BUILDING FIRMS ON FINAL WARNING OVER FINANCIALS
MORE than 100 construction companies that have failed to lodge proof of their financial health with the Queensland building watchdog face being banned from taking on new work.
The Queensland Building and Construction Commission (QBCC) said construction companies, which hold the highest value building licence in the state, have been given three weeks to explain why they failed to lodge mandatory annual financial reports.
Tougher new laws under Housing and Public Works Minister Mick De Brenni require building companies to submit annual financial reports to the QBCC.
The QBCC said it was issuing show-cause notices to at least 103 licensees under the new mandatory financial reporting regime that took effect this year.
The QBCC has given the companies – which each have a maximum allowable revenue of over $30 million a year – a deadline of April 26 to lodge their reports or face the prospect of licence suspension.
QBCC Commissioner Brett Bassett said licensees in categories 4 to 7 were required to submit their financial reports to the QBCC by the end of March.
“While the majority of these licensees have already submitted their reports, there are more than 100 which haven’t,” Mr Bassett said.
“It’s unclear why these licensees have failed to provide the reports – all they have to do is send us their financial reports from last financial year.”
If the information is not provided, the companies may be prohibited from entering into any new building work contracts and also risk further action, including fines and licence cancellations.
During the show-cause period, the companies are given the opportunity to provide reasons why they haven’t provided their financials, as required under Queensland law, and this will be the last chance to lodge the documents.
The QBCC did not name the companies but said it could do so after the showcause period. Last month, the building watchdog suspended the licence of Laing O’Rourke’s Australian arm concerned about its financial viability.
The suspension meant Laing O’Rourke was banned from doing any building work in the state. The license was later reinstated after Laing O’Rourke injected $32 million into its local operation.