More builders will go broke in Australia because of its unique contracting system that loads all the risks of a project on to builders, says Scott Hutchinson, the chairman of Queensland’s biggest building company, privately owned Hutchinson Builders.

Under the local system, developers typically put all risks of delivery, weather and below-ground conditions on to a head contractor’s shoulders, making them more vulnerable than their counterparts in the UK, where developers are often required to put in capital, Mr Hutchinson said.