Canberra's developers say a crackdown on company directors wrongly targets the top of the food chain. But the responsible minister has hit back, saying "the fish rots from the head" and the Government will push on with its plan to ban "dodgy" developers.

Key points: The ACT Government wants laws that could ban "dodgy developers" from the construction industry

The ACT Government wants laws that could ban "dodgy developers" from the construction industry Company directors say a building quality crackdown should be focusing on workers closer to the construction site

Company directors say a building quality crackdown should be focusing on workers closer to the construction site They say the Government's "dodgy" label is offensive to developers

Some of Canberra's largest property developers have suggested the ACT Government should stop hassling head office and get out on the construction site if it wants to improve building quality.

The criticism has come in response to proposed laws designed to tackle "dodgy" property developers escaping accountability for poor quality work.

Some of the more contentious proposals include a yet-to-be-developed licensing scheme for property developers — the first of its kind in Australia — and laws to make directors liable for penalties and rectification orders, even if their company goes under.

'Misdirected' to chase top of food chain

The crackdown has left many of Canberra's property developers perplexed and frustrated.

Barry Morris, the director of the Morris Property Group, argued developers were not to blame for problems around building quality.

"The ACT Government is going the wrong way on the food chain," he said.

"They're going up the food chain to developers, but, in fact, I think they should be going the other direction down the food chain to consultants, designers, all the engineering disciplines."

Mr Morris argued the current approach misunderstood how construction jobs worked, and the relationships held between developers, builders and subcontractors.

He said it was unfair to require developers to carry the risk and be held accountable for the actions of other licensed professionals.

'Elara' apartment owners in Bruce unsuccessfully attempted to chase the complex's developer to pay a $19m defects bill in one high-profile building quality incident in Canberra. ( Supplied )

"We don't have an employee-employer relationship," he said.

"We have an arm's-length, third-party contract with a builder, and the builder then has arm's-length contracts with designers and subcontractors.

"So I don't agree that it's as simple as saying: 'Because the developer is ultimately the person sitting on top of that pile that he has the knowledge or the expertise to be responsible'."

Developers say 'dodgy' label is offensive

A local inquiry into building quality has heard from the industry that some builders and subcontractors feel impossible time and financial pressures were placed on them to complete work, and that they sometimes cut corners as a consequence.

But a spokeswoman for development company Doma Group said that was not realistic.

"The notion that a developer can force a builder to cut corners to save costs is foreign to us, as the builders we use would rightly reject any such pressure," she said.

"The call to license developers and make them responsible for building defects to address building quality issues is completely misdirected and disingenuous."

Mr Morris, who was recently taken to court by the ACT Government over a property in Kingston, also expressed his disdain for the Government's use of the term "dodgy developers".

In October the ACT Government intervened to install props in a Morris Group building, fearing it would collapse, and has now taken director Barry Morris to court to pay the bill. ( ABC News )

The label has appeared in a number of official government campaigns around the new laws, including the press release announcing the licensing scheme.

"We take offence that the minister would be calling them 'dodgy developers'," he said.

"The inference is that every developer is dodgy."

Government says building problems start with developers

The ACT Government is expected to continue its push to legislate for further financial accountability for property developers this week.

Building Quality Minister Gordon Ramsay said they aimed to hold all levels of the construction industry accountable, from the top down.

"Using the old adage 'the fish rots from the head down', we want to look at the entire process and not just some parts of it," he said.

"There are important roles that property developers play in ensuring the quality of building that we have."

A Government ad spruiking its crackdown on "dodgy developers". ( Supplied )

Mr Ramsay rejected suggestions the new regulations might drive high-quality, established developers out of the ACT due to increased risk and over-regulation.

"For developers who are doing the right thing, they've got nothing to fear," he said.

"For people who are operating transparently, ethically, making sure that there aren't inappropriate time pressures or financial pressures on builders or others, then there is nothing for them to fear."

The licensing scheme is still in its infancy, with consultation planned to work out exactly how it will be implemented over the next twelve months.