Even as hundreds of companies go bust every month, no action appears to be likely with regard to insolvency within Australia's construction sector in the short term as the government has not provided a response to recommendations for significant reform to deal with the issue.

With figures from the Australian Securities and Investments Commission showing that 369 building companies went into liquidation or external administration in the first three months of this year – 36 more than for the same period last year – insolvency within the Australian construction sector appears to be rife. Yet despite…