Licences, contracts and home warranty insurance

Updated 19 Aug 2026/8 min read/By Manttan Construction · QBCC 15030266

Queensland residential building work — key figures

$3,300	Licence threshold. Above this total value — labour plus materials plus GST — the contractor must hold the right QBCC licence. A job cannot be split into smaller invoices to duck under it.
$3,300	Home warranty insurance threshold. Most residential work above this value must be insured under the Queensland Home Warranty Scheme, with the premium paid before work starts.
$3,300 – $19,999.99	Level 1 domestic building contract. A written contract is required, and the deposit is capped by law. Manttan works to a 5% deposit at every contract level.
$20,000 and above	Level 2 domestic building contract. Fuller disclosure requirements, and a maximum deposit of 5% of the contract price.
Any value	Plumbing, drainage, gas fitting, termite chemical management and fire protection always need the appropriately licensed trade.
6 years 6 months	Typical structural defect cover period under the Queensland Home Warranty Scheme, running from the earliest of contract, premium payment or start of work.
$200,000	Standard maximum claim under the scheme, with higher cover available as an option.

01 — Licensing

Who has to be licensed, and how do I check?

Any individual or company contracting to carry out building work over $3,300 in Queensland must hold the appropriate QBCC licence class. Below that figure a handyman can legally do general repairs — but not plumbing, drainage, gas or electrical work, which always require the licensed trade regardless of value.

Checking takes a minute. Ask for the licence card or digital licence, then search the licensee on the QBCC register to confirm the class, that it is current, and whether there is a history of directions to rectify.

02 — The $3,300 line

What does the $3,300 threshold actually include?

Everything: labour, materials and GST, for the whole job rather than per invoice. Splitting one project into several smaller contracts to stay under the threshold is treated as non-compliance, not clever budgeting.

It matters to you as the owner because the same figure switches on your protections — the written contract, and the home warranty insurance. Work done under the threshold, or by someone unlicensed, sits outside that safety net.

03 — Contracts

What must be in a Queensland domestic building contract?

Domestic building contracts are governed by Schedule 1B of the QBCC Act. There are two levels: Level 1 for work from $3,300 to $19,999.99, and Level 2 for work of $20,000 or more, with fuller disclosure obligations.

What to look for before you sign

• A fixed contract price, with any allowances clearly identified as allowances.
• A deposit within the legal cap. We work to 5% on every job, whatever the contract level.
• A defined scope with plans and specifications attached, not just a paragraph.
• Progress payment stages tied to real milestones, with nothing paid ahead of work done.
• Start and completion dates, plus how extensions of time are handled.
• A written variations process — priced and signed before the work happens.
• The defects liability period and how you notify defects.
• Evidence of the home warranty insurance premium being paid.

04 — Insurance

How does home warranty insurance protect me?

The Queensland Home Warranty Scheme is compulsory, not-for-profit insurance administered by the QBCC. Your builder pays the premium — collected as part of the contract price — before work starts, and you should receive a notice of cover.

It covers you if the contractor does not complete the work, or if the work has defects the contractor will not or cannot rectify, plus certain events such as storm damage during construction. Structural defect cover generally runs 6 years and 6 months from the earliest of contract signing, premium payment or start of work; non-structural cover is much shorter.

Standard cover is up to $200,000 per claim, with a higher optional limit. Not everything is insurable: buildings over three storeys, mixed residential and commercial projects and owner-builder work sit outside the scheme.

05 — Comparing

How do I compare quotes fairly?

Two quotes on the same job can differ by tens of thousands and both be honest — because they include different things. Line up the exclusions before the totals.

• Is the home warranty insurance premium in the price, or added later?
• Are certifier, council and engineering fees included or excluded?
• Are tiles, tapware, cabinetry and appliances a real selection or a token allowance?
• Who pays for waste removal, protection of finished areas and final clean?
• Is temporary make-good included — dust screens, temporary kitchen or bathroom access?
• What is the site allowance for the unknowns older homes always hide?

Ask each builder to price the same specification. If one is dramatically cheaper, the difference is usually in the exclusions rather than the workmanship.

06 — If it goes wrong

What are my options if there is a problem?

Start with the contract: notify the defect or dispute in writing within the timeframes it sets. Most issues are resolved at that stage, and a written record matters if they are not.

If that fails, the QBCC has an early dispute resolution service and can issue a direction to rectify defective work. Claims under the Home Warranty Scheme have strict time limits, so do not sit on a problem hoping it settles down.

This is general information, not legal advice. For a significant dispute, get a construction lawyer involved early.

Questions

Licences & contracts FAQ

Still unsure how it applies to your place? Call 0402 847 873 and we will tell you straight.

What is the QBCC licence threshold in Queensland?+

$3,300 including labour, materials and GST. Building work above that value must be carried out by an appropriately QBCC-licensed contractor, and the job cannot be split into smaller invoices to get under the figure.

Who pays for home warranty insurance?+

The builder pays the premium to the QBCC before work starts, and it is collected from you as part of the contract price. You should be given a notice of cover as proof.

How much deposit can a builder ask for?+

The law caps it by contract level, and Manttan works to 5% across the board. Ask any builder to show you the deposit clause in the contract before you pay anything, and never pay a deposit to an unlicensed contractor.

How long is my work covered for defects?+

Under the Queensland Home Warranty Scheme, structural defect cover generally runs 6 years and 6 months from the earliest of contract, premium payment or start of work. Non-structural cover is much shorter, so raise finish defects promptly.

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