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.