The pressures on construction contractors are acute in a regional market such as south-east Queensland, where they continue to compete for limited resources.
Scott Hutchinson, the executive chairman of privately owned Hutchinson Builders, slammed his company’s near-80 per cent slump in pretax profit to $6.3 million as a “completely rubbish” result, and said financial performance would only improve next year after completing loss-making projects.
Gold Coast was the most problematic, he said. The company’s website shows a string of residential, commercial and health projects from Southport to Coolangatta. that the Reserve Bank of Australia’s estimate that 30 per cent of building companies were cashflow-negative was an understatement.Booming demand was a problem for construction companies because they triggered a surge in costs in a sector with fixed capacity, Mr Hutchinson said on Tuesday.
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