Woes continue for subbies

BUILDING subcontractors continue to be hit by a wave of industry collapses even as new legislation designed to ensure they get paid comes into force.

More than 1400 companies in the Queensland construction sector have entered administration in the past five years, with losses totalling an estimated $390 million.

Australian Securities and Investments Commission data shows 303 building companies entered administration in 2016-17 compared to 328 in 2015-16.

In the first nine months of this financial year, 186 companies in the sector entered some form of insolvency administration.

High-profile building industry collapses in recent years have included Cullen Group, Trac, CRCG-Rimfire and Rockhampton’s Metro Builders.

From March 1, builders working on State Government projects costing between $1 million and $10 million will be required to set up project bank accounts to ensure subbies are paid on time. PBAs will be extended to private sector projects in January 2019.

Housing and Public Works Minister Mick de Brenni said four government projects had so far been awarded that require using PBAs, 11 tenders were currently being assessed, and another 14 were out to tender. PBAs ensure people are paid for the work they perform, Mr de Brenni said.