The Prequalification (PQC) System is Queensland's whole-of-government register of prequalified building consultants and contractors. Show
Government departments use the register to identify prequalified suppliers suitable to deliver projects based on the project size, type and location as well as the supplier's licence and capabilities. Who needs to prequalifyContractorsAll building contractors who are directly contracted on government building projects must apply for prequalification if a project is valued at more than $1 million. Key trade or specialist contractors (such as electrical, air conditioning and refrigeration, demolition and asbestos removal, and fire safety services) can be registered in the PQC System and must apply for prequalification if work exceeds $1 million. ConsultantsAll building consultants who are directly commissioned on government building projects must apply for prequalification if the commission fee either:
Head contractors and subcontractors for Best Practice Principles projectsHead contractors, including managing contractors directly engaged by the state and subcontractors directly engaged by a head contractor to deliver a trade package, who want to work on Best Practice Principle (BPP) projects need to be prequalified. A BPP building project is valued over $100 million or is a declared BPP project of a lesser value. Under the Queensland Procurement Policy 2023 (QPP 2023), BPPs include:
The Best Practice Industry Conditions (BPICs) (PDF, 2.8MB) outline the Queensland Government's terms and conditions that will apply on BPP building projects. How to applyYou need to submit an application online. Before you begin your application, read the eligibility and application requirements for:
Your application needs to show that you are an ethical supplier with appropriate experience and qualifications. All prequalified suppliers have to demonstrate how they contribute to government priorities supporting:
After you prequalifyA prequalified building contractor or consultant is eligible to tender for suitable government building projects through QTenders. Before a prequalified building contractor is awarded a contract, they will undergo a financial assessment. When a prequalified supplier works on a Queensland Government building project they must 'demonstrate that they deliver' (Performance reporting) on agreed time, cost, quality and scope outcomes as well as contractual, legislative and regulatory requirements including:
If a supplier does not meet the expected standards the review and sanctions process may be used to downgrade, suspend or cancel a suppliers prequalification status. Registering for minor works or service maintenance contractsIf you don't meet the PQC requirements, or if you're a contractor, consultant or supplier interested in minor works or service maintenance contracts with the Queensland Government through QBuild, you can register your details with QBuild. If you are running a business primarily in the building and construction industry, you must lodge a Taxable payments annual report (TPAR) if you:
Payments made to are not reported in your TPAR. Each year, you must:
When a business operates primarily in building and construction servicesYou are considered to be a business that primarily operates in building and construction services if any apply:
See the steps on how to To determine if an entity is in the building and construction industry, see Subregulation 64(6): Taxation Administration Amendment Regulation 2012 (No.1) Example: business primarily in the building and construction industry FS Builders earns all of its income from building commercial properties for its clients. FS Builders is primarily in the building and construction industry. This is because 50% or more of its income is from providing building and construction services. FS Builders must report the total payments it makes to contractors for providing building and construction services in a TPAR. End of example Example: business primarily in building and construction services ABC is a property developer. It has purchased a block of land in the Melbourne. It intends to build apartments on the block of land. ABC has created a separate entity called Upmarket Apartments. This entity manages the project and construction of the apartments. Upmarket Apartments must report payments to contractors for providing building and construction services. It must report because 50% or more of its business activity relates to building and construction services in a TPAR. End of example Example: not all income is from building and construction services Sascha’s Cabinet Makers is a business that makes and installs custom-made kitchen cabinets. Cabinet making is a building and construction service activity. Sascha’s Cabinet Makers also produces and sells ornamental wooden carvings. Sascha's Cabinet Makers earned the following income from its business activities:
