19Licence conditions

19 Licence conditions (1) A licence is subject to the following conditions: (a) the licensee must comply with this Act (including any approved code of practice); (b) the licensee must comply with all relevant competency requirements; (c) the licensee must comply with all relevant laws;

(d) the licensee must— (i) meet the standard reasonably expected of a licensee; and (ii) demonstrate a level of competence reasonably expected of a licensee; and (iii) demonstrate the operational and financial capacity to comply with— (A) its obligations under this Act and relevant laws; and (B) its legal obligations to subcontractors and other people engaged by the licensee; and (iv) not engage in improper or unethical conduct; (e) on request by the registrar, the licensee must provide stated information about any matter mentioned in paragraphs (a) to (d); (f) any other condition the registrar considers appropriate; (g) any other condition prescribed by regulation. Note It is an offence under s 94 for a licensee not to comply with a condition of their licence. (2) Without limiting subsection (1) (f) or (g), a condition may be imposed or prescribed in relation to the following matters: (a) limiting the residential development activities that may be undertaken concurrently by the licensee or an associated entity; (b) preventing new residential development activities from being undertaken by the licensee or an associated entity; (c) limiting the size or kinds of residential development activities that may be undertaken by the licensee or an associated entity; (d) requiring the design documentation for residential building work to be independently reviewed or inspected;

(e) requiring inspections of stated residential building work by a stated person and the provision of information about the inspections; (f) minimum financial requirements to be satisfied by the licensee or an associated entity; (g) restricting stated people from involvement in stated residential development activities. 1 Kerr Developments Pty Ltd is a new entrant into the residential development industry. The registrar imposes a condition on the company’s licence limiting the company from developing multi-unit housing with more than 10 units or with a value of more than $5 million. 2 Foord Developments Pty Ltd holds a licence and is the parent company of 3 subsidiary companies, each responsible for the development of different residential development projects. One of the subsidiaries is placed under external administration and defects relating to a number of buildings constructed by the insolvent company have been identified. The registrar imposes a condition preventing the subsidiary companies from undertaking new projects and requiring additional independent review of design documentation for the subsidiaries’ projects. (3) Before imposing a condition under subsection (1) (f), the registrar must— (a) give the applicant or licensee a written notice that— (i) states the condition the registrar proposes to impose; and (ii) states the reason the registrar proposes to impose the condition; and (iii) tells the person that they may give a written response to the registrar about the matters stated in the notice not later than 28 days after the day the person receives the notice; and (b) consider any response given to the registrar in accordance with paragraph (a) (iii).