Almost 1,000 Queensland contractors have had conditions applied to their licences that prevent them from providing tenders or quotes, or doing new work until they lodge their financial information with the State’s building industry watchdog.

The latest action by the Queensland Building and Construction Commission (QBCC) against 205 licensees has taken the number of licensees hit with the conditions since June to 993.

All groups are either SC1 or SC2 category licensees, which have an annual allowable turnover of up to $200,000 and $800,000, respectively.

Meanwhile, the QBCC has now cancelled the two remaining Category 1-3 licences which failed to provide their annual financial reporting. Category 1-3 licensees have an annualallowable turnover from $800,001 to $30 million.

QBCC Commissioner, Brett Bassett, said this was the second year of the annual financial reporting process, and licensees had no excuse for not submitting their financial reports.

“It’s pleasing that the majority of licensees have complied but those who haven’t are now subject to action from the QBCC, starting with conditions being applied and potentially ending up with the cancellation of their licence.

“Mandatory annual financial reporting helps reassure home owners that licensees have sufficient financial resources to complete their projects, and gives subcontractors and suppliers confidence that they are doing business with viable operators.”

The 205 had until COB today to submit their financial reporting to the QBCC or face potential licence suspension or cancellation. Since the conditions were applied, 53 licensees have submitted their financial reporting information, taking the number to 152.

They are in addition to 575 licensees hit with the same conditions in July and 213 who had the conditions applied in June.

The State’s biggest building companies that have been subject to a debt complaint in the past 12 months are being audited by the building watchdog to ensure their payment practices align with their statutory requirements.

The Queensland Building and Construction Commission (QBCC) is targeting Category 4-7 licensees that have had a monies-owed complaint or adjudication complaint in the past 12 months.

Category 4-7 licensees have an annual allowable turnover of more than $30 million.

QBCC Commissioner, Brett Bassett, said the audits would ascertain licensees’ compliance with their obligations under the Building Industry Fairness (Security of Payment) Act (BIF Act).

“The Act requires a person who receives a payment claim to pay the claimed amount in full and on time, or issue a payment schedule,” Mr Bassett said.

“We want to make sure that these debts aren’t potentially an indicator of other financial issues, or of unfair business practices by our biggest licensees.

“By auditing now, we can, if necessary, take action to help prevent future non-payment issues, which can be damaging to our industry and its participants.”

Under the BIF Act, the QBCC can take strong regulatory action against licensees who fail to pay debts, including applying licence conditions, or suspending and/or cancelling a licence.

More than 100 builders, pool installers, painters, air conditioning services, bricklayers, cabinetmakers, plasterers, concretors, plumbers, roofers and landscapers have had their licences suspended for failing to submit their financial information to the State’s building industry watchdog.

The majority of licensees in the building and construction sector have complied with tough new laws requiring all building and construction licensees to prove their financial viability.

The laws were introduced by the Queensland Government in January 2019 in an effort to reduce insolvencies and better protect consumers and subcontractors.

The licensees are now required to submit financial information annually to the Queensland Building and Construction Commission (QBCC).

QBCC Commissioner Brett Bassett said the deadline for these licensees to provide the building industry watchdog with their information was 31 December 2020.

“It’s important that the QBCC ensures a level playing field for those who do the right thing and who have lodged their financial information as required by law,” Mr Bassett said.

“After numerous opportunities to submit, and following a thorough regulatory process, the QBCC had no choice but to suspend a total of 136 licences last month,” he said.

“If the majority of licensees can meet their obligations by lodging, it’s appropriate that we take this action against those who have failed to comply with these important requirements.

“These licensees have an allowable annual turnover of between $800,001 and $30 million, they are medium to large companies with a considerable footprint.”

Mr Bassett said all of these businesses were required to stop work, under their licence suspension, and if they continued to work they could risk further regulatory action. The licensees must submit their financial information for the suspension to be lifted.

“In a building boom like we’re seeing, it’s imperative that when a homeowner hires a builder or a tradie, they know that the job will be completed,” he said.

“We see the devastation of company collapses and the impact they have on consumers who are left with incomplete projects or homes, we also see the devastation insolvencies have on subcontractors who are owed money.

“QBCC staff handle monies-owed complaints and non-completion complaints every day. These complaints are often against companies that won’t pay their invoices or don’t have the resources to finish a project.

“It’s hard for all involved, and is the reason behind the QBCC taking strong regulatory action to weed out those who don’t want to play by the rules.”

The full list of licensees who have been suspended is on the QBCC’s website.