Enough powers: Commissioner

He said the commission had enough powers now, despite calls from building companies, consumers and property lawyers to change the way it operates.

"Building companies are required to confirm their financial viability to be registered and each time they are re-registered, typically every three years," he said.

"The Building Commission has comprehensive powers to investigate breaches of building legislation, including failure to notify financial difficulty.

"However, the primary role in regulating corporations and insolvent trading lies with the Australian Securities and Investment Commission (ASIC)."

Mr Gow said Benchmark Homes were obliged to tell the Commission if they were in financial difficulty.

"We can and do investigate builder conduct, including when builders get into financial difficulty," he said. "The Building Commission cannot run builders" affairs and cannot manage the relationship between individual builders and consumers.

"A building company is required under State builder registration laws to notify the Building Services Board through the Building Commission if there is a change in its eligibility to be registered or if it is unable to pay its debts when and if they fall due."