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 […]
We’re all familiar with the process; given that Developers have practically zero visibility or control over how project funds are distributed once released to their Builder, they will ask that a statutory declaration or ‘stat dec’ be submitted with any request for payment. Can you really trust a ‘stat dec’? Whilst the logic behind the […]
You can insure yourself against many risks when it comes to property development, but builder insolvency is not one of them. Nevertheless, smart developers are always taking steps to reduce their exposure, exclusively engaging builders with a proven track record and conducting detailed financial due diligence checks before awarding the contract. Yet despite such scrutiny, […]
The construction process entails different stages, regardless of the type of project. Construction firms need to keep their whole supply chain in check, in which their cash flow is pivotal to a project’s success. Spending money for project-related expenses is no joke; many contractors don’t get paid until the job is complete. This is where […]
Today, the Building Industry Fairness (Security of Payment) Act 2017 (BIF Act) ensures those in the building and construction industry get paid in full. It also helps eliminate delays that can be costly and stops contractors and principals from holding up or reducing payments owed. Depending on the time, size, and complexity of a construction […]
