“The building industry is vital to our local economy but it is one of the most heavily regulated industries – it has had significantly more changes than any other industry in recent times,” Mr Bathersby said.

Since late 2018 there have been massive changes which include new Security of Payment legislation, the creation of a project bank accounts regime, changes to the Minimum Financial Requirements (MFR), regulation of the use of combustible cladding and establishing a chain of responsibility for building products. 

“Everyone in the industry must learn a new set of rules. It’s so important for people to be across the changes because if they don’t comply, people could lose their licences or businesses,” Mr Bathersby said.

The new Security of Payment provisions have now been in place for approximately 12 months and have been generally well received by the industry.

“The deadline for MFR compliance is looming on 31 December. There is a concern amongst the industry that a lot of people aren’t dealing with that deadline and its consequences seriously enough. If people aren’t getting their accountants involved by now, they have almost left it too late.”

The MFR report must be in by the deadline but there might be a 12 month period of grace for certain classes of Licensees to get their finances in order by 31 December 2020.

 “It’s a very important tool to protect against insolvencies in the building industry, which are so common,” Mr Bathersby said.

“There is real concern in the industry that some top tier builders won't meet their MFRs by 31 December 2019. And they will not get the benefit of the 12 month period of grace. If they don't meet their MFRs, their licenses will be suspended or cancelled.”

It is anticipated that 2020 will see new legislation to tweek the Security of Payment provisions and expand the existing (but presently restricted)  Project Bank Accounts (PBA) regime so that it applies to all government building work over $1,000,000 from 1 July 2020.

“The government has a plan to implement PBAs across the whole of the building industry. If implemented, that plan would impose a significant change. It could mean that every job would require project bank accounts to be set up,” Mr Bathersby said.

Although Master Builders Queensland Sunshine Coast Regional Manager Will Wilson said he does not believe that we will see PBAs on houses in the foreseeable future.

“This is certainly an issue that will require significant changes to a large number of commercial builder’s administration practices,” Mr Wilson said.

The consequences of the combustible cladding audit will continue to roll out in 2020 with fire engineering reports required for affected buildings by May 2021.

“We know there are going to be some issues around who is responsible for the cost of replacing cladding that could cause fire issues. The process of assessment is nearly complete, but how the replacement process will proceed is yet to be confirmed,” Mr Wilson said.

“One thing is for sure, the insurers have moved to reduce their exposure!”

The dust disease Silicosis is also expected to continue to rear its ugly head in parts of the Industry. It’s expected that there will be more cases of the devastating disease despite the introduction of compulsory masks for cutting of stone products.

“Our workplaces are filled with dust and so many of the products we work with daily contain various quantities of silicon, we need to educate ourselves and take precautions,” Mr Wilson said.

“Currently we need to be sure that we have appropriately fitted protection and have Work Method Statements for all processes that involve making or cleaning dust. The general industry Code of Practice is well underway and so we will have some guidance here soon.”

As technology advances, Mr Bathersby says there is a significant need to increase cyber security awareness into 2020, across all businesses, not just in the construction industry.

“In the building industry, there are large sums of money and many transactions between relatively unsophisticated systems, so cyber threats are rife.

Garland Waddington has encountered frauds where email servers have been hacked or a hacker has sent a follow up email to get money paid to a different Bank account. 

“Businesses should always make it clear to customers and clients that they will never be asked to change where they pay an invoice by an email,” said Mr Bathersby.

Sunshine Coast will tick off some massive milestones in 2020, including the completion of the international runway at the Sunshine Coast Airport.

“The next big thing that the Sunshine Coast needs to consider is the mass transit strategy which will investigate light rail, heavy rail and the use of the CAMCOS corridor,” said Mr Bathersby.

“The people are coming; what the Coast needs to do, what business needs the Council needs to do, is manage and facilitate the growth on the basis that it’s inevitable.”

 “If we don’t have light rail before 2041, on present indications, Sunshine Coast will grind to a halt.

“All of this will benefit the construction industry and a healthy construction industry ensures a healthy economy for the Coast and the region. 

Construction Industry Issues for 2020

1. Minimum Financial Requirement –deadline 31 December 2019

2. Project Bank Accounts (PBA) legislation – expected July 2020

3. Security of Payment (BIF3) legislation – expected July 2020

4. Combustible cladding – Fire engineer assessments May, 2021

5. Cyber security

6. Silicosis