National Construction Management on QBCC radar amid subbie payment fears

The building watchdog has stopped Sunshine Coast construction firm National Construction Management from taking on new work amid concerns about subbies not being paid.

The building watchdog has restricted Sunshine Coast construction firm National Construction Management from taking on new work amid concerns about its financial stability.

The Queensland Building and Construction Commission (QBCC) last week placed controls on the licence of the Forest Glen-based company to prevent it providing tenders and quotes unless prior approval was given by the watchdog.

The restrictions also prevent the firm entering into any new building contracts unless the prior approval of the watchdog was given and subcontractors were paid in advance.

Founded in 2006, National Construction Management (NCM) deals in commercial, residential, educational and aged care projects costing between $5m and $100m.

The watchdog also required the company to provide a list of debtors and creditors by last Friday.

National Construction Management has been banned from taking on new clients amid concerns about its financial stability.

According to QBCC records after taking on a record $12.7m worth of residential construction work in 2020/21, the company’s work book dwindled to $6.3m in 2021/22.

According to a filing with ASIC. NCM last year completed a $2.3m share-buy back from shareholders.

Projects over the past three years have included the Boonah Aged Care Facility for the Churches of Christ, the Curve luxury apartments at Birtinya and Glennon residence at Noosa. Comment has been sought from NCM director Mick Robbie.

The Queensland Building and Construction Commission (QBCC) declined to comment.

Scores of building companies have collapsed in the past year with Probuild and Oracle Homes among the high profile failures.

Even profitable building companies are struggling.

The country’s largest private construction companies have seen a major slide in profits despite total revenues rising almost 10 per cent to $14.2bn in the last 12 months, filings with ASIC show. The industry has been hit by a perfect storm of rising construction costs and labour shortages.

National Construction Management headquarters at Forest Glen

Hitting the road

The Queensland bush telegraph has been running hot on speculation IAG is the front runner to ink a deal with RACQ for the sale of the motoring club’s insurance arm. City Beat spies tell us the deal possibly worth up to half a billion dollars is being managed by Merrill Lynch and will resemble IAG’s joint venture with RACV some years back.

City Beat reached out to RACQ boss David Carter (illustrated) yesterday to get his comment on the growing speculation of the sell off that comes after the insurance arm posted an after-tax loss of $236m following flooding events and the discovery of several material regulatory breaches. He has yet to respond.

It is understood the Queensland motoring club had come to the conclusion that it was no longer viable to operate the insurance unit as a standalone business amid costly increasing weather events. RACQ has shopped the business around to other potential buyers including to South African insurers Auto & General and Hollard but Sydney-based IAG has emerged as the favoured buyer.

IAG already has a major stake in the RACV insurance business, giving it experience working with major motoring bodies. “RACQ insurance is just too small to compete against the likes of Suncorp in Queensland and has been bashed about by recent weather events,” said a person with knowledge of the deal. “IAG has always had ambition to break into the Queensland market and this would give them a red carpet entree.” IAG has declined to comment.