Revealed: Builders at ‘highest risk’ of going bust
THE Queensland Building and Construction Commission has revealed the building companies most at risk of going under.
QBCC research shows companies with an annual allowable turnover of more than $30 million are "some of those at the highest risk of insolvency".
It comes as Master Builders urges builders to "hang in" ahead of a tough year ahead for the industry.
While the outlook is bleak, the QBCC's quarterly data has revealed positive signs for the sector.
The number of licensee insolvencies in Queensland's building and construction industry has decreased by almost 20 per cent quarter-to-quarter, figures show.
In the quarter ending June 2019 there were 38 insolvencies compared to 47 in the previous quarter.
The 38 closures represent 0.04 per cent of all Queensland contractors.
Companies with an allowable annual turnover of more than $30 million were the first required to comply with the Queensland Government's new minimum financial requirement laws, QBCC Commissioner Brett Bassett said.
Licensees are required to lodge more regular financial reports with the QBCC and notify the commission of any significant decrease in asset values, under the changes.
"There is no law that can provide an iron-clad guarantee against business failure or financial mismanagement, but people who invest in Queensland and workers who establish their career in Queensland need to be given the highest possible security that Queensland has a strong, stable building industry, and this current data is encouraging," Mr Bassett said.