The Queensland Building and Construction Commission has suspended the building licence of major Cairns developer Kenfrost Homes.
It said the move came after Kenfrost failed to meet the minimum financial requirements (MFR).
The company had previously provided adjustments to its working capital but failed to demonstrate the legal financial requirements in order to satisfy Queensland’s MFR laws, a QBCC spokesman said.
Kenfrost representative Adam Gowlett said the company was confident it could work collaboratively with the QBCC on any perceived technical issues as it held a strong financial position, had no outstanding creditors, had a strong asset position and had operated profitably for over 20 years.
“Kenfrost is unique in that it builds on land the company owns,” he said.
“Homebuyers only pay for the home at settlement and when they are happy with their new home. Kenfrost does not force buyers to settle if their circumstances change or if they are not happy.
“Kenfrost has a number of developments currently under way in Cairns and finishes each estate and every home to a high standard with landscaped parks and gardens.
“Kenfrost pays all of its subcontractors fortnightly which is more frequently and more timely than is required by the new legislation. We look forward to getting our subbies and supplier back to work as soon as possible.”
The company has 21 days from Wednesday to take action which will bring them into compliance with the minimum financial requirements, otherwise they risk having their licence cancelled.
At the time of suspension, the QBCC had no monies-owed complaints against this company.