QBCC lifts builder's suspension
THE licence suspension of De Luca Corporation Pty Ltd has been lifted by the Queensland Building and Construction Commission (QBCC) after the company restructured its balance sheet to meet the regulator's financial requirements for holding a licence.
De Luca management took a number of steps on the weekend to implement an $8 million improvement of its balance sheet which brought the company to a positive net asset position of $4.5 million.
QBCC Commissioner Brett Bassett said he was pleased the company was now operating within the law.
"The QBCC worked closely with the company over the weekend, and during this process the company has now decided to include a number of significant related-entity debtor amounts in its balance sheet, that were previously excluded," Mr Bassett said.
"This is a positive result and means the company's construction work is supported by an adequate asset base.
"The majority of licensees understand the financial requirements and work with their accountants to ensure these are met.
"However, we will not hesitate to take regulatory action when companies are outside of the mandatory requirements.
"It's pleasing that De Luca Corporation Pty Ltd has taken these steps to meet the law.
"My message to other licensees is clear - get your books in order or face regulatory action.
"Don't wait until your licence is suspended and you're forced to stop work."
Since the new laws took affect at the end of March, De Luca Corporation Pty Ltd has been the fourth large licensee to be suspended for failing financial requirements.
The laws were designed to help provide Queensland's building and construction industry with improved stability and help ensure that when a company takes on a construction job they have the financial capacity to finish it.
QBCC staff are currently working through all of the annual reports provided to it by high value category 4 - 7 licensees, to ensure they meet minimum financial requirements.