you might still have yours, I know I do. I've got, um, whole punch together, a whole pile of the little insurance
Speaker 2:Policy policy conditions.
Speaker 1:Yeah. And I'm pretty confident, um, that when you got your insurance certificate, you also got your little policy. You
Speaker 2:Did, they used to post it to people.
Speaker 1:Yeah. And it had all
Speaker 2:People back when people posted things.
Speaker 1:<laugh>. Yeah. Who puts anything in the post anymore? Um, now you don't get that because the insurance policy conditions are embedded in legislation.
Speaker 2:Mm-hmm.<affirmative>.
Speaker 1:Yep. Um, and it can be, it's confusing to read. Well,
Speaker 2:It, it, it is an insurance policy. Yes. I don't know if you've ever tried to read your home and contents or car insurance policies. Mm. Yes. Says the lawyer
Speaker 1:Suggest people get
Speaker 2:Contracted one. Yes.<laugh>. But my point is they use particular language, very technical specific terms, language concepts that can be very difficult to read and understand.
Speaker 1:And there's also, um, parallel timelines and you know, again, we could spend hours talking about this, but on a high level, there are some specific timeframes to make a complaint in relation to defective building work. If you think your builder has undertaken work that is non-compliant, is defective, isn't fit for purpose, that there are timeframes for that. There are also quite specific timeframes for terminating contracts and making a claim for non-completion. Those timeframes are different. Yes. Quite different. Yes. Um, and so before you enter your contract, and this is, you know, hashtag come to us, we give you some advice about what these timeframes are because you can inadvertently miss them. Yes. And then you're left out, you're stuck on your own. Yep. You know, it's up to
Speaker 2:You to fix it and finish it. Yeah. AB at your cost.
Speaker 1:That's right. And we have had some clients who unfortunately have found themselves in a situation where they have made a claim. They think they've done everything right only to turn around and receive a decision from the qbcc that their insurance claim has been rejected because they didn't make their complaint within the relevant timeframe. And that is, that's a really hard letter to receive.
Speaker 2:Yes.
Speaker 1:Very disheartening.
Speaker 2:Very disheartening.
Speaker 1:There are a lot of decisions ke that the Q BCC makes that are what we say is a reviewable decision. Mm-hmm.<affirmative> in simple terms. That means it's capable of challenge. Yeah.
Speaker 2:Capable of challenge.
Speaker 1:Um, let's talk about what some of those decisions are that might affect our homeowner clients.
Speaker 2:Well, from the homeowner's perspective, um, if the Q BCC becomes involved, they could make decisions, for example, to issue what's called a direction to rectify to, to your builder. And, and that is, as it sounds, it's a, a re a direction, an order that the builder fix work that they've done defective work. Defective work. Um, the QBCC can, can make that decision builder you are required to fix these items or these things, this aspect of the work. Yep. That's a decision which is a reviewable decision. Mm. And it's reviewable meaning capable of challenge Yes. Or appeal, um, by the builder. And if the, and, and the owner as well that, you know, if, if the QVCC decides not to issue a rectification order or direction, rectified to a builder and owner can appeal or challenge that as well.
Speaker 1:Yeah, that's right. If you, um, have a direction issued by the Q BCC in relation to a complaint that you've made and you don't agree with it, you don't think it goes far enough or you think it's missed out a particular item, missing things. Exactly. There are steps that you can take, um, to, as Kel said, challenge that it's reviewable mm-hmm.<affirmative>. Um, and there are mechanisms both internally and externally to the Q bcc. Yeah. But again, there's time frames,
Speaker 2:There's timeframes
Speaker 1:And following on from a couple of things that we've said in our previous episodes. Get advice early.
Speaker 2:Yeah. Get advice, Come up with a plan. Yeah. If you understand the pros and cons. That's
Speaker 1:Right. If you get a decision that you either don't fully understand or just simply think, that doesn't sound right to me cuz there's water dripping into this part of my house, but I, I can't see where this is included in this direction. Um, talk to someone. You only have a period of 28 days to challenge to review that decision. Don't call us on day 27.
