QBCC cancels licences of almost 100 builders in crackdown

Queensland’s building watchdog has cancelled the licences of almost 100 builders as part of a crackdown on operators who have failed to meet reporting requirements. Full list

One in every four company insolvencies are from the construction industry.

Queensland’s building watchdog has cancelled the licences of almost 100 builders as the financial crisis continues to envelop the construction sector.

The Queensland Building and Construction Industry (QBCC) said the builders, including two with annual revenue up to $240m, had failed to lodge mandatory annual financial reporting that has been due at the end of last year.

QBCC commissioner Anissa Levy said the reporting helped ensure builders were financially sustainable, could complete projects they take on and could pay their employees and suppliers.

The building industry has been hit by a perfect storm of labour shortages and material price hikes in the past 12 months that has seen the demise of major builders including Probuild, Condev, Privium Homes, and Pivotal Homes.

“It is only fair and right that people are paid what they are owed for their labour and materials and our reporting requirements help to ensure that this happens,” Ms Levy said.

The QBCC said it cancelled the licences of 97 builders after issuing multiple reminders over a prolonged period to encourage them to comply with their financial reporting requirements.

As of last month, almost 99 per cent of the 10,709 licencees in category 1-7 had lodged the required annual financial information.

Ms Levy encourages any licensees with concerns or questions about their financial reporting to contact the QBCC to discuss potential options available to help them.

Recent company collapses include that of Probuild. Picture: NCA NewsWire / Andrew Henshaw

QBCC licensees have been required to comply with annual financial reporting requirements

since January 1 2019, under the minimum financial requirements for holding a licence.

Licensees in these categories have annual allowable maximum revenues ranging from

$800,000 to more than $240 million Of the 96 cancelled licences, two were from categories 5 to 7 and one was in Category 4.

Revive Financial head of business restructuring and insolvency Jarvis Archer said building company collapses continue to dominate headlines with one in every four company insolvencies being in the construction industry.

“The wet weather in south-east Queensland has only added more difficulty to the existing challenges in the industry,” said Mr Archer.