Glen Norris, The Courier-Mail May 17, 2019 9:16pm Subscriber only
THE Queensland operations of national homebuilder Simonds Group has had its licence suspended by the building watchdog.
Melbourne-based Simonds Group told the ASX today that it had received notification of the suspension by the Queensland Building and Construction Commission (QBCC). The licence related to its wholly owned subsidiary Simonds Queensland Constructions.
The QBCC licence of Simonds Queensland Constructions was suspended after it failed to show it had enough assets to support its revenue of more than $350 million.
Simonds says the suspension was due to a “technical licensing breach” and the company working with the QBCC to address the issue.
It said that in the interim, all current building works across its Queensland operations had been suspended pending reinstatement of the licence.
Queensland represents less than 10 per cent of the group’s annual turnover of $605 million. No other regions are impacted.
In April, the QBCC said more than 100 construction companies had failed to lodge proof of their financial health with the watchdog and faced being banned from taking on new work.
It issued show-cause notices to 18 companies which were failing to meet their financial requirements, with Simonds and two other companies (pest control giant Flick Anticlimex and Christopher Contracting from the Gold Coast) failing to satisfactorily respond to the notices.
QBCC Commissioner Brett Bassett said the regulator would not tolerate building licensees breaching financial safeguards.