Speaker 2:That happens a
Speaker 1:Lot.<laugh>. I know it happens a lot, but please don't like call us on day three or four
Speaker 2:Mm-hmm.
Speaker 1:<affirmative> so we have time to talk to you about the pros and cons. What is it that you're actually trying to achieve? Can you achieve that through this particular process? Okay. Let's put that review, that challenge together. It's very hard to do it on day 27.
Speaker 2:Yeah. It's, we'll
Speaker 1:Help you, but it makes our job easier.
Speaker 2:Well, it, what it does is it, it impacts our ability, the quality of the legal service we can give.
Speaker 1:Mm.
Speaker 2:To be honest, like if we've That's right. If we don't have time to come up with a plan to put informational documents together that we need to, you know, that really impacts on the quality of advice that we can give or the service that we can provide.
Speaker 1:That's right. And the review isn't just a simple I disagree change, can you please change your mind? Uh, it's actually more complicated. There are elements that need to be, um, addressed,
Speaker 2:Explained,
Speaker 1:Articulated. We might even use some cases if there's a similar case that we find that might convince the Q BCC that it should change its mind. It's not just our, we don't like this, you know, please reconsider. There's quite a bit
Speaker 2:To it. You need to explain your reasons.
Speaker 1:Exactly. So Yeah. Get that advice early.
Speaker 2:Yeah. And the other decisions I think from the homeowner's perspective that the Q BCC would make that would impact a a homeowner is in the insurance space, which we talked about, big,
Speaker 1:Big decisions. Big impacts. Big,
Speaker 2:Big in big impact for homeowners Sure. Under their, um, home warranty insurance scheme that the Q BCC manages. Yes.
Speaker 1:Because it's not a coverall
Speaker 2:No,
Speaker 1:It's not a magical money pit that you can just keep dipping your hand into.
Speaker 2:Yeah. Absolutely not. Yeah. It's really important that if you receive a decision from the qbcc rejecting your insurance claim, either partially or a flat out rejection that you, that you do get some advice about options, um, for either appealing or challenging that decision and or how are you going to get the project finished Yes. So that you can move in. Yes. Um, you know, again, lawyers, we, this is what we do. Lawyers can give advice and come up with a plan for that.
Speaker 1:Cause sometimes even if your claim through Q BCC insurance is successful, sometimes it's still not enough. It's not enough.
Speaker 2:You've
Speaker 1:Gotta find some extra funds. Mm-hmm.<affirmative>. Um, and even that in itself is a discussion and a plan. And, uh, you need some advice around that. Especially if you are in a situation where unfortunately something has happened in your build project or your renovation project. You've had to make the difficult decision and take the step of terminating your contract. Ending
Speaker 2:The contract.
Speaker 1:And there's lots of various reasons why that might happen. Mm-hmm.<affirmative>, um, you are then in a situation where the Q BCC might not be able to help you finish that project mm-hmm.<affirmative> for various different reasons. Yeah. Um, so thinking about what other options you might have and, and that's something that we'll discuss in episode four. Um, but that's really important as well, so that you can make an assessment of, of what to do. Yeah.
Speaker 2:Yeah. It's really important.
Speaker 1:Mm. Yeah. Um, a couple of other things that the Q BCC does that don't necessarily affect homeowners directly, but I remember when I first started working there, um, and when we first started to, to get to know each other, um, I didn't realize that there's this huge important part of building, which is the certification process. Yes. I was, I was like, what is this thing<laugh>? What has it got to do with anything? Um, it's all well and good for you to have your house built. Like, yay, fantastic. Wonderful. But it's kind of important to get that certified Yes. To get it lawfully approved by council mm-hmm.<affirmative> to say yes. You know, this structure that you've attached to your house is, is approved and lawful or your house complies with all of the relevant standards. Um, the Q BCC also deals with complaints that are made against certification professionals in relation to whether or not they've done their job properly. Yeah. And that's a, that's something that I don't think a lot of people know about. It is a function, it's a functionality that homeowners probably don't use a lot. Normally the builder will
Speaker 2:Deal with the building certifier and the certification process, but not
Speaker 1:Always. No, not always. And sometimes just because you have a form 21, which is the form certifying that your house is complete and being constructed appropriately doesn't necessarily mean that there aren't underlying issues. Um, so I think it's something to just be aware of. Um, it is also important to make sure that your builder is building your house appropriately, getting the appropriate checks at the appropriate stages. Um, that your frame in your two story house is structurally sound. Mm-hmm.<affirmative> and that's not gonna blow over when we get a big hail storm. Um, those sorts of things are really important and I think often not forgotten, but, um, they're not in the forefront of people's minds. Yeah. I think, yeah, there's a stack of decisions. I think a lot of the reviewable decisions though, are more to do with licensing. And we've, we've covered those in the builders series. Yeah.
