The New South Wales Government has announced it has received 44 recommendations from an inquiry into insolvencies in the state’s construction industry.

Minister for Finance and Services, Greg Pearce, formally released the Collins Report, which follows a three month inquiry into the sector.

“This inquiry was initiated following the rising number of construction company collapses over the last   three years which has left thousands of suppliers and subcontractors more than $1 billion out-of-pocket,” Mr Pearce said.

The proposed reforms include: 

  • The requirement for construction trusts to be established on all private and public sector building projects valued over $1 million.
  • A strengthened security of payments scheme.
  • The creation of a single statutory body, the NSW Building and Construction Authority.
  • A licensing system for all commercial  builders and construction contractors, which would limit participation to projects with demonstrated financial backing  and licensed accreditation.

Mr Pearce said the report would be available from on the Department of Finance and  Services website, until 21 February 2013 for public consultation.