Rollout of Building Industry Fairness Act delayed indefinitely by Queensland Government
An expansion of laws aimed at protecting subcontractors and suppliers from unscrupulous builders will not go ahead as planned, after the Queensland Government put them on hold indefinitely. Here’s what it means
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An expansion of laws aimed at protecting subcontractors and suppliers from unscrupulous builders will not go ahead as planned, after the Queensland Government put them on hold indefinitely.
The Building Industry Fairness Act was created in 2017 after a series of devastating construction company collapses saw billions of dollars ripped out of the pockets of subbies and suppliers.
It requires builders to set up and administer designated trust accounts to hold money owed to subcontractors for each specific project and aimed to minimise the risk the funds would be spent elsewhere by the builder.
The laws have had a staggered introduction and were set to include all projects over $3m to be enforced from March 1, and all projects $1m and over from October 1 this year.
However, that section of the Act was repealed on January 30, with the Government saying the move would provide “regulatory relief for the benefit of the whole building and construction industry”.
Housing and Public Works Minister Sam O’Connor, also the MP for Bonney, signed off on the proclamation repealing the expansion of the laws.
The Government’s explanation for pausing the laws was so there would be more time for “industry education, ongoing government support and a reduction of red tape for smaller contractors”.
Meanwhile, amid a steep decline in public and subcontractor trust in the industry, some developer-builders have taken matters into their own hands.
Gold Coast joint venture partners QNY and Glenvill Developments have implemented their own project trust account software, and gained accreditation through a credit agency in a bid to instil confidence in buyers and subcontractors.
The partners have just started construction of No. 21 Broadbeach, which will be the first development in Queensland to use the Ipex software system.
The platform integrates with trust accounts created by the developer to ensure progress payments are only used to pay subcontractors and suppliers linked to each specific project.
The group has also attained iCIRT accreditation, through credit reporting agency Equifax, which they hope will give subcontractors further peace of mind.
QNY director Anthony Quinn said the move had been prompted by a volley of building company collapses and subsequently paused projects.
“It is of utmost importance we do everything we can to warrant buyers feeling confident in their decision to invest in No. 21 Broadbeach, and voluntarily securing both the Ipex payment platform and iCIRT accreditation is just another way to ensure this,” he said.
Construction industry businesses have continued to be the most likely to enter insolvency, with scores of companies failing in the past year.
Recent big names facing trouble include veteran building company Stokes Wheeler, which went into administration in January, and Benson’s Property Group, which managed to leave administration after a nine-figure funding injection.
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Originally published as Rollout of Building Industry Fairness Act delayed indefinitely by Queensland Government
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