Tag Archives: avoiding fines

The Massive Risks in Hiring an Unregistered Contractor

Risks in hiring an unregistered contractor

Risks in hiring an unregistered contractor

Did you know there are massive risks involved in hiring an unregistered contractor to complete work on your behalf?

While it may seem tempting to go down this route to save funds, there are implications that could land you in some serious strife. For example:

Fines: The Queensland Building and Constructions Commission recently reported that four companies were fined a total of $40,000 for utilising an un-registered builder.

Insurance: If your contractor is unregistered, they will not have a current insurance policy for public liability and any other required insurance applicable to their industry. This means you are not covered for possible loss and damages over your contract term.

There are however, steps you can take to ensure you are hiring a legitimate contractor. Follow these 6 steps to check if your contractor is registered and in-turn, cover yourself against possible fines:

  1. Make sure the contractor is a registered business. You can do this easily using www.abr.business.com.au. Search for the contractors business name and ensure they have a registered and current ABN number.
  2. Ensure your contractor has all relevant licences to complete the task at hand. If you are not sure which are required, speak to your local council. In some cases, your contractor may not have a licence. In which instance, an industry professional or peak body can cover the contractor. Failure to produce evidence of this is an automatic red flag.
  3. Public Liability Insurance is an absolute necessity. Ask your builder if you can obtain a copy of their certificate of insurance prior to signing ANY contracts.
  4. If required, your contractor should be able to produce a Safe Work Method Statement (SWMS) to demonstrate they are committed to working with safety in mind and minimising risk at all junctions. (Note: Only required for work where risk is involved).
  5. It is required to supply MSDS (Material Safety Data Sheet) for every chemical used in site. This way, if a person is to come in contact with a chemical, they are able to quickly identify what it is and how to remedy any negative consequences. A Hazardous Chemical Register is also preferred so that the client can at all times be aware of what chemicals are stored or used on their property.
  6. If you are time poor, you can engage a professional service provider to complete these checks on your behalf. Trades Monitor (www.tradesmonitor.com.au/) can produce records and information pertaining to: Public Liability Insurance, Professional Indemnity Insurance, Licences, Work Cover Insurance and Safety Compliance.

If you are looking for a registered, licensed and all round professional company to assist you with:

  • Plumbing
  • Air-conditioning
  • Fire services
  • Electrical services
  • Handyman services
  • General maintenance
  • Cleaning

OMS provides a comprehensive profile of services spanning across various qualified trades, enabling our clients access to a complete Facilities Maintenance package.

Our service providers are thoroughly vetted and vigorously tested to ensure you receive nothing but the highest quality service each and every time you engage OMS.

Damien Owens
Director