De Luca Corp managing director Nic De Luca. Picture: Mark Calleja
De Luca Corp managing director Nic De Luca. Picture: Mark Calleja

De Luca gets licence reinstated

CONSTRUCTION group De Luca Corporation has had its licence reinstated by the building regulator.

The Queensland Building and Construction Commission on Friday suspended De Luca's building licence.

In a statement on Monday, the QBCC said it had lifted the licence suspension after De Luca Corp restructured its balance sheet to meet the regulator's financial requirements.

The regulator said that over the weekend, management of De Luca Corp took a number of steps to implement an $8 million improvement of its balance sheet, which brings the company to a positive net asset position of $4.5 million.

QBCC Commissioner Brett Bassett said it was pleasing the company was now operating within the law.

"The QBCC worked closely with the company over the weekend, and during this process the company has now decided to include a number of significant related-entity debtor amounts in its balance sheet, that were previously excluded," Mr Bassett said.

"This is a positive result and means the company's construction work is supported by an adequate asset base."

De Luca managing director, Nic De Luca, said he was shocked the company's building licence was suspended late last Friday evening but relieved it had been now fully reinstated so quickly.

"We are appreciative to the QBCC for working with our team over the weekend allowing us to resolve this misunderstanding," he said.

"We simply needed to provide some additional clarification around the audited financials provided to the QBCC some weeks prior.

"As at 10.40 am this morning, we were back to work without having to make any structural or financial amendments to the business."

He said in 25 years of operation, De Luca Corp has never had an issue with its licence.

"I'm pleased this compliance matter is now behind us and it's business as usual."

Mr Bassett said the majority of licensees understand the financial requirements and work with their accountants to ensure these are met.

"However, we will not hesitate to take regulatory action when companies are outside of the mandatory requirements.

"It's pleasing that De Luca Corporation Pty Ltd has taken these steps to meet the law.

"My message to other licensees is clear - get your books in order or face regulatory action.

When it suspended its licence on Friday, the QBCC said De Luca was a large value licensee with an annual turnover of more than $230 million but it currently had a net asset position of negative $3.2 million.

De Luca has handled some major south-east Queensland commercial and industrial projects over recent years, including workat Brisbane Airport and for retailer Bunnings.

It is currently building a Hitachi Construction Machinery Australia warehouse on a 30,000 square metre site at Wacol.