You wouldn’t dream of starting a project without insurance against property damage, bad weather or theft, but developers remain unprotected against one of the biggest risks they face: builder insolvency. Only The Builder Knows Their True Financial Position; Why Should Developers and Lenders Be Forced To Guess? So, you can (and should) keep auditing balance […]
You wouldn’t dream of starting a project without insurance against property damage, bad weather or theft, but developers remain unprotected against one of the biggest risks they face: builder insolvency. 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 […]
Original article posted 10th December 2023, The Australian Business Review. Major developers and businesses are taking extra measures to reduce the risk of financial loss and exposure to a soaring number of builders going bust every day across Australia. ASX-listed BlueScope and real estate manager Frasers Property have moved to protect hundreds of millions of […]
How do You Get Your Builder to Agree to Transparent and Secure Payments Conditions Hopefully, most of you have heard of IPEX by now (for those who haven’t, you can read a little summary here). Since our launch, we’ve met with hundreds of developers and lenders involved in residential, industrial, infrastructure and retail developments with […]
The recent wave of high-profile builder insolvencies is further proof that the construction industry’s commercial builder payment model is broken. Unfortunately, it’s also made many developers and lenders nervous. Builders That Can Ease Developer/Lender Fears Have A Huge Advantage in any Tender If you haven’t already, it’s highly likely that you’ll soon be asked to […]
There’s no doubt that current market conditions have placed significant financial stress on builders; the Australian Constructors Association is reporting that building firms are entering administration at twice the rate of other industries with over 50% of large contractors currently fitting the technical definition for insolvency. Whilst we certainly empathise with builders given what has […]
Several Governments have decided to step in with specific legislation related to trust accounts intended to protect subcontractor payments. The QLD, NSW & WA Governments have all introduced rules governing how builders are to manage progress payments and/or retention money held against subcontractors. We’ve looked at the various legislations introduced to date, both in principle & in practice, so we thought we’d provide an assessment of each from intent to adoption & outcomes. We also provide some insight into our ongoing interactions with the various industry bodies that have introduced these policies/processes as well as those set to influence future frameworks.
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 consultants, subcontractors and suppliers that have performed work on and/or provided materials for the project – only a portion of the progress payment is actually the builders money. […]
The recent wave of high-profile builder insolvencies is further proof of what many have been saying for some time: the construction industry’s commercial payment model is broken. But while there is no shortage of people pointing out the inherent issues with the current process, putting forward a viable alternative appears to be far more challenging. […]
Whether the result of material/labour costs rising significantly on a fixed price contract or deliberate underquoting to win a tender, many Builders are now finding themselves in a position where they are no longer able to complete projects for the amount agreed. You can say no, but where does that leave you? It’s a tricky […]
