You wouldn’t dream of starting a project without insurance against property damage, bad weather or theft, but most developers remain unprotected against one of the biggest risks they face: builder insolvency.

THE DUE DILIGENCE & STAT DEC PROCESSES ARE LEAVING DEVELOPERS EXPOSED

Industry-standard checks & balances fail to provide developers with certainty over a builders’ financial position or, how they’re using project funds:

• Due diligence checks are historical, representative of a specific ‘point in time’ only
• Key information relied upon to assess a builders’ financial health is supplied by the builder: why would a distressed builder share information likely to hurt their chances of winning the contract?
• Your builders’ financial position can change very quickly but there is no ‘ongoing DD’: they’ll be juggling multiple existing projects & signing/commencing new contracts during your build – the likelihood that all will be profitable is slim, but you’ll be in the dark.
• A signed ‘stat dec’ offers no assurance that subcontractors or suppliers on your project have been paid: what’s preventing them from using your funds to cover shortfalls on another project if they get into trouble?

IPEX HELPS DEVLEOPERS CLOSE DD & ‘STAT DEC’ GAPS

Book a 20 min IPEX demonstration & we’ll explain how developers & lenders are now:

1. ‘testing’ builder financial claims to avoid engaging a builder that is already in trouble AND
2. protecting themselves (& their project) against any future builder cash flow issues by preventing progress payments from being used to cashflow another developers’ project

*Terms & Conditions: Developers who register for the free IPEX demonstration by May 31 will receive 25% off the developer fees on their first IPEX project. Discount value capped at $2,500 AUD. IPEX contract must be signed by May 31, 2025.