Speaker 2:There's a lot of licensing decisions that are made.
Speaker 1:Um, it's really just for homeowners whether or not the QBCC is going to issue a direction to rectify or not mm-hmm.<affirmative> in relation to defective building work and whether or not you're gonna get an insurance claim. That's the, the two really.
Speaker 2:That's, that's, they're the main ones from a homeowner's perspective, they're the main ones.
Speaker 1:Yeah. I, I've had a few, um, questions recently. I, I don't, I assume you would've come across this in your career so far.
Speaker 2:Look, I'm surprised often<laugh> No.
Speaker 1:One thing I, I would like to dispel, sometimes homeowners will say, understandably, I don't want this builder to do this to anyone else. I want this person to lose their license. They did a job building my house. I want everyone to know that and I want them to lose their license. Is that you sort of heard that it's complaint,
Speaker 2:It's definitely a sentiment that gets expressed. Yeah.
Speaker 1:A lot. Um, if a builder gets issued with a direction to rectify, for example, it's on their license. Yeah.
Speaker 2:That's why we recommend online license searches. Yes. Before you sign your contract, before you commit yourself to your builder, do your due diligence. Yep. Do your research. Yep. Their license history will show if they've had disciplinary proceedings, prosecutions, infringement notices, fines, directions,
Speaker 1:Insurance claims,
Speaker 2:Claims conditions imposed on their license. Yep. All of that information is available on the CC'S license search register. Yep. Licensee register.
Speaker 1:Um, and there is a capacity for a homeowner to make a complaint about fences. And I use that term very generally mm-hmm.<affirmative>, but things like, as we talked about in our previous episode, it's a legal requirement to put your variation in writing mm-hmm.<affirmative> and just like if you are driving and you speed, you're gonna get a ticket if you as a builder, um, or, or if you as a homeowner realize that your builder has put a variation in writing that is actually an offense that the builder could receive a fine for. So there are mechanisms for anyone really, but owners often to make complaints about builders conduct Yeah. During a build.
Speaker 2:Yep.
Speaker 1:But we temper that with, with the realistic, I guess statement that you shouldn't expect that that is going to result in a builder losing their license.
Speaker 2:No, no.
Speaker 1:As much as you might think no one that's deserved, that's deserved. That's right. No one else should have to suffer what I've suffered. Um, it, the QBCC doesn't really work like that.
Speaker 2:No. It, no. It performs its regulatory function within the scope and the parameters in which it assesses those kinds of complaints and disciplines, builders and trades people. Yeah. Um, I understand the anger in some cases. Oh, of course. And you know, let's be honest, we can also probably fill an entire podcast episode on some appalling conduct, um, that we've seen over our time. Yes. By builders. Yes. Pauling sometimes
Speaker 1:That gets properly reprimanded and,
Speaker 2:And a proper, you know, big stick approach from the regulator Yep. Is warranted, required, justified reasonable. Yes. There's a number of things that the QBCC will look at when it's deciding how to discipline a builder. Yes. Um, and your situation may form part of that decision made making process. Um, and they'll prescribe whatever weight, um, they feel is warranted to the builder's conduct when they're dealing with your job.
Speaker 1:But it doesn't necessarily mean that that builder's gonna lose their license. Yeah. Yeah. Yep.
