It distresses me to even contemplate how many businesses operating in the construction industry will eventually succumb to some form of insolvency as a result of the coronavirus (COVID-19) crisis (event).

These are extraordinary times and as such, it cannot be ‘business as usual’ in terms of how the construction industry is regulated in terms of insolvency.

In an article in the Financial Review dated 17 March 2020, it is stated:

This is a quote from a 2015 report by the Senate Economics References Committee into insolvency in the Australian construction industry (chapter 11.4).

It is fair to say that my initial reading of the Building Industry Fairness (Security of Payment) Act 2017 (BIFA) a little over 12 months ago left me shocked in terms of the sheer scale and magnitude of the reforms and changes proposed to be imposed on the industry.

As I establish below, over the course of the past decade, there has been a failure to make any inroads in tackling the scourge of insolvency in the industry. I believe that if nothing changes, this COVID -19 induced recession has the potential to magnify the extent of failings in this regard. Quite simply, for the sake of all of the currently financially distressed businesses in the industry, there must be an urgent resetting of measures designed to mitigate, as much as possible, the widespread collapse of businesses.