Builders call for support as contracts evaporate
QUEENSLAND’S building sector is bracing for more company collapses as home buyers and developers walk away from contracts due to the spread of coronavirus.
Master Builders Queensland deputy chief executive Paul Bidwell said builders were starting to report the loss of contracts as the economic uncertainty over the spread of the coronavirus grows.
“We have home owners and developers walking away from contracts,” Mr Bidwell said. “We have not heard from any builders that they have closed their doors yet but if things don’t improve it could come about as conditions start to bite.”
He called on the Federal Government to roll out an infrastructure investment program similar to that introduced during the Global Financial Crisis. Mr Bidwell also wants the State Government to ensure an ongoing pipeline of building work.
That could include cladding rectification on apartments and commercial buildings, increased capital expenditure on public buildings and introducing the $5000 boost for the First Home Owners’ Grant in regional Queensland.
He also said the controversial project bank accounts program should be delayed.
Minister for Housing and Public Works Mick de Brenni said staff were working to identify projects that could be accelerated as well as initiatives to stimulate further building projects in the community.
“Our reforms to Queensland’s security of payment laws are an important step towards this, however, we are in unprecedented times and the rapidly evolving impacts of the COVID-19 pandemic demand a measured but flexible response,” Mr De Brenni said.