Watchdog suspends Brisbane builder’s licence
The building watchdog has suspended the licence of a major Queensland builder with an annual turnover of more than $230 million after it failed to meet the regulator's financial requirements.
The Queensland Building and Construction Commission said De Luca was a large value licensee with an annual turnover of more than $230 million but it currently had a net asset position of negative $3.2 million.
QBCC commissioner Brett Bassett said this asset value represented a risk to the sector.
"Last month, we issued the company with a show-cause notice and it has been unable to demonstrate that it meets mandatory financial requirements," Mr Bassett said.
"Licensees which operate with insufficient liquidity and assets to support their turnover are operating with a heightened financial risk."
The company has 21 days to show the regulator how it will meet the financial requirements, otherwise its licence may be cancelled.
Mr Bassett said while there were no current monies-owed complaints against De Luca, its failure to meet asset requirements was a breach of QBCC licence conditions.
"New laws which came into place earlier this year are designed to help provide Queensland's building and construction industry with improved stability," he said.
"Rules around assets and the liquidity of a company help ensure that when a company takes on a construction job they have the financial capacity to finish the job.
"This in turn helps provide stability to subcontractors, suppliers, investors and consumers and helps to minimise potential collapses.
Mr Bassett said the QBCC was giving licensees every opportunity to prove they were operating within the law.
"But I will not hesitate taking swift and appropriate regulatory and enforcement action when required," he said.
De Luca could not be reached for comment.