Building chiefs have warned of a looming cash flow crisis that could send subcontractors operating on razor-thin margins to the wall as a result of construction’s unprecedented shutdown, the biggest hit to the industry since the pandemic began.

The two-week shutdown across Greater Sydney construction, which employs hundreds of thousands of workers, would force the state’s contractors, running on very tight profit margins, into a scramble for cash to pay staff and suppliers, BuildCorp boss Tony Sukkar said.