BUILDING & CONSTRUCTION: What's New

3 August 2015

As published in CK Momentum Issue 1  (Click here to download)

The building and construction industry is facing mixed messages about the year ahead.

Litigation & Insolvency Partner Sarah Davies, looks at some of the big issues facing the industry.

OUTLOOK

In the 2013 financial year, the construction industry had the highest number of insolvencies and liquidations of any industry, accounting for 24% of all business failures. One of the primary causes of business failure was inadequate cash flow. 

Master Builders Australia (“MBA”) has consistently said that restoring business confidence is the key to a turnaround in the construction industry. It is predicting a mixed outlook across the various sectors of the industry over the next 3 years. Whilst residential building is tipped to increase, non residential building is likely to flat line and there may be further decreases in the amount of engineering construction work.

MBA’s latest national survey shows a big rise in builder confidence in Q4 2013, adding weight to its forecast that residential building is set to improve strongly over the next 3 years.

QLD REFORMS

Building industry regulation in Queensland is being overhauled after the 2012 inquiry into the operation and performance of the Queensland Building Services Authority. The Government’s response to that inquiry in mid-2013 included the replacement of the QBSA with a new body – the Queensland Building & Construction Commission (“QBCC”), and significant change to the regulation of the building and construction industry in Queensland with a focus on licensing, certification, dispute avoidance and management.

Some of the important changes are as follows:

  • The QBCC commenced on 1 December 2013, with a new professional governing body.
  • A mechanism for the review of insurance decisions and home owner complaints will be established, in an attempt to reduce the number of applications for review being made to the Queensland Civil & Administrative Tribunal.
  • QBCC will consider the development of a rapid domestic adjudication model to fast track domestic building disputes.
  • It is hoped there will be improved governance through contractor licensing, a focus on consumer and contractor education about their rights and obligations, dispute handling, consumer protection against loss through statutory insurance, and prosecutions.

How these reforms play out for industry participants in Queensland remains to be seen. Anecdotal evidence from our clients suggests that the QBCC is taking a stricter and more diligent approach to the investigation and resolution of residential building complaints. Those engaged in residential building disputes should anticipate less leniency will be shown by the QBCC than before.

This bulletin is produced as general information in summary for clients and subscribers and should not be relied upon as a substitute for detailed legal advice or as a basis for formulating business or other decisions. ClarkeKann asserts copyright over the contents of this document. This bulletin is produced by ClarkeKann. It is intended to provide general information in summary form on legal topics, current at the time of publication. The contents do not constitute legal advice and should not be relied upon as such. Formal legal advice should be sought in particular matters. Liability limited by a scheme approved under professional standards legislation. Privacy Policy

Subscribe

…and we’ll email you valuable insights into issues affecting you and your business.

More Insights

Lapsing of Staged Development Consents – An Update

Lapsing of Staged Development Consents – An Update

Key Takeaways This decision clarifies the circumstances surrounding the lapsing of development consents. The case highlights the importance of the wording in each unique development consent. Development consents may not lapse in the context of staged developments...

read more
COVID-19 Splinter Award Continuation for Councils

COVID-19 Splinter Award Continuation for Councils

Key Takeaways An award has been proposed largely in the same terms as the Local Government (COVID-19) Splinter (Interim) Award 2021 made by the Commission which will remain in force until April 2023. Paid COVID-19 special leave, a job retention allowance and leave...

read more