Bold plan to stop builders going bust

NEW builders would undergo a two-year business program to reduce their risk of going broke under a new proposal put forward by the state's peak construction body.

Concerned about the "calibre about new licensees" entering the industry, Master Builders Queensland and the Housing Industry Association have joined forces to lobby for one of the most significant upgrade to builders' skills in decades.

"We have anecdotal evidence that new residential builders often do not have the necessary skills and support network to succeed in setting up a successful business," Master Builders CEO Grant Galvin said.

He said there was a need to help new builders put in place business systems to profitability price work; ensure on time payment; track finances; meet the ever-changing compliance obligations; and resolve the disputes.

Master Builders and the association have agreed to advocate for new 'low rise' home builders to be required to successfully finish a two-year 'new-builder program'.

Queensland Building and Construction Commission data, provided by Master Builders, reveals companies with a maximum annual turnover up to $800,000 are most likely to fail.

 

Master Builders Queensland CEO Grant Galvin.
Master Builders Queensland CEO Grant Galvin.

Under the plan, to be raised with Housing Minister Mick de Brenni today, the QBCC would licence organisations with industry experience to deliver the new builder course.

Early indications suggest the program would cost up to $2000.

Preliminary discussions have been held with Construction Skills Queensland about offsetting some of the cost.

"We expect the program would be delivered through a series of short courses, and via both face to face and online learning," Mr Galvin said.

"We are convinced that the costs can be justified as the program will improve the control a new builder will gain over their business, increasing the likelihood of them establishing a successful business and delivering quality built products with fewer damaging disputes."

He said the course could be implemented as part of a mandatory development program or a stand-alone program.