How to Become an Electrical Contractor
There is currently an electrician skill shortage in Australia meaning that demand for their services is high. Electricians are in demand because they provide essential services to not only residential industries, but also construction and industrial industries.
Entering the industry as an electrical contractor would allow you to take advantage of this market shortage and secure your job security. If you are wanting more freedom to choose the projects you work on, becoming an electrical contractor may be for you.
We can assist you in making this move by helping you register your business and giving you access to easily-customisable sub-contractor agreements you may need in the course of business.
You can also check out our online guide for more lucrative business ideas.
1. Qualifications and Licensing
You will need to complete a recognised qualification to be authorised to do electrical work. You will need to complete a traineeship or apprenticeship which usually takes four years. This traineeship or apprenticeship will gain you a Certificate III in Electrotechnology Electrician (UEE30811) and you will then be eligible for a license to practise.
Each State or Territory have different licensing requirements to practise as an electrical contractor. You will need a general contractor’s license in order to contract with customers and advertise your services.
You will also need a specialist contractor’s license to conduct electrical work. This varies between States and Territories therefore it is best to check with the regulator in the State or Territory in which you will operate. You can check who is the governing regulator and what their licensing requirements are with the Electrical Regulatory Authorities Council.
2. Business Registration
To operate as an electrical contractor, you will need to register your business. Registering as a business will allow you to offer your electrical services to customers in the marketplace.
You will need to be eligible to register on the Australian Business Register to acquire an ABN (Australia Business Number). When registering, you will need to decide which business structure will work best for you: either a sole trader, partnership or company. Each structure has advantages and disadvantages that need to be considered before making your application.
LawPath can help you with expedited ABN registrations.
3. Insurance
It is a good idea to take out insurance to ensure that any accidents or injuries that may occur in the course of business are covered. Examples of the various types of insurance you may need include:
- contract works insurance;
- public liability insurance;
- indemnity insurance; and
- work cover.
4. Resources you may need
You will need employment or sub-contractor agreements if you choose to expand your business beyond a ‘one person show’. You will need to set up these agreements with each employee or sub-contractor that you hire. This document should clearly outline the rights and obligations of each party to ensure that there is no confusion about what is expected from each party.
LawPath can provide easily-modifiable employment and sub-contractor agreements through our document database, and if you need further advice, can connect you with a lawyer through our online network of expert lawyers.
Conclusion
These four tips can help you get your electrical contractor business up and running in a flash. If you are needing further assistance, we can connect you with LawPath’s marketplace of business lawyers who can provide more personalised advice.
Need more help in getting started? Contact a LawPath consultant on 1800 529 728 to learn more about customising legal documents, obtaining a fixed-fee quote from Australia’s largest legal marketplace or to get answers to your legal questions.
