The boss of a major southeast Queensland building company has called for a sector overhaul, declaring liquidations are hurting the whole industry.
Hayden Johnson, The Courier-Mail Subscriber only|February 13, 2020 6:00pm
FED up with businesses going bust, a major Queensland construction player has called for an overhaul of the sector to ensure builders have enough cash should things go south.
The liquidation of Vystal Construction and Development owing $4.1 million to creditors has sent shockwaves through a Queensland building industry too familiar with the tale.
Now Hallmark Homes director Anthony Gilbertson has called for the Queensland Building and Construction Commission to crack down on builders which didn’t have significant cash reserves.
Mr Gilbertson said Hallmark Homes, with an annual turnover between 60 and 90 million dollars, had at minimum $10 million in the bank to cover the company should its creditors fail to pay.
He said with those reserves and about $10 million more in assets, the QBCC permitted Hallmark Homes to turnover work up to $300 million annually.
“Based on our cash reserves there is no way on earth I would allow my business to turn over what the QBCC allows us to,” he said.
“Based on our actual turnover we always hold three-to-four times our monthly creditors’ bill in cash at bank, just in case our clients stopped paying their invoices all at once.
“It also comes in handy when we have extended periods of wet weather like we are experiencing now.”