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Deed of Covenant and Assurance

By 14 December 2017Business, Commercial
Construction

Warning to all QBCC Licensees

If you are required as a builder or other tradesperson to have a licence with the Queensland Building and Construction Commission (QBCC), it is important to keep your Deed of Covenant and Assurance for financial requirements up to date.

We recently saw a situation where the Deed of Covenant and Assurance amount should have been $25,000.00, but was not updated when it should have been, and remained at $100,000.00, when the Company went into liquidation.

As a result, the owner of the Company was personally liable to pay $100,000.00 to the Liquidator of the Company when his personal liability may have been as little as $25,000.00.

It is always vitally important to get accounting and legal advice when you are completing your Deed of Covenant and Assurance.