Builders risk licence cancellation

BUILDERS who clock up unpaid debt will now risk having their licence cancelled.

Public Works and Housing Minister Dr Bruce Flegg said holding back payments for no reason had been an industry issue for some years.

"If a person goes to court and gets a court order or judgment for the licensee to pay a debt, there is no legal excuse for the licensee to refuse to pay," he said.

Building contractors who owe money to subcontractors can pay a judgment debt through the court.

As a result of the reforms, a licensee has a statutory obligation to pay the debt and if it is not paid, risk having their licence suspended or cancelled.

"While there are instances where monies are withheld for genuine reasons such as defective work or contractual breaches, it is also evident in some instances that contractors fail to pay without reasonable and justifiable cause," Dr Flegg said.

The changes have been made through an amendment to the Financial Requirements for Licensing (FRL) under the Queensland Building Services Authority Act 1991.