Renovating For Profit in Brisbane – QBSA restrictions

Hi Dean

Thanks for your post. I can see where the BSA website says that you have to use a BSA licenced contractor for work over $3,300.

But if each project in a renovation is less than $11,000 and you are using a BSA licenced contractor then surely you wont need to be an OB? Even if a projects in a renovation are greater than $11,000 and you are using a BSA licenced contractor wouldnt you still be within the BSA rules?

It all seems a bit grey to me and it seems like builders are just trying to stop you cutting out the middleman – which after all is why you want to do the reno yourself and make money! Am I missing something here?

Regards 

Great, there’s another cost..

Have not heard of anything like this in SA , what would be the cost of having a builder manage a renovation in qld per week?

Does the 11k just mean for labour if you supplied the materials of 5k and the trades cost 10k is still within the law?

Also I’m guessingg the builder wouldn’t be there full time, I had a whole house built and the builder/ site supervisor was never anywhere to be seen?

I really don’t see why u need a builder to manage it, the trades are the ones doing the detrimental work anyway

Hi All, my husband and I are looking at renos as an income stream and are in the investigation process.
I have read the BSA rules and understand the 11K worth of building works requiring you to be an owner/builder so then my question becomes what is defined as building work and what of doing renos would not be building work?

I came across a booklet by BSA called 'Introduction to Building in Queensland". Here is an excerpt:
Under the Queensland Building Services Authority Act 1991 (QBSA Act) and Regulations, ‘building work’ is defined to generally include the construction, alteration or repair of any building or fixed structure and includes services, site works and management, supervisory and inspectorial services associated with such buildings or structures.
The Regulations go on to exempt certain works from the definition of ‘building work’. These exemptions include
• work performed by architects, engineers, surveyors, valuers in their professional practice
• work performed by the commonwealth, state or local government
• work associated with water, sewer or stormwater outside private property boundaries
• busways, roads, tunnels, bridges, railway tracks, airport runways, harbours, wharfs, dams and mines
• electrical and earthmoving work
• signs that do not have a supporting structure
• scaffolding
• curtains, blinds, carpet, floating floors, vinyl, insect (but not security) screens and monumental masonry
• work done by owner builders
• asphalt, bitumen and line marking
• asbestos reports and assessment of energy efficiency, and
• work valued at less than $3,300, unless it is related to building design, plumbing and drainage, gasfitting, completed residential building inspection, site classification and termite management – chemical.

A section on insurance provides some specific examples of construction work, ie:
If you contract with a homeowner for residential construction work you must pay the required BSA home warranty insurance premium as soon as possible after signing the contract.
Premiums can be paid at any BSA office or over the phone by using your BSA contractor pin number.
Residential construction work that requires payment of an insurance premium includes work that exceeds $3,300 in value and involves
• construction of a new house, multiple dwelling, town house or units that are no more than three storeys high (excluding car park), and
• additions, alterations, renovations or repairs to a house, multiple dwelling, town house or unit that comprises
– work which affects the structural performance of the residence/Related Roofed Building (RRB) (e.g. underpinning of a house)
– replacing the roof, wall, internal partition, floor, or foundation in the residence/RRB
– replacing or refitting a kitchen or bathroom in the residence/RRB
– work on an unenclosed elevated platform, deck or verandah attached to a residence
– work which increases the covered floor area of residence/RRB (e.g. raise house and build-in underneath), and
– installation or repair of the primary water supply, sewerage, or drainage to the residence/RRB.
A section re plumbing says:
Plumbing approval
Plumbing approval is separate to DA approval and can only be provided by local government (councils etc).
All sanitary plumbing, sanitary drainage or water supply plumbing must comply with the relevant legislation, building codes and standards.
To perform plumbing and drainage work a person must be licensed by the Plumbing Industry Council and also comply with licensing requirements of the BSA.
Building contractors must comply with local government requirements in relation to plumbing inspections and the issue of final certificates.
Unless otherwise agreed by the local authority, plumbing work must be inspected before it is covered up or concealed (e.g. pipe work in trenches and in wall frames).
Plumbing approval is required for all plumbing work, except replacing fixtures where the location of the fixture is unchanged and other very minor maintenance and repair work.

Therefore I am now thinking that:
– I can paint, change floor and window coverings, install flyscreens, change taps, have an electrician change lights and none of that falls under 'building work' so would not be part of the $11,000
– If I want to eg install a new bathroom if the value is less than $11,000 then I wouldn't have to worry about being an owner builder either as it comes in under the limit.

So maybe it can be done?

Dean and Elise I would love to hear more from you and about your experiences – we are currently overseas and have about 6 months or so until we are back in Oz so trying to educate ourselves the best we can to be prepared to hit the ground running on our return.

Best Regards,

Here is information on Dean and Elise Parker:
http://www.propertysystems.com.au/reno-expert-dean-and-elise.html
Hope that helps you