Speaker 2:Not necessarily. Um, I think, um, one thought that's just come to mind too, which I think might be helpful for homeowners to understand too about the QVCC in its role is that the QBCC does publish a lot of fantastic resources for homeowners around the building process. Yes. Their website actually has a lot of very useful information Mm. That people can access for free, um, around the building process contracts, um, you know, it's very general information, but the QBCC does perform an education function as well. Mm. And, um, it's really nifty to, you know, jump on their website if you are, you know, if you are wanting to build or renovate and just get some information about, you know, the process and what to expect. And they, they publish a lot of information. They do what helpful information. Yeah.
Speaker 1:They do do road shows and stuff as well. Um, which I think is targeted more towards builders, but, but you're absolutely right, Kelly. There is a education function. Um, and I personally think they possibly could do a little bit more, a little bit more around that. You know, some of it is a little bit, um, responsive instead of proactive, but that's also a sign of just how rapidly things change in the industry. And two years ago, if we were sitting here having this conversation, we could never have contemplated the impact of covid 19. No. On the industry. N never, ever. Um, so I think there's gonna be also moving forward a lot of learnings about what has happened during the pandemic, how that's impacted the industry, how things might change in the future just based on the last two to two and a half years, and how that has really massively impacted the lay of the land. Yeah.
Speaker 2:Yeah.
Speaker 1:Um, and you know, the Q bcc I think is, um, it, it is under a lot of pressure with builders going into liquidation, lots of people making insurance claims. It's, there is processes that need to be followed and homeowners also need to be aware that sometimes these things take time. Yeah. And you've just gotta step through that process. Just
Speaker 2:Gotta follow the process,
Speaker 1:But make sure you do those things early and get advice about the timeframe so that you don't inadvertently miss out on opportunities that are
Speaker 2:There. Yeah. Please, please don't bury ahead in the sand.
Speaker 1:No, definitely don't, don't call us on day 27. Please
Speaker 2:Don't<laugh> or day 28<laugh>, which happens. Yeah.
Speaker 1:That will really
Speaker 2:Limit. I mean it's fine, but it
Speaker 1:Limits our ability to help,
Speaker 2:It limits the quality of the service we can give. Says the person who at uni at law school would leave her assignments till the last minute, each and every time. Don't do that. Same.
Speaker 1:Yeah. Don't do that. Don't
Speaker 2:Do that. Yeah.
Speaker 1:Completely different situations. Exactly.<laugh>,
Speaker 2:I understand that. I understand it. Please don't do it. Yeah. Do as I say, not as I do.
Speaker 1:Exactly. That's it. Yeah. That's what the podcast is about. Is
Speaker 2:It? Yeah. Is that the podcast title?<laugh> Episode Title<laugh>. Okay. Great. Maybe
Speaker 1:That's today's slogan.<laugh>.
Speaker 2:Yeah. Um,
Speaker 1:So I think, you know, without bordering on giving legal advice, because we can't do that in this podcast. It is very general. I think that's a nice, fairly detailed overall summary of how the QBCC can help homeowners.
Speaker 2:Yeah. Yeah.
Speaker 1:Is there anything else?
Speaker 2:I don't think so. I think we've covered the main points. Yeah. Think so. I think people just aren't aware of the qbcc. Yes. Like, and, and why would you be? Yeah. And we hope you never have to involve a regulator. Right. But it happens. It does. It happens from time to time. Be aware that the QBCC exists. Be aware that it's there to resolve building disputes. It's there to assess insurance claims. It has a disciplinary function, has an education function. Be aware of that. And if you need some assistance navigating the qbcc, we can help with
Speaker 1:That. We can, but don't expect it to magically resolve all of your problems. Um, and don't necessarily believe all of the things that you hear Yeah. In the media about what it does and exactly how it's let people down because your situation might be different. Exactly. And that's why we suggest getting advice early.
Speaker 2:Get advice, have a plan. Yeah. Yeah. Excellent. Awesome. All right.
Speaker 1:That's a wrap on episode three.
Speaker 2:Episode three. Done. I will see you in episode four. Awesome. Okay.
Speaker 1:Bye. Bye.