Funding changes bring more scrutiny on Builders
Financial institutions recent tightening of funding has provided increased hurdles for developers. One important step to get a favorable outcome from your institution is to ensure you have a builder that is either known to them or easily meets the requirements they have to approve them. You need to ensure they have completed work of greater and similar value, are in good financial health, have adequate HOW if required, have shown steady growth and have a track record of paying bills on time including subcontractors.
The building sector does have a high rate of insolvency so due diligence on a builder is very important. Not only at the start of the project with insolvency and tribunal checks being some of the items to tick off but also during the project it is import to continue monitoring performance. This would include checking that subcontractors are getting paid. Due diligence should not stop when you sign a contract.
Selecting a builder with excellent past performance in your projects niche market is crucial. This is even more important as lending tightens and building activity slows. There will be builders that go under and you need to use every resource to avoid that situation.
Builder Solutions has accumulated a wealth of knowledge on construction companies to help developers make the most informed decisions. This information is available by consulting us directly, at no charge.
Builder Solutions in Numbers
80 Projects we helped builders with last financial year
223 Builders in our network, the industries best and brightest
10 Years of industry experience and monitoring builder performance
100 Percentage of our builders who survived the GFC
MARKET INSIGHT – Build Costs
We are happy to offer insight on building costs we are currently seeing in the market. We can provide guide prices, examples of similar builds or direct connection to builders whom you can consult.
Contact us on 1300 651 512 or EMAIL