QBCC Suspend Construction Giant’s Licence for Financial Breaches

QBCC Media Release

MEDIA STATEMENT

8 March 2019
QBCC suspends construction giant’s licence for financial breaches
The Queensland Building and Construction Commission (QBCC) has suspended Laing O’Rourke
Australia Construction Pty Ltd’s licence today.
QBCC Commissioner Brett Bassett said the company’s Queensland licence was suspended after it
provided written representation to a show cause notice issued by the QBCC on 30 January 2019.
“It came to our attention that the company wasn’t meeting the Minimum Financial Requirement
(MFR) laws,” Mr Bassett said.
“The company was given a show cause notice and provided updated information, however it failed to
show how the company was operating within the law, and with allowable asset levels.
“Essentially, this means the company is operating outside its allowable annual revenue limit and this
presents a serious risk of financial harm to the sector.
“The QBCC has issued a licence suspension, the next step in the regulatory process, effective
immediately, which means that work on the company’s Queensland sites must stop.”
Mr Bassett said the suspension came after an 11 month investigation.
“In April last year we began investigating the company. Prior to this investigation the last time the
company was required to provide financial information to the QBCC was in March 2014.”
He said that this important decision serves as a reminder to every construction company working in
Queensland.
“If you hold a QBCC licence and work in Queensland, you need to adhere to local laws, it’s that
simple,” Mr Bassett said.
“While it has taken almost a year for this investigation to reach this point, I want to remind licensees
that new laws which restore annual reporting requirements have now started.
“Phase 1 of these changes require all building and construction companies that have annual revenue
of more than $30 million to provide annual financial information to the QBCC.
“The first deadline under the new laws is fast approaching, the big players in the building and
construction industry have until the end of this month to provide us with their financial reports.
“By the end of 2019, every licensee will be required to meet new annual financial reporting rules.
“This will help the QBCC to better protect subbies, suppliers, other companies, homeowners and
investors from potential financial detriment when licensees are operating with poor financial health.”
ENDS
Media contact: Chris Reid – 0418 656 244

Read the Courier Mail article here.