Walk away from a builder who will not give you a QBCC licence number, who asks for a deposit above the legal maximum, or who wants to start work without a written contract. Each of those three can be tested before you sign, for free: the licence against QBCC’s public registers, and the deposit and the contract against limits QBCC sets under Queensland law. A builder collapse rarely arrives without warning. The warning is usually sitting on the QBCC licensee register, buried in the deposit clause, or visible in the way the first progress claim is worded. Below are 15 named red flags and the exact check that proves each one.
The 15 red flags, and the register check that confirms each
Run these before you sign, not after. The QBCC publishes its public registers free on its lists and registers page, including separate registers for suspended licences, cancelled licences and excluded individuals.
| # | Red flag | The check that confirms it |
|---|---|---|
| 1 | No QBCC licence number on the quote, website, ute or sign | QBCC requires a licensee’s advertising to state the name they are licensed under and their licence number, legibly and prominently. QBCC lists penalties of up to $6,044 for an individual and $30,222 for a company. |
| 2 | Licence held in a different name to the entity on the contract | QBCC licensee register. Match the licensed entity name exactly to the company name and ABN on the contract. A licensed director trading through an unlicensed company is not a licensed builder. |
| 3 | Licence class does not cover your job | QBCC issues Builder—Low Rise, Medium Rise, Open and Project Management Services, plus restricted classes such as Builder Restricted to Kitchen, Bathroom & Laundry. QBCC states you must only carry out building work covered by your licence type. |
| 4 | Licence currently suspended | QBCC Suspended Licences Register. Suspension is often the first public sign of a financial problem. |
| 5 | Licence previously cancelled | QBCC Cancelled Licences Register. Search the individual’s name as well as the company’s. |
| 6 | A director excluded from holding a licence | QBCC Excluded Individuals Register, which lists individuals excluded from holding a QBCC licence. |
| 7 | Their workload is larger than the revenue their licence is approved for | QBCC sets an approved maximum revenue under the Minimum Financial Requirements: Category 1 covers $800,001 to $3 million, Category 2 covers $3,000,001 to $12 million, Category 3 covers $12,000,001 to $30 million. Ask which category they hold. |
| 8 | Annual financial reporting overdue | QBCC requires categories 1 to 7 to lodge from 1 August, due by 31 December. QBCC states non-compliance is an offence and can lead to fines, demerit points and licence suspension or cancellation. |
| 9 | Cannot confirm they meet the financial tests | QBCC’s Minimum Financial Requirements set a current ratio of no less than 1:1 and net tangible assets of at least $0. |
| 10 | A trail of payment disputes with subcontractors | QBCC Adjudication Decision Register, which publishes the results of adjudication decisions for payment disputes. Subbies stop being paid long before an owner notices. |
| 11 | No home warranty policy taken out for your job | QBCC requires the premium on residential construction work over $3,300 including materials, labour and GST, paid by the contractor before the earlier of work starting or within 10 business days of signing the contract. Confirm it with QBCC’s insurance search on your property. |
| 12 | Deposit above the legal maximum | QBCC caps the deposit at 10% of the contract price for a level 1 contract ($3,301 to $19,999) and 5% for a level 2 contract ($20,000 and over). Up to 20% applies only where customised or prefabricated off-site work exceeds half the contract price. |
| 13 | Front-loaded progress claims | QBCC states a contractor cannot claim more than 50% of the contract price, including the deposit, until at least 50% of the work on site is complete. |
| 14 | “We don’t need a written contract for this” | QBCC publishes contracts by value: Small Building Projects up to $3,300, Level 1 for $3,301 to $19,999, Level 2 for $20,000 and over, plus a New Home Construction contract. |
| 15 | “You don’t need council approval for that” | Order a building records search from the council covering the address, Sunshine Coast Council or Noosa Shire Council. Sunshine Coast Council issues certificates of occupancy through the same search application, and currently advises that requests may take 15 to 20 business days. |
What a Sunshine Coast builder collapse looks like before it happens
Owners imagine a collapse as a sudden announcement. It is a sequence, and by stage four your money has already gone.
- Stage one: the quote comes in well under everyone else’s on the same scope. Nobody buys materials cheaper than everyone else on the Sunshine Coast. They have left something out, or they are pricing to win cash flow.
- Stage two: the deposit and first progress claim are heavier than the work on the ground justifies.
- Stage three: trades start asking you when they will be paid. Stop paying and get advice.
- Stage four: the site goes quiet, then the licence appears on the suspended or cancelled register.
If a builder does not finish, the Queensland Home Warranty Scheme is what stands between you and the loss. QBCC states the scheme covers non-completion and defective work the contractor will not fix, up to a maximum of $200,000 on claims, and lasts 6 years and 6 months from the earliest of the contract being entered into, the premium being paid or work commencing. That cover only exists if the premium was paid. QBCC also states your insurance is affected if you pay your contractor more than is allowed by law or under your contract. Overpaying a struggling builder to keep them on site can cut your cover at the exact moment you need it.
