PCI numbers are well down for the month of April by about 36%, showing that the construction sector has fallen to its lowest level since 2005 (seasonally adjusted)‼️
PCI = Performance of Construction Index (produced by Ai Group and HIA)
Without a significant uptick in Government or large enterprise appetite to fund infrastructure projects 🏗, I can’t imagine the sector growing before the next round of QLD QBCC net tangible asset (NTA) minimum financial requirements (MFR) ⚖️ are due in December 2020.
This will be a big test of QBCC policy, and whether some industry players will be deemed too big to fail/lose their licence.
Don’t forget, MFR is not just an annual test.
There are numerous other reasons for when you must report your MFR, like:
* NTA falls by more than between 20-30%
* where maximum revenue requires adjustment because your NTA has fallen
A sensible solution needs to be found, otherwise we might lose a generation of small business builders to a licencing regime that only works in the good times.