42,500 building licences ‘ripped up within weeks’
The licences of 42,500 Queensland mum and dad builders could be ripped up within weeks if they fail to reveal their financial status to the state's construction watchdog.
The Queensland Building and Construction Commission has given builders in categories one and two - those with an annual turnover up to $800,000 - until the end of the month to prove they are solvent or risk having their licence terminated.
About 70 per cent of the state's affected builders are yet to lodge the required financial reports, The Courier-Mail can reveal.
QBCC Commissioner Brett Bassett said thousands of builders yet to lodge their financial status were risking suspension
"Licensees are lodging their annual reporting information every day, and we're getting a steady increase as the deadline approaches," he said.
"Licensees who fail to lodge may face regulatory action after the deadline."
In an effort to limit damage to subcontractors and customers, builders are required to prove to the QBCC their company has enough working capital to survive.
Public Works Minister Mick de Brenni said the watchdog would use its financial oversight powers to protect tradies and homeowners within the $45bn industry.
"Already, Minimum Financial Requirement reporting has seen $1.2bn of working capital
injected into the Queensland building and construction industry last year," he said.
Last year 95 contractors went bust, equalling about one insolvency per 1000 licences - however the government's COVID-19 response may have contributed to the fewer collapses.
A building boom across Queensland has also raised fears of a significant increase in the number of defects later this year.
"Defects aren't usually discovered until after a home is built, so while there's a building boom underway, defects relating to this are unlikely to be reported for another six to 12 months," Mr Bassett said.
To combat the risk QBCC has launched a statewide roadshow to educate tradies about their financial responsibilities and job workmanship.
"During a boom time, it's more important than ever for the quality of work to stay at a high standard, and these events will provide valuable information to help ensure that," Mr de Brenni said.
Homeowners concerned about potential defects should get in touch with their builder in the first instance and, if they are unsatisfied or defects are not rectified, should contact the QBCC for assistance.
Painting (including internal and external, including substrate preparation)
Joinery (including door and window installation and architraves, skirting and trims and cupboards)
Internal linings (including internal wall and ceiling plasterboard)
Tiling (including floor and wall)
External waterproofing membranes
Linings (internal ceilings)
Driveways and paths
Joinery (installation of door and window hardware such as locks and hinges)
Originally published as 42,500 building licences 'ripped up within weeks'