Three money tests Queensland law gives you
Licence problems are easy to check. Cash flow problems are the ones that cost people their homes, and Queensland law gives you three hard numbers to test a builder against.
First, the deposit. On a $400,000 renovation, a level 2 regulated contract, QBCC caps the deposit at 5%. A builder asking three times that on a job with no significant off-site prefabrication is asking you to fund their working capital.
Second, the 50% rule. Put the payment schedule beside a realistic construction programme and see whether money and work stay in step. If they do not, you are exposed from the first claim.
Third, the financial category. A builder whose Minimum Financial Requirements category tops out at $3 million in approved revenue should not be carrying several times that in work at once. A builder with nothing to hide answers that in one sentence. For how payment terms should be structured, see our guide to fixed price building contracts in Queensland.
Behavioural red flags no register will show you
- Pressure to sign today. A quote that expires in days is a sales tactic, not a construction cost.
- No site inspection before quoting. Nobody prices a Ninderry or Marcus Beach block accurately from photographs. Access, fall, soil and wind exposure all move the number, which matters even more when you are building on a sloping block.
- A quote with no scope. One page and a total is not a scope, and provisional sums with no allowances shown are variations waiting to happen.
- Vague answers about who is on site. Ask who holds the supervisor licence and how often they attend.
- Bank details that change mid-project, or a request to pay a supplier directly. Stop and phone the builder on the number you have always used.
- No named designer or engineer. On our jobs the design partners are named up front, whether that is K Architecture or Reitsma & Associates. A builder who cannot say who is doing the documentation has not planned the job.
How to run the checks in the right order
- Search the QBCC licensee register for the exact entity name on the quote, and note licence class, status and history.
- Search the suspended, cancelled and excluded individuals registers for the company and each director by name.
- Search the adjudication decision register for the entity name.
- Ask for their Minimum Financial Requirements category and confirm annual reporting is current.
- Read the deposit and progress payment clauses against the QBCC limits above before signing.
- Once contracted, use QBCC’s insurance search on your property to confirm the home warranty policy exists for your address.
Our walkthrough of step one is in how to check a QBCC licence, and the wider vetting process is in how to choose a builder in Queensland.
What to do if you have already signed
If the checks fail after you have signed, do not keep paying and hope. Get the contract reviewed, and lodge a complaint with QBCC if work is defective or incomplete. Confirm whether the home warranty premium was paid, because that determines whether you are covered. Keep every invoice, photograph, variation and message, and put all instructions in writing from that point. Variations are where disputes usually start, so read how building contract variations work in Queensland before approving another one.
Roebuck Concepts is a Master Builders Queensland member working under QBCC licence 15280811 from Coolum Beach, and our Grandview Drive project at Coolum Beach won three Master Builders Queensland 2025 Sunshine Coast Housing & Construction Awards. If you want a second opinion on a quote, a contract or a builder before you commit, book a consult and bring the paperwork.
Frequently asked questions
What is the biggest single red flag when choosing a builder in Queensland?
A deposit above the QBCC limit. QBCC caps deposits at 10% for level 1 contracts of $3,301 to $19,999 and 5% for level 2 contracts of $20,000 and over, with 20% allowed only where more than half the contract price is customised work prefabricated off site.
How do I check if a Sunshine Coast builder is in financial trouble?
Search the QBCC suspended and cancelled licence registers and the excluded individuals register, then check the adjudication decision register for payment disputes. Ask for their Minimum Financial Requirements category and whether annual reporting is lodged. QBCC requires categories 1 to 7 to lodge from 1 August, due by 31 December each year.
Am I covered if my builder goes into liquidation mid-build?
Only if the Queensland Home Warranty Scheme premium was paid for your job. QBCC requires it on residential construction work over $3,300 and states the scheme covers non-completion and defective work the contractor will not fix, up to a maximum of $200,000 on claims, lasting 6 years and 6 months. Use QBCC’s insurance search on your property to confirm a policy exists for your address.
Is a verbal agreement with a builder legal in Queensland?
Not for most work. QBCC publishes prescribed domestic building contracts by value, with a Small Building Projects contract up to $3,300 and level 1 and level 2 contracts above that. If your job is priced over $3,300 including labour, materials and GST and the builder does not want a written contract, walk away.
Does Master Builders membership guarantee a builder is safe to use?
No. Industry membership is a useful signal but it does not replace the register checks. A current, correctly classed QBCC licence, clean suspension and exclusion records, a compliant deposit and a paid home warranty premium are what actually protect you.