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 […]
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 […]
With widespread builder liquidity issues & the threat of insolvency constantly looming, it’s probably no surprise that IPEX has proven to be a very popular tool amongst developers, lenders & project managers. The ability to cross-check subcontractor payments against the QS assessment & identify non-payment before approving further claims removes a major development risk. But […]
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 […]
Builders Can Now Access Their Entitlements Immediately (But Still Can’t Touch Anyone Else’s) IPEX has now released a third option for the payment of builder entitlements, removing the last commercially valid point of contention (without compromising the security of subcontractor and supplier entitlements). Until now, builders either received an agreed percentage of any subcontractor/supplier payments […]
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 […]
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 […]
