Market conditions continue to place significant strain on builder finances, leading to calls for changes to the way builders are paid. In reality, insolvency concerns will only ever worsen builder liquidity, with all parties holding funds back to protect their own position.

IPEX changes this. Once a developer/lender can be sure that progress payments will reach the subcontractors and suppliers linked to each claim, other builder payment models become possible.

Under IPEX, developers are regularly agreeing to an initial upfront payment to their builder of between 1% and 2.5% of head contract value* for site establishment costs and/or funding certain long lead time material deposits. These payments are allowing builders to lock in material costs early and start the project in a cash positive position.

*Not an IPEX system feature. All contract terms/payment conditions are to be agreed between the developer and builder on a project-by-project basis.