The building industry could face a further wave of insolvencies as contracts dry up due to the spread of coronavirus. The sector’s peak body has called on governments to fast-track public works to help keep the industry afloat.
The Courier-Mail Subscriber only|March 24, 2020 11:32am
QUEENSLAND'S building sector is bracing for more company collapses as home buyers and developers walk away from contracts due to the spread of coronavirus.
Master Builders Queensland deputy chief executive Paul Bidwell said builders were already reporting the loss of contracts as the economic uncertainty over the spread of the virus grew.
"We have home owners and developers walking away from contracts," said Mr Bidwell. "We have not heard from any builders that they have closed their doors yet but if things don't improve it could come about as conditions start to bite."
More than 1400 companies in the state’s construction industry have entered administration in the past five years but Mr Bidwell said things had been starting to improve.
Mr Bidwell called on the Federal Government to roll out an infrastructure investment program similar to that introduced during the Global Financial Crisis.
"The government really needs to step in to help as builders will not have projects going forward," he said. Mr Bidwell also wants the State Government to ensure an ongoing pipeline of building work.
That could include contributions towards cladding rectification on apartments and commercial buildings, increased capital expenditure on public buildings and introducing the $5,000 boost for the First Home Owners’ Grant in regional Queensland.
He said the government also should commit to delaying any new legislation or regulation, including the extension of the controversial project bank accounts program. Under the program, builders have to pay into special accounts to secure payments for subcontractors.
Message to Master Builders;
Project bank accounts are not controversial to any fair minded person, they are only controversial to you. So, don't use the virus as excuse to continue along your merry way ripping off subbies.
Typical of the MBA to use a health scare to try and weasel out of Project Bank Accounts.
As one of our members put it on the forum:
So fast tracking more developments with LESS regulations and protections where we (subbies) can get ripped off is a good plan now?
There will be builders who do not survive but there will also be builders who use Corona Virus as an excuse to liquidate their companies just like this cretinous organisation is using it to abandon Project Bank Accounts. Unfortunately, for every builder who genuinely loses their business, there will be exponentially more subcontractors who go the same way so stop your bitching.