The building group, which has operated in Queensland since 1996 and last year finished more than $17 million worth of work, has closed its northern operations.
Hayden Johnson, The Courier-MailSubscriber only|June 30, 2020 1:09pm
THE licence of multimillion-dollar Queensland builder Rivergum Homes has been cancelled after it was unable to prove to the state’s building watchdog it had enough capital to keep operating.
Rivergum Homes, which had an office in Queensland, South Australia and Victoria, shuttered its northern operations last year due to the poor performance of the construction market.
This month the Queensland Building and Construction Commission cancelled its building licence.
The building group was formed in 1994 and operated in Queensland since 1996.
In June, 2019, Rivergum Homes Managing Director Victor Said revealed the company would “put its Queensland expansion plans on hold”.
“We have been building in Brisbane for the past 15 years – largely for the investor market but with more recent plans to expand our retail presence,” he said.
“However, the reality is that the Queensland market is not performing well and we have concluded that the business will be best served by pausing our ambitions until it rebounds.”
Rivergum’s licence was this month cancelled under the State Government’s Minimum Financial Requirements, which requires building companies to prove they have sufficient working capital for their turnover.
But the company says it is no longer active in the Queensland market, and does not meet the capitalisation requirements of the QBCC.