Seven small Qld construction firms collapse in one week

Seven Queensland construction firms have collapsed in the past week alone with the industry under “immense” pressure amid a brutal summer.

• Latest: Award-winning Brisbane builder folds

At least seven small Queensland construction firms have collapsed in the past week alone including an award-winning builder of more than 20 years owing nearly $300,000.

The spate of liquidations comes with Queensland gripped in a housing crisis while many parts of the state have been ravaged by a “brutal” summer storm season.

Liquidators say they’re receiving “daily” inquiries from small mum and dad run businesses slated for closure.

It includes award-winning family-owned building firm CMG Homes which collapsed this week owing nearly $300,000.

Master Builders Queensland chief executive Paul Bidwell said the industry was under “immense pressure” and warned that more businesses would “go to the wall” without government support.

Master Builders Qld CEO Paul Bidwell.

“It’s always disheartening to hear that any business has been forced to close its doors – and unfortunately, it’s something that is happening more often as the challenges for the building and construction industry have continued to mount in the wake of the pandemic,” Mr Bidwell said.

Worrells Brisbane and North Lakes principal Lee Crosthwaite said he was fielding daily inquiries from “small” construction companies.

“This week alone there’s been a plumber, a concreter, a builder, a lot of them are on the smaller end,” Mr Crosthwaite said.

“There’s certainly been a slow down in the works, contracts being pushed off or not happening or not in the pipeline.

“High input versus the market rates that they’re being charged and some are suffering from being unable to find quality staff.”

Mr Bidwell said the cost of building a home in Queensland had soared by 42 per cent over the past four years.

He said the sector was facing a “huge” pipeline of major works amid a national skills shortage.

On top of that, dozens of suburbs throughout Queensland had been left in tatters following weeks of cyclones, storms and flooding further adding to building delays.

“It’s estimated we need an extra 18,000 tradies each year to meet our longer-term housing and infrastructure targets – but we just don’t have those numbers,” Mr Bidwell said.

“It’s critical we don’t burn out the people we’ve already got and retain more skilled workers to overcome these labour shortages.

“Our industry is under an immense deal of pressure, and we need government support to stop more businesses going to the wall.”

According to the Australian Securities and Investments Commission‘s registry, seven construction companies have gone into liquidation or restructuring in the past week alone, the majority based in the South East.

It includes CMG Homes, Southern Cross Building Services Queensland, Seth Developments trading as Skyline Roofing and Construction, Plasteriteqld, Turner Constructions and Developments trading as KMA Roofing, Accurate Flooring, and Set Tiling.

Mr Bidwell said it was crucial that governments removed the roadblocks that were preventing the building industry “getting on with the job”.

“We need fair regulation of the entire supply chain, and to roll back unnecessary red tape,” Mr Bidwell said.

“This will boost productivity in our industry, break down complexity, and cut costs that don’t provide a clear benefit.”

Housing Minister Meaghan Scanlon. Picture: Glenn Campbell

Housing Minister Meaghan Scanlon said the state government was working hard with key industry stakeholders to support consumers, contractors and manufacturers.

Ms Scanlon said the state government had reduced red tape to help deliver more homes in Queensland and was offering free TAFE and apprenticeships to grow its construction workforce.

She said the government had also introduced a bill to unlock land and allow new pathways for housing developments.