The QS certifies progress, not payment Cost to Complete remains the fundamental metric in construction funding risk reporting, but it has one structural limitation – it recognises costs when progress is certified & assumes that payment to subcontractors & suppliers follows. Of course, it often doesn’t. Although the QS assessment sits at the centre of […]
Construction payment ‘protections’ detect failure after it has occurred; that’s why prevention will always fall to those with capital at risk… Construction is a notoriously challenging sector when it comes to payment, so much so that every state has their own specific legislation aimed at making payments more reliable—is there another industry that government has felt compelled to […]
New look, new features – includes a sneak peak at the next wave of upgrades
Whilst lenders have traditionally shied away from the developer-builder model, it remains extremely difficult to get a project off the ground with a third-party builder in many sections of the market – this has forced lenders to re-consider their position. But although many are now warming to the idea of funding developer-builder projects, the underlying […]
The construction industry has embraced drone surveys, 3D modelling and AI project management, but still releases millions based on 19th century verification methods. While almost every other aspect of construction has been digitised, payment verification remains stuck in the era of handshake agreements. More than 2800 construction companies went into insolvency in 2024 alone, yet […]
When a commercial builder enters administration, headlines naturally gravitate towards what they might owe, before attention turns to why they failed. And while the specific circumstances may vary, each collapse is inevitably chalked up to a version of “difficult market conditions beyond the builder’s control.” But there’s a third element that’s rarely discussed. Even if […]
Leading Commercial Builder Balmain & 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 […]
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 […]
A key challenge for property fund managers and their developmentpartners is that, even with best-practice financial checks and projectmonitoring processes, they have no way of confirming how much (if any)of each progress payment has been distributed to the subcontractors andsuppliers that formed part of the claim. This ‘blind spot’ is of particular concern given widespread […]
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 […]
