A common comment I hear from many in the construction industry is that it is a small world in this industry. ‘We know most that are operating in the industry or will know them through a contact I know’. I am always surprised when I hear these comments because my experience in the market is completely different.
We are always on the phone or meeting with people in the industry, builders, developers, architects down to tradies. It is true there are a lot of people connected in the industry which helps provide information valuable to each. However, from our consistent contact in the market this is what I see:
· Loads of unknown builders performing extremely well
· New builders and developers consistently entering the market
· Builders and developers changing their target markets constantly
· Builders and developers changing their regional focus
I repeatedly meet with developers who believe the pool of builders for their job is quite limited. Once we get an understanding of their project and make some recommendations, 80% of the builders that we put forward the developer does not know. They are quality builders that they otherwise would have not considered.
There are so many builders out there that it simply is not possible to know them all. Our goal is to know the best in each market whether that be residential, commercial, retirement, retail, fit-out, hotels, civil, remediation and so on. Within each of these mentioned there are speciality fields that each have their long list of builders, and this is repeated for a particular region!
The strong construction market since the last crash has spawned a large number of new builders and developers. Many also that have grown into entities that are solid competitors to their larger more well-known counterparts above them. There have been some great companies come from this growth that many are not aware of. An example of this is several of our ‘tier 3’ builders who have the performance, experience and balance sheet to competently deliver projects that ‘tier 2’ builders compete for. The advantage being they have more competitive construction costs if a project is on that tier 2-3 cusp.
This is the case all the way down to smaller duplex builders. During the growth, many highly skilled individuals running construction or development for other firms started their own businesses. They have developed into innovative and flexible companies providing quality alternatives to the market. Their visibility is much less than the established companies but many of them are excellent operators here to stay and make their mark. An example of these alternatives are our builders who develop as well. Some offer JV or funding options, allowing a project to start construction sooner through a stronger funding position.
If you think you know them all you may be missing out on a cracking builder.
Give us a call, if you get in touch we can recommend some of these builders.
0450 963 901 [email protected] buildersolutions.com.au