Sascha's Cabinet Makers must report the payments made to contractors in the 2020 income year in a TPAR. This is because it earned 50% or more of its income from building and construction services in that year. Although it will not earn 50% or more of its income from building and construction services in the 2021 income year, it still must report payments to contractors in the 2021 TPAR. This is because the financial year immediately before was above 50%. End of example Example: mining infrastructure Black Coal establishes a new mining facility that requires the construction of a range of infrastructure. Black Coal contracts Earl’s Earthworks to carry out the work. Earl’s Earthworks subcontracts the work. Black Coal does not need to report its payments to Earl’s Earthworks. This is because all of its income is from coal mining. Earl’s Earthworks must report payments it makes to subcontractors in a TPAR. This is because it carries on a business primarily in building and construction services. End of example Example: retail business providing minor building and construction services Harry’s Hardware is a business that sells building equipment to builders and homeowners. For an additional fee, Harry’s Hardware can arrange the installation of certain products, such as a skylight. Harry's Hardware does not report payments to contractors who perform the installation. This is because the business is primarily in retail services and not in building and construction services. End of example Example: separate entity for building and construction services Harry’s Hardware sets up a separate business entity called Harry’s Installation Services. This entity installs the products sold by Harry's Hardware. Harry’s Hardware does not report payments made to contractors in a TPAR. This is because it is not carrying on a business primarily in building and construction services. However, Harry’s Installation Services must report payments it makes to contractors for services in a TPAR. This is because all the income for Harry’s Installation Services is from providing building and construction services (installation of products). End of example Example: reporting payments to a subcontractor Robin's Installation Services (principal contractor) contracts Simone (subcontractor) to install products. Simone cannot complete all the work, so she subcontracts some of the work to Bill (subcontractor). Robin's Installation Services must report the payments it makes to Simone in a TPAR. If Simone is carrying on a business that is primarily building and construction services, she must report payments she makes to Bill in a TPAR. End of example Only report payments you make to contractors for building and construction services. Contractors can be sole traders, companies, partnerships or trusts. The definition of building and construction services is broad. It can include any of the activities listed below if they are performed on, or in relation to, any part of a building, structure, works, surface or sub-surface:
Examples of building and construction servicesThe following occupations and work activities satisfy the definition of building and construction services:
Examples of buildings, structures, works, surfaces or sub-surfacesThe following is a list of what we consider to be buildings, structures, works, surfaces or sub-surfaces:
Examples: inspections and certifications Joe's Builders was contracted by a property developer to build a 15-storey building. Joe's Builders engaged Oz Management, to certify each stage of the building work. Oz Management followed the project through to the end. It carried out the building inspections and issued the occupancy permit. Joe's Builders must report the total payments it made to Oz Management for the inspections and certification in a TPAR. End of example Example: testing and tagging LA Plumbing is a business primarily in building and construction services. It engages City Spark to test and tag the electrical equipment and tools used in its business. City Spark's business is to test electrical appliances to ensure they are safe. The payments LA Plumbing makes to City Spark for testing and tagging are not reported in a TPAR. This is because the activity is not a building and construction service. End of example Example: equipment hire with or without an operator Total Machinery is an equipment hire store. It offers plant and machinery for hire to businesses providing building and construction services. Equipment for hire includes bobcats, scaffolding and tippers (dry hire). Total Machinery can also provide the equipment with an operator (wet hire) for an additional fee. Wet hire is a building and construction service. A builder who hires a bobcat with an operator must report the payment it makes to Total Machinery in a TPAR. This is because the builder is paying for a building and construction service, not just equipment hire. End of example When a business providing building and construction services needs to lodge a Taxable payments annual report (TPAR) for payments made to contractors. When should you do a constructability review?The review is best done at both the 90 and 100 percent design stages. 11 At those stages, the work scope has been finalized and all drawing details and notes (at least, in the designer's opinion) have been incorporated and specifications have been assembled. Who are the customers of a construction company?First, let's define what we mean by “construction client.” In the construction industry, a client is rarely an individual. Most of the time, it will be an organization or a group rather than a single person. Clients in the construction business can be divided into two main parts: commercial and domestic clients. What is the design review of building construction?Design review is the local government practice of examining public and private projects for their aesthetic, architectural, or urban design quality and compatibility with nearby development. How whs legislation affects building and construction projects in general?Under the WHS Regulations, each 'construction project' must have a 'principal contractor'. There can only be one principal contractor for a construction project at any one time. A principal contractor is a person conducting a business or undertaking (PCBU). |
