CANBERRA'S leading builders have backed the call for an independent inquiry into the industry, saying better oversight could avoid the often cyclical insolvencies that hurt buyers and trade suppliers.
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As the Master Builders Association's Jerry Howard calls for a broad review - saying it was easier to set up a building company than a coffee shop - the industry veterans said improved financial training was essential.
George Tanchevski, who co-founded Mitchell-based Classic Constructions in 1987, said a review could look at an initial limit on how many jobs a new builder could begin.
''What they need to review is how licences and permits are being issued,'' Mr Tanchevski said.
''I don't begrudge a young builder, but people are going out with a Cert IV [after] six to eight months and go and get jobs and undercut everybody - but they don't have the experience and they come unstuck.''
Anthony Corver founded ABC Constructions 30 years ago and said a more difficult market - as is tipped for 2014 - created dangers for builders who wanted to undercut others.
''When the market tightens up, the prices are cut down, but the materials and labour costs don't go down,'' Mr Corver said.
''In terms of licensing and building regulations it's got harder [since I started], but it's the business side of it - can they run a chequebook, manage cash flow?''
Sustainable Development Minister Simon Corbell said builder licensing and training requirements would be looked at under the current Building Act review, but training was competency rather than time-based. He has said another inquiry into the industry was not needed.
''Insolvency triggers an automatic suspension under licensing legislation, which under the proposed [ACT] laws would need to be published within one working day of the suspension occurring,'' Mr Corbell said.
''If a new company is formed it is a new legal entity and will require a new licence to offer a construction service in the ACT.''
The minister has just released a package of measures to increase penalties for builders who breach the Building Act, and the publication of more comprehensive information about construction licences on a website. Applicants for the three main building license classes - A, B and C - need to have at least two years' full time ''relevant practical building work experience''.
A Class builders - who can put up structures of more than three storeys - must have a relevant bachelor's degree or graduate qualification, while B Class builders need at least a diploma or equivalent.
David Howarth founded Blackett Homes 33 years ago and backed a review, but said the current run of ACT building company insolvencies was not a new phenomenon. ''We have waves of these guys. I remember 20 years ago - one [builder] had three companies and they all went broke,'' Mr Howarth said.
