Another Perth building company has collapsed amid the growing crisis in the industry.

The construction union is calling for builders to prove their financial health in order to stay registered in the industry to help combat the ongoing crisis.

CFMEU State Secretary Mick Buchan told 6PR Afternoons the industry needs urgent reform.

“The system is broken in the construction industry,” said Mr Buchan.

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“Dramatic changes need to happen and they need to happen ASAP.”