A new get-tough approach by the state’s construction watchdog to building company who had insufficient funds to support their turnover has sparked a $122m capital injection into the troubled sector.
Glen Norris, The Courier-MailSubscriber only|June 7, 2019 10:26am
NEW powers given to the state’s construction watchdog to ensure building companies have enough financial backing have seen more than $122 million worth of capital injected into the industry.
Housing and Public Works Mick de Brenni said the capital increase followed financial reviews of 269 licensees by the Queensland Building and Construction Commission.
The capital injection came from companies which were found to be operating with insufficient assets to support their turnover.
The building w atchdog has in the past few months suspended the Queensland licences of a number of builders including Simonds, De Luca Corp and UK firm Laing O’Rourke’s Australian arm. All got their licences back after agreeing to boost their capital.
“The Queensland Building and Construction Commission (QBCC) has been compelling companies to raise and maintain an adequate level of working capital, in a step to reduce the risk of instability,” Mr de Brenni said.