Add Category
The suspension of a major Gold Coast construction company's licence could spell the end of locally built high-rises in the city, according to the state's peak building industry body.
Key points:
- GCB Constructions was forced to stop work earlier this week
- The builders were already prohibited from providing tenders or quotes unless approved in writing by the QBCC
- The company did not return requests for comment
The Queensland Building and Construction Commission (QBCC) has suspended the licence of GCB Constructions after it allegedly failed to pay debts.
The company has been unable to undertake any building work, including any that might currently be in progress, since late yesterday.
The state's building watchdog said in a statement it took suspension action on Tuesday for the company failing to pay debts, which breaches the Minimum Financial Requirements for holding a building licence in Queensland.
GCB Constructions is currently working on residential projects on the Gold Coast including Marine Quarter Apartments at Southport and Vantage at Benowa.
It is also involved in the construction of a surf club.
Master Builders Queensland Gold Coast regional manager Adam Profke told the ABC the family-owned construction company had been operating in the region since the 1980s.
He said it was a "massive deal" for the city to risk the closure of another large building company which specialises in large-scale apartment construction.
"It's also a big deal because we have to build high-rises, towers that [are] 60 storeys in height," Mr Profke said.
"That takes a very, very specialised group of people to do that and unfortunately local talent, potentially with GCB disappearing, we're actually becoming less self-sufficient as a community here on the Gold Coast.
"So we've become really reliant on the larger, major contractors coming out of Brisbane coming down the coast to do that work for us."
Conditions already imposed
The suspension action comes after the building watchdog imposed conditions on the company's licence in June which stopped GCB Constructions providing tenders or quotes and entering into any new contracts unless it had written approval from the QBCC.
The embattled building company has also been required to provide the QBCC with an listing of debtors and creditors by 5pm each Friday since June 30.
GCB Constructions did not return requests for comment.
The company still holds an unrestricted building licence in New South Wales.
Mr Profke said the company could operate in NSW as the financial rules and conditions imposed by the Queensland regulator only impacted work in Queensland.
He said the suspension was effectively a "stop work notice" and it would be a "tough road" for the company to have the suspension lifted.
"The developers behind a lot of the projects, particularly where work has started, obviously, developers want to get those projects finished," Mr Profke said.
"Potential unit and apartment owners certainly want to move into their apartments … and it's no secret on the Gold Coast we have a housing shortage.
"The more apartment housing stock that we bring online obviously frees up space for people renting and other apartments. So there's a big, massive, knock-on effect for the community."
Apartments 'will take longer'
The Master Builders regional manager said home owners waiting for new apartments would likely wait longer, but developers behind the current high-rise projects being built by GCB Constructions were pushing to get them completed.
"Certainly the developers that I've spoken to in the last 24 hours are keen to get their projects finished," Mr Profke said.
"It is unfortunate for some subcontractors. There are allegations of some monies owed, which is very unfortunate, and it's certainly not something that we support. But there are measures in place for those subcontractors."
Any subcontractors who have been affected are encouraged to contact Master Builders.