IPEX has (somewhat unintentionally) become the ‘go-to’ solution for managing tricky projects through to completion (distressed projects currently make up ~30% of all active IPEX projects) but the truth is, we’d rather the project not get into trouble in the first place. By the time payment issues are identified: Whilst we can ensure that any […]
What if Your Builders Financial Position Changes After You Appoint Them? It’s been widely reported that lenders (both bank and non-bank) have stepped up financial due diligence in response to heightened construction costs and the ensuing builder insolvency risk. It makes sense but unfortunately, it’s no guarantee they (or those they are lending to) will […]
Whilst lenders have traditionally shied away from the developer-builder model, it is becoming increasingly difficult to get a project off the ground with a third-party builder in some sections of the market – this has forced lenders to reconsider their position. But although many lenders are now warming to the idea of funding developer-builder projects, […]
Leading Commercial Builder Balmain and Co Weighs In… For every developer that is mandating the use of IPEX on their projects, there is another that would like the additional protection, but doesn’t think that their builder would agree. Is it unreasonable to ask a builder to operate under the condition that they can ‘only’ access […]
The Check That Helps Developers ‘Step In’ Before Their Builder Enters Administration ‘Step In’ Rights Are Great In Theory – But Will They Protect You In Practice? It’s typical for developers to incorporate ‘step in’ rights into their head contract, giving them the right to pay subcontractors and suppliers directly should the builder fail to […]
Can You Pick A False Stat Dec From A True One? Despite being one of the core requirements for the release of funds by developers and lenders (not to mention, a legal document), the ‘stat dec’ has become something of a ‘tick and flick’ item in practice, carrying extraordinarily little weight. But this is not […]
You can insure yourself against many risks when it comes to property development, but builder insolvency is not one of them. Recent, high-profile insolvencies have made many developers and lenders nervous, leading to ever-increasing scrutiny on builder finances. Whilst no developer would appoint a builder they believe is at risk of going under, many have […]
No One Wants Their Builder To Go Under, But There Are As Many Risks To Helping As There Are To Holding Firm Whilst ideally used as a preventative tool to test prospective builders’ financial position before contract award and then ring-fence funds once the construction begins, ~30% of the time, IPEX is engaged mid-project – […]
When a builder submits a progress claim, they are not only asking to be reimbursed for costs incurred by their business, but also on behalf of the subcontractors and suppliers that have performed work on and/or provided/ paid for materials for the project with their own cash- only a portion of the progress payment is […]
In the construction industry, builder transparency is crucial for establishing trust and ensuring project success. IPEX for builders provides tools and strategies to achieve this transparency. As developers’ use of IPEX becomes more widespread and ultimately, a requirement from lenders, it’s only a matter of time before are asked to work under IPEX? And while […]
