$30m construction firm to close after 64 years amid sector woes

The director of a Brisbane family-owned construction business founded in 1958 has revealed the unfortunate reason behind the difficult decision to wind it up.

A $30m family-owned construction firm founded in Brisbane 64 years ago is being wound up due to rising red tape and cutthroat competition.

Beech Constructions director Chris Beech said the firm will close down in the coming months as it completes its final projects and meets all its financial obligations.

Mr Beech said that none of his children want to follow him into the business and it was no longer worth keeping open because of shrinking margins and profitability.

The business, started by Mr Beech’s father in 1958, has worked on major commercial projects around the state including service stations, shopping centres, car yards and restaurants.

In contrast to other building companies that have exited the sector owing millions of dollars to subcontractors and others, Beech will be closed not owing a cent to anyone.

“There are still a few gentlemen in the industry and hopefully I will be considered one of them,” said Mr Beech, 66. “The industry has become very cut throat and the margins in the commercial space are just not there. It’s about volume these days.”

Chris Beech (far left) pictured with his brothers Bob and Brett.

Beech Constructions was founded by John Beech in 1958 with Chris entering the business in 1978 and working in project management. Chris’s brothers also were involved in the family business that at one stage included a factory making ovens.

“I don’t like where the industry is going – there is too much red tape and regulation,” he said. pointing to the State Government’s project bank accounts scheme that requires builders to set aside substantial amounts of money in trust accounts for subcontractors.

He adds that business that “used to be done on a handshake” is now largely controlled by contracts and lawyers. “We have been in business for more than 60 years but are treated like a one year old contractor,” Mr Beech said. He added the firm’s employees had been informed of the decision to close the business and most had already found new positions.

Master Builders Queensland chief executive Paul Bidwell said the decision by Beech to wind up the business underscored the dire conditions facing the construction industry.

Mr Bidwell said Beech had a long and storied history in the sector with John Beech serving as Master Builders Queensland president in the 1980s.

He said Queensland builders were not only facing deteriorating industry conditions but a “death of a thousands cuts” due to government regulation.

Originally published as $30m construction firm to close after 64 years amid sector woes