Major builder’s licence cancelled under state’s new cash laws
THE licence of multimillion-dollar Queensland builder Rivergum Homes has been cancelled after it was unable to prove to the state's building watchdog it had enough capital to keep operating.
Rivergum Homes, which had an office in Queensland, South Australia and Victoria, has shuttered its northern operations after the Queensland Building and Construction Commission cancelled its building licence.
The building group was formed in 1994 and has operated in Queensland since 1996.
Rivergum's licence was cancelled under the State Government's Minimum Financial Requirements, which requires building companies to prove they have sufficient working capital for their turnover.
In the 2018-19 financial year, its Queensland operation undertook 73 projects valued at $17.9 million, more than the $528,901 it undertook in the previous financial year.
Rivergum Homes' Queensland building licence was suspended in May for "failing to satisfy financial requirements" before it was cancelled on June 25.
The company did not respond to a request for comment but noted it would support existing Queensland customers.
"Rivergum Homes has concluded its operations in Queensland, however, we are committed to completing existing work and being available to all of our valued customers," its website said.
The company is still operating in South Australia and Victoria.
A spokesman for the QBCC said the laws ensured the financial sustainability of the industry.
"As a result of this focus, last year our work helped see more than $1.2 billion worth of working capital injected into major Queensland construction companies," he said.