The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Untitled design (8)
FULL PROGRAM RELEASED FOR URBANITY-25 CONNECTING PROPERTY LEADERS ACROSS THE ASIA PACIFIC
FULL PROGRAM RELEASED FOR URBANITY-25 WHERE THE PROPERTY INDUSTRY CONNECTS
VIEW FULL AGENDADETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
14
print
Print
LegalAna NarvaezThu 25 Apr 19

Building Watchdog Cracks Down on Jet Skis, Racehorses

3372be33-9e85-4d42-a621-54fcf3aa44a6

Builders attempting to pass off “big boy toys” as assets will be knocked back by Queensland’s construction watchdog under new financial legislation.

Dirt bikes, racehorses and jet skis can no longer be used to prop up the balance sheet.

The Queensland Building and Construction Commission has continued its clampdown on errant builders, introducing minimum asset thresholds to protect security of payments in the industry.

The financial requirement thresholds, which have tripped up multi-national building giants, requires builders to hold minimum net tangible assets before they can exceed revenue limits.

“This means that a licensee needs to be financially stable and secure to take on more work and complete the customer’s job,” QBCC commissioner Brett Bassett said.

Bassett said that under the previous regulatory regime, builders were using personal assets to meet minimum asset thresholds.

“It might seem obvious, but it is important to stress that these new laws enable QBCC to ensure legitimate assets only are considered as part of a licensee’s ability to meet minimum financial requirements.”

The minimum financial requirement legislation is one of five new laws introduced by the regulator.

The measures were prompted in part by a swathe of construction industry insolvencies across the state that left close to 7,000 subcontractors $500 million out of pocket.

Earlier this month, the regulator issued 18 urgent show-cause notices for companies operating with “inadequate financial assets”.

The QBCC said the builders will need to demonstrate that they can improve their financial health within 21 days or risk having their licence revoked.

Related: Construction Costs Set to Rise 4pc in 2019

Boats and jet skis can no longer be used to prop up the balance sheet.


‘We’re not asking them to reinvent the wheel’

For builders with an annual revenue of more than $30 million, the first deadline for the new reporting reforms expired last month.

And more than 100 builders failed to meet the 31 March deadline, the QBCC revealed.

The regulator has now given the companies until 26 April to lodge their reports or face the prospect of licence suspension.

Bassett said it was unclear why the licensees had failed to provide the reports.

“We’re not asking them to reinvent the wheel — all they have to do is send us their financial reports from the last financial year.”

“We’ll do whatever we can to protect the industry from the devastating effects of insolvencies, because those impacts flow right through the building supply chain.”

Along with minimum financial requirements changes, the Queensland government has created a building industry taskforce to expose illegal or fraudulent activity in the industry.

In addition to the minimum financial requirements, the QBCC has introduced payment provisions for subcontractors, retention amounts with an automatic 12 month defects liability period and project bank accounts to safeguard progress payments. The QBCC has also introduced quicker access to adjudication for disputed invoices.

The building and construction industry is Queensland’s third largest employer.

HotelIndustrialRetailResidentialAustraliaConstructionFinancePolicyConstructionSector
AUTHOR
Ana Narvaez
The Urban Developer - Editorial Director
More articles by this author
ADVERTISEMENT
TOP STORIES
Exclusive

Paperwork to Plate: The Rise of Brisbane’s Midtown

Taryn Paris
6 Min
Wel Co's Thornhill Park, 40km west of the Melbourne CBD.
Exclusive

Waiting for Victoria: Why Wel.Co says State Planning isn’t Working

Marisa Wikramanayake
6 Min
Woods Bagot Principal Alex Hall and Penny Place Adelaide
Exclusive

Amplified Affordability: Woods Bagot Cracks Housing Cost Code

Leon Della Bosca
8 Min
Goodman Brisbane Industrial EDM
Exclusive

Olympics a ‘Springboard’ for Brisbane’s Industrial Age

Clare Burnett
6 Min
Colliers build-to-rent head Robert Papaleo speaking at The Urban Developer's Build-to-Rent Summit in Melbourne.
Exclusive

Get Creative Before BtR Wellspring Runs Dry, Sector Urged

Marisa Wikramanayake
4 Min
View All >
Mandarin Centre EDM
Retail

Decade On, Mandarin Centre Redevelopment Revealed

Clare Burnett
Exclusive

Paperwork to Plate: The Rise of Brisbane’s Midtown

Taryn Paris
Finance

Global Uncertainty Underwrites Australia as ‘Island of Stability’ for Investors

Taryn Paris
Every year the number of investable markets diminishes, and global capital is increasingly seeking safe harbour in Austr…
LATEST
Mandarin Centre EDM
Retail

Decade On, Mandarin Centre Redevelopment Revealed

Clare Burnett
4 Min
Exclusive

Paperwork to Plate: The Rise of Brisbane’s Midtown

Taryn Paris
6 Min
Finance

Global Uncertainty Underwrites Australia as ‘Island of Stability’ for Investors

Taryn Paris
6 Min
Build-to-Rent

The 10 Biggest BtR Projects Under Construction in 2025

Editorial Desk
5 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/building-watchdog-cracks-down-on-jet-skis-racehorses-