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What is the demerit point system and when does it apply?
The demerit point system is designed to encourage change. You will incur demerit points if you do not comply with:
Your obligations to pay insurance premiums under the Queensland Home Warranty Scheme
BSA directions to rectify defective or incomplete building work
Your obligations to use properly detailed written contracts, and in the case of domestic contracts, that comply with legislative controls relating to payment
Paying judgment debts (see below)
Further information can be found in the Contractual Obligations, Demerit Points and Bans booklet which also provides information on Tier 1 Defective Work and financial failure.
Excluded individual
To ensure public confidence in BSA’s licensing system, and to promote security of payment in the building and construction industry, the Queensland Building Services Authority Act 1991 contains anti-phoenix provisions. These provisions prevent people who take advantage of the laws of bankruptcy, or people associated with a failed company, from holding a BSA contractor or nominee supervisor’s licence, or being in a position to control or influence a BSA licensed company for a period of five years. A person involved in two insolvency events faces life exclusion.
An excluded person may apply to BSA to be categorised as a “permitted individual”. If a person is categorised as a permitted individual they will no longer be an excluded individual and may hold a BSA licence or be in control of a BSA licensed company.
Can an excluded person apply to be categorised as a permitted individual?
Yes - If you become permitted you will be able to hold a BSA licence and be in control of a licensed company.
What is the process for becoming a permitted individual?
You will have 28 days to reply to BSA's notice informing you of an exclusion.
If you fail to make application your licence will be cancelled.
The application must be made on the Application to be Categorised as a Permitted Individual form.
You can only make application to become permitted once for each relevant event.
Judgment Debts
BSA's Judgment Debts fact sheet covers what judgment debts are, what you should do if someone obtains a judgment against you and how BSA can assist you with your judgment debt against a licensed contractor.
Notifying BSA where a Judgment has been Awarded in your Favour
If you take legal action against a licensee and a judgment is awarded in your favour by a court you should inform BSA. You will need to provide BSA with a copy of the judgment certificate and details of:
What the debt relates to;
Any payments made; and
The method and date of service of the judgment certificate on the licensee.
Legislation allows BSA to impose demerit points against a licensee who fails to pay the debt. Each unsatisfied judgment debt attracts 10 demerit points. A licensee who accumulates 30 demerit points within a three year period can be disqualified from holding a BSA licence for a three year period. Demerit points imposed are removed once the debt has been paid - this is to encourage payment. Often the threat of losing their licence and the debt being put on the public register is enough to prompt payment.
What to do if you are NOT being Paid
If you are owed money by a BSA licensed contractor you should complete and return the Monies Owed complaint form. Anonymous complaints do not give BSA any grounds to commence an investigation and no action can be taken. If you are unable to provide all the required information there will be insufficient evidence to substantiate your complaint and no investigation will commence.
You can return your complaint by post, fax, in person at your nearest BSA office or via email. Note - where emailing your complaint to Compliance.Complaints@bsa.qld.gov.au you will need to complete and print the form and scan all documents (form and evidence) and attach them to the email (BSA can only accept documents in a PDF format and your email should not be larger than 15MB).
Details regarding financial investigations are kept confidential. BSA will not disclose details of any person/s claiming they are owed money without their consent (unless required by law or order of a Court or Tribunal of competent jurisdiction). BSA will also not disclose any information regarding the investigation - including whether or not an investigation was commenced.
You can also use the Building and Construction Industry Payments Act 2004 to assist with the recovery of monies owed for the carrying out of building and construction work or the supply of related goods and services in Queensland. To find out more information about the Building and Construction Industry Payments Act process please click here.
Fact Sheets
Excluded Individual
Excluded Company
Insolvency Events
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