All Topics / Value Adding / Legal requirements when managing tradies

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  • Profile photo of j.wj.w
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    @j-w
    Join Date: 2009
    Post Count: 17

    Hi,

    I need some advice on what the requirements are when managing tradies when conducting DIY renos. I am located in townsville and the renos will be conducted on a block of units. As I understand a OB licence will not be isses for multiple dwellings.

    Is it simply a matter of ensuring I have a contract with the tradie and that they are licenced and insured? I have got a feeling that there is some kind of $11,000 cap to work that can be done without a OB licence?

    If I am managing licenced tradies do I need any sort of licence myslef?

    I know some of the work will be greater thatn $11K.

    I also want to know where I stand when i go to sell the units, likely to be within 12 moinths?

    Thanks.

    Profile photo of j.wj.w
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    @j-w
    Join Date: 2009
    Post Count: 17

    I forgot to mention that there will be no structural work. All of the work will be cosmetic, Tiler, paitner, electrician, cabinet maker.

    Profile photo of Emily123Emily123
    Member
    @emily123
    Join Date: 2009
    Post Count: 3

    Check out Queensland Building Services Authority website
    some contractors (based on $) will require a contract.
    http://www.bsa.qld.gov.au
    they will have some tips as well as a licence search
    so you can view a licenced tradies records
    hope that helps

    Profile photo of NBSNBS
    Member
    @nbs
    Join Date: 2010
    Post Count: 60

    I agree with checking out the BSA site there are a range of things to consider not only licenses and insurance.

    Brian

    Profile photo of j.wj.w
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    @j-w
    Join Date: 2009
    Post Count: 17

    Not really. What I am asking is can I coordinate tradies on site without an OB license, provided all the relevant tradies are have the appropriate licence and insurance?

    Profile photo of j.wj.w
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    @j-w
    Join Date: 2009
    Post Count: 17

    Hi Brian,

    I have checked it out. I do not believe it it clear what the requirements are for multiple dwellings.

    Profile photo of NBSNBS
    Member
    @nbs
    Join Date: 2010
    Post Count: 60

    Hi J.W

    You are correct about getting license for the work you want to do. 
     
    What types of work are not covered by an owner builder permit?
    The permit must be for a building used for residential purposes only. A permit will not be issued for construction or renovation of multiple dwellings, commercial premises (e.g. duplexes, boarding houses, shops, industrial buildings, shops, farm buildings etc). Where the work is to be carried out on a farm building please contact BSA as in certain circumstances this work may be exempt from the requirement to be carried out by a licensed person.

    Try this number Monday and see what is your options.
    Townsville – Counter Service available 8.30am to 4.30pm weekdays 
    287 Ross River Road
    Aitkenvale QLD 4814
    Telephone 1300 272 272

    I dare say you would be the principal contractor and thus responsible for all workplace health and safety issues, workers comp insurance, ensure the trades are licensed and have correct insurance, you may need to consider GST requirements, check ABN numbers. It maybe worth getting a copy of their insurance certificate for your records.

    hope this helps

    Brian

    Profile photo of j.wj.w
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    @j-w
    Join Date: 2009
    Post Count: 17

    Hi Brian,

    I dont mean to be rude but yeah, I have read the website too. What I was hoping for was someone who actually has experience in doing this kind of thing, ie renovating a block of units.

    Profile photo of Scott No MatesScott No Mates
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    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856

    Technically JW you will be required to engage a builder even if the work is not structural if it exceeds the value of work that may be undertaken without a DA/CC.

    An OB Licence is not applicable as this is classed as 'building work' which will require a builders licence to undertake – an OBL only applies to owner-occupied premises not multi-dwellings.

    The OB cap only applies once to the total value of the work ie if you are doing $100k of work ie 4 x kitchen replacements, carpet, bathrooms, painting, electrics etc) then you have instantly exceeded the limit regardless of the value of each of the individual contracts.

    I'd suggest that you speak with a builder/project manager who may be prepared to take up the risk of supervising you & subbies, picking up the home warranty insurance, OHS and meeting all of the legal requirements etc

    Profile photo of j.wj.w
    Participant
    @j-w
    Join Date: 2009
    Post Count: 17

    Thanks Scott,

    So let me get this right, even if I was only to paint the multi dwelling and price of work exceeds the value that can be undertaken without a DA/CC ($11,000 in QLD I think) I would need a builder/project manager to take on the risk, home warranty insurance, legal requirements.

    Is that right?

    If so, any way legally around it that you know of?

    Profile photo of Scott No MatesScott No Mates
    Participant
    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856

    Do one trade at a time, if it is feasible.

    Think about it this way, the time and cost (interest, lost rent etc) of is going to be much less if you engage a small local builder to co-ordinate all the trades that you have tendered and want to useand pay the builder  a small 'handling' margin as opposed to engaging them as the builder who undertakes the scoping of the works tendering etc.

    Profile photo of keikokeiko
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    @keiko
    Join Date: 2008
    Post Count: 513

    So say you want to replace the jib board in the house and there is $20,000 of work and you get a contractor in to do this, then wil j.w need a builder/project manager to look after this as well?

    Profile photo of Scott No MatesScott No Mates
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    @scott-no-mates
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    Post Count: 3,856

    If it is on his house you can rely on the contractor's trade licence. If it is on a block of units, then the same would apply (for a single trade).

    Profile photo of j.wj.w
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    @j-w
    Join Date: 2009
    Post Count: 17

    Scott, is this a common thing for a builder to do, charge a 'handling fee'. What you are effectively asking them to do is charge them a fee in exchange for them, providing their license number for the build and taking on the warranty and OHS risk. I imagine you would need a pretty firm contract of what is included in something like that.

    I work as a project manager (an could potentially take a few months off work) so I am not keen to pay a builder a 20% (?) margin to manage tradesmen on site.

    Profile photo of keikokeiko
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    @keiko
    Join Date: 2008
    Post Count: 513

    how about renovating a single commercial building

    Profile photo of Scott No MatesScott No Mates
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    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856

    JW, you would only be paying a v small% as they are not providing much other than the back of house (prelims  would account for 13% of the entire project and that would include a foreman, sheds, temps etc). As you would know as a qld pm, you need to be licenced, use your contacts or swing a favour.

    Keiko, some states do require that all classes of builders must be licensed (NSW thankfully does not), hence only residential builders need to be licensed but someone building skyscrapers doesn't even need to know how to drive a nail.

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