VBA registration changes explained | Master Builders Insurance Brokers
On 1 July 2018 VBA introduced new regulation changes. Companies can now apply to be registered as a building practitioner. Here are some frequently asked questions answered:
I just received the domestic company building registration number from the VBA. What do I do now?
Congratulations! Although your company registration may be registered with the VBA, it may not be linked to your eligibility facility with the insurer. Please contact us to update your eligibility details to reflect the company registration number.
I have my company building registration. Does this mean I no longer require my individual building registration?
No, you need both registrations. Essentially it is a dual registration structure and if either of them are not in place, the company will not be able to enter into major domestic building contracts.
I have received my domestic company building registration from the VBA. Does this mean I have to go through another eligibility application process for the company?
The domestic building registration would have only been approved because you already have an existing eligibility facility in place in the company name. There is no need to undertake another eligibility assessment unless you are requested to by the insurer or you are seeking to increase your eligibility cover.
Does this mean I have to pay the registration renewal fee twice, one for my individual registration and one for company building registration?
Yes. Unfortunately, you are required to maintain both registrations which are required by the legislation to fully function and operate as a domestic building company.
How does this company building registration affect me in terms of my trading process? Is it the company entering into the domestic building contract? Aren’t I the builder though?
If you trade as a company then it is the company that enters into the building contract and named as the builder on permits and other relevant documents. As the named builder, the company has the obligation to purchase domestic building insurance policies for residential works over $16,000.
As the company does not have a physical presence, the nominee director of the company would be overseeing and undertaking the building works on behalf of the company.
Why do I have to go through this painful process? What is in it for me?
There has been a reform to the existing legislation that came into effect as of 1 July 2018 and it has now become mandatory for new and existing builders who wish to trade as a company to obtain company building registration.
What is involved in the company building registration application?
It involves an application form, director’s declaration (completed individually by all directors), national police check and relevant proof for insurance requirement (e.g. letter of eligibility in the company name).
How do I apply for the company building registration and how long does this process take?
Please refer to the VBA website and note that the general processing timeframe is expected to be 6 to 8 weeks from the time of submission of complete information.
My business is doing well and I have decided to start a second company. What do I have to do?
If the new company is intending to undertake domestic building works then it must have relevant insurance (eligibility facility in the company name), company building registration and a nominee director who holds a current and relevant individual building registration.
I am trading as a sole trader/partnership and I am planning to change the structure over to a company. Does this mean I have to apply for my company building registration with the VBA?
Yes. If you intend to change your trading structure to a company and undertake residential building works then you would have to obtain eligibility and building registration in the name of the company.