GOLD COAST BUILDING INDUSTRY SET FOR 'MAJOR SHAKEUP', INSOLVENCY FIRM SAYS

GOLD COAST BUILDING INDUSTRY SET FOR 'MAJOR SHAKEUP', INSOLVENCY FIRM SAYS

MORE than 84 Gold Coast construction businesses are at high risk of insolvency with more than 3.7 per cent of the total industry facing financial failure within 12 months, according to new data by a specialist accounting firm.

SV Partners, which specialises in insolvencies, says the Gold Coast construction industry could be in for a major shake-up for builders.

"Commonwealth Games spending has buoyed construction and infrastructure businesses on the Coast but they will need to tighten their belts or start looking for new business very soon," says SV Partners director Matthew Bookless.

"When one construction company starts to struggle, it can quickly have a roll-on impact very quickly," he says.

"If one local construction business cannot pay its creditors, it can have significant impacts on other contractors' cash flows.

"Builders and construction contractors need to ensure that they have enough capital to weather short-term disruptions to their cash flow and to seek professional advice in the event downturn in business is likely to exhaust available capital reserves."

Last month, two Gold Coast-based companies collapsed leaving at least 133 tradies and staff more than $3.4 million out of pocket. Queensland One Homes and Empire Constructions went under, leaving 35 home buyers in limbo.

SV Partners August 2017 Commercial Risk Outlook Report also reveals that a total of 542 Gold Coast businesses across all industries are at risk of imminent financial failure representing 3.6 per cent of local businesses and industries. Overall this is among the highest in Queensland, with only Logan/Beaudesert set to have a higher failure rate.

The report draws upon millions of commercially-sourced records and data assets to create and analyse comprehensive risk profiles of more than half a million of Australia's incorporated businesses.

However, the data provided some good news for Queensland industries with agriculture, forestry and fishing and health care showing low numerical statistics of businesses at high risk.

Business News Australia

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

A game changer? Aspiring to the new standard on workplace mental health
Partner Content
Work health and safety regulators have been more active in the area of mental health ri...
Aon
Advertisement

Related Stories

Pacific Fair sale puts the spotlight on buyers for Dexus’ minority stake

Pacific Fair sale puts the spotlight on buyers for Dexus’ minority stake

The Gold Coast’s Pacific Fair shopping centre, fresh from pla...

Olivia Newton-John's Byron Bay resort sold to Twiggy Forrest

Olivia Newton-John's Byron Bay resort sold to Twiggy Forrest

Mining magnate Andrew 'Twiggy' Forrest's investment fir...

Qantas dusts off fleet to resume international flights ahead of schedule

Qantas dusts off fleet to resume international flights ahead of schedule

Qantas Airways (ASX: QAN) is gearing up to spread its wings much ea...

Start-ups ready for orbit aboard Space Machines Company’s first mission

Start-ups ready for orbit aboard Space Machines Company’s first mission

The start-up world is clamouring for its place in orbit with Austra...