Application overview
Builder protect your project no matter the situation
Tailored oversight and control to suit every scenario
IPEX
Secure your projects
IPEX allows developers to tailor the level of security/control as they deem necessary – this is typically influenced by the specifics of the current project situation and/or their relationship with the builder.
Transparency and oversight can be varied greatly, and builder payment can also be directly linked to rightful payment of all subcontractors and suppliers.
As you’d expect, builders on distressed projects tend to be managed with higher levels of oversight/control, while those willingly accepting IPEX terms on a new project tend to get more ‘builder-friendly’ set-ups.
IPEX project applications
Prevention from day 1
Protect against future builders’ cashflow issues
- Guard against the potential impact of other, less-feasible developments linked to your builder
- Additional protection when working with a builder for the first time or builder is ‘stepping up’ a level
- Provide lender comfort should builder due diligence has raised minor red flags
- Provide lender comfort on developer-builder projects
Mid-project implementations
Guide ‘Troubled’ projects to completion safley
- ‘Controlled’ payments to assist your builder with funding supplier deposits
- ‘Ring-fence’ additional payments outside of the
contract to ensure they’re spent on your project - Move forward with the builder despite substantiated instances of non/delayed payment of subcontractors or suppliers
Regardless of the application, IPEX does not change the agreement between a developer and their builder, it just provides the developer with enough transparency and oversight to confirm that the contract is being honoured.
Application overview
IPEX scenario
IPEX as a preventative measure
Trusted builder partner / Strong delivery track record
First time working with a builder / Builder stepping up a level / Due diligence concerns
Cost plus contracts, including construction management contracts/large domestic residential
IPEX as mid project
Upfront head contract payments cashflow support for builders
Builder in financial distress / non-payment of subcontractors and suppliers
Provisional sums selective transparency by trade
Under IPEX
Developer protections
- All progress payments are ring-fenced to the project and can only be used to pay approved subcontractors and suppliers on your project
- All subcontractors and suppliers are subject to full KYC/AML checks and have account details independently verified before they are eligible for payment. BSB and Account Numbers are then cross-referenced with the payment file the builder submits – payment is blocked if details don’t match
- The developer can view (and if need be, approve of) any subcontractors and suppliers that are linked to the project account before they are eligible for payment
- The developer can confirm which subcontractors and suppliers have been paid, when and how much* before approving additional claims, reducing risk of misappropriation and making ‘cost to complete’ reports far more reliable
- In cases where risk is higher or greater control is deemed necessary, the developer can ‘isolate’ a specific subcontractor or supplier for targeted payment
- Certain ‘key trades’ may be set to ‘open book’ to satisfy oversight requirements including the payment of supplier deposits or similar, whilst other contract/payment values can remain confidential (payments made under standard view are expressed as a percentage of contract value which is sufficient to ensure amounts paid are in line with work performed onsite)
- If required, the developer may elect to link the payment of builders’ entitlements to subcontractor/supplier payments – an active incentive for the builder to distribute funds quickly and in full
* Standard developer portal view shows payment as % of contract value. Open book developer portal view shows subcontract/payment values.
$1B+ in funds protected and counting
Testimonials
What our partners say
