The reality of Queensland’s builder collapse crisis is ‘it’s fraud’, David Chandler OAM says

One of Australia’s most experienced construction industry executives, who knows the Australian construction industry inside out, has looked into the reasons for Queensland’s 50 builder collapses in less than six years, and what he sees disturbs him.

“IT’S called fraud. There’s no other name for it.”

That’s the opinion of one of Australia’s most experienced construction industry executives who says it is more than time for governments to get tough.

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David Chandler, OAM, now an Adjunct Professor at the University of Western Sydney, led the construction team for Australia’s new Parliament House.

He was CEO of Fletcher Construction Group’s Australian, New Zealand, Pacific, Asian and North American operations, and has experience in project formation and procurement for health, education and defence, as well as large-scale housing development and urban renewal.

Mr Chandler knows the Australian construction industry inside out and what he sees disturbs him. He has called it for what it is - the failure by principal contractors to pay their subcontractors for work properly done.

And Mr Chandler is dismissive of the Queensland Police simply referring on to ASIC numerous fraud complaints from subcontractors, who are reeling after a succession of liquidations in the industry since 2013 that have left more than 7000 unsecured creditors owed around $500 million.

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“We’ve seen from the banking royal commission where ASIC has been out to lunch,” Mr Chandler says.

Has the Queensland Police Service been similarly lax, or has it simply lacked the resources and skillsets to properly investigate the detailed allegations put to it since 2016?

The Palaszczuk Government says the Financial and Cyber Crime Group is adequately resourced.

Yet, since 2013, no charges have been laid over the collapse of major builders in Queensland, and nobody who has lodged fraud complaints has been formally interviewed before their matters were shunted off to ASIC.

Mr Chandler says there is no integrity in the system, a view that is hard to contradict.

Dealing with the consequences of companies indifferent and seemingly immune to laws enshrined within the Criminal Code should not be a cost of doing business in Queensland.

The level of debt left unpaid and the number of small businesses impacted deserves a meaningful response.

Aldi was handed back control of its Gladstone Rd construction site following JM Kelly's demise. Picture: Allan Reinikka

It is essential the Palaszczuk Government acts on the clear evidence of an industry in crisis and establish a police taskforce with the resources and expertise to fully investigate and, where appropriate, prosecute to the law’s full extent.

A clear signal is essential that illegal behaviour in the industry will not be tolerated.

Until that happens behaviour that would be considered intolerable in any other endeavour, will continue to destroy lives and ruin Queensland small businesses.

Originally published as The reality of Queensland’s builder collapse crisis is ‘it’s fraud’, David Chandler OAM says