Building industry getting what it deserves. Been ripping ppl off for years, especially developers who create company’s for each project then declare bankruptcy to avoid paying creditors.
Well at least everyone who was getting paid for the last 15 years in the construction industry have been earning wages way higher than they deserve. They can eat some of the fat they’ve taken enough already.
As someone who suffered under Watermark Homes in QLD, 6 years later, Im still suffering with dodgy building. My house is not livable nor is it sellable due to failing lots of building inspections. Im at financial wits ends. My heart goes out to all those people who are in limbo right now with half a house built and a mortgage to pay. 😥
The building industry requires significant reform. Most of us are completely fed up with builders/ contractors who don’t show up…..when they do it’s the sucking in of breath “this is an expensive job” rubbish. There needs to be a bit of a revolution here. Tradies have been living the high life and ripping us off blind for years. The moment the industry downturns….oh we’re broke. How about during this downturn, you show up on time, do a full days work, don’t make promises you can’t keep and treat the paying customer like they’re the boss. Sounds nuts right?
That is the catch, once fixed price contracts are removed the builder gains all rights and the buyer looses there's. These builders will be back in business the day after going bankrupt
Clients with intelligence enough to write completion clauses into their contracts are just fine…. Never ever sign a contract without completion dates! If the builder breaches the contract you won’t lose everything
An important fact that was left out of the story, is that the 4000 odd companies in liquidation last financial year is still around 50% of the average per year over the past 10 years, so 4000 is not that bad.
Many builders will be bankrupt by fixed term contracts that they cannot honour. They will close up shop and start up again under a different company name and then build the houses for the next person that can pay a higher price. Saw this when we bought our first home…the interest rate had risen to around 17% back then and we had a new baby 😬 … Very very sad but it will only get worse when China’s economy finally implodes. Gird your loins everyone it’s only going to get worse. Been there got the threadbare T-shirt to prove it.
So?what is the solution then? The PM should stop spending so much money and time travel overseas to meet a bunch of so called leaders to talk rubbish. There are so much problem here to be solved.
Poor Cashflow Management is the real reason behind the fall of these residential construction companies. Most of the debts owed are pre covid debts (trades, materials etc). Its just an excuse for the builder to feel like its not their fault when it really is unethical and immoral transaction. Knowing you cant even lay a slab, finish the frame and still taking peoples hard earned money is just a testament to the construction industries attitudes to "toning the key " to your new home. A shift in economic climate shows how poorly these business manage the stage payments of the builds. COVID, Supply issues are all part of the business all these volume builders are nothing but greedy and immoral.
How does this happen? is it a lack of construction workers? all the equipment and parts they need to build? Cost of insurance and all the expenses to run these business’s? What is it? i guess we can’t be shocked that after Covid this is happening in every industry. I don’t know how so many businesses would’ve survived or be able to start over as we are still going through this pandemic! There just needs to be more support for businesses, families and anyone who has really suffered the most from this once in a century level tragedy
Seriously it’s karma on them for being greedy I don’t feel sorry for greedy people now they know what it’s like for poor people who suffer every day so they don’t deserve my sorrow
This is not a healthy society based solely on economics. A construction worker takes his life every two days? Outrageous. Governments have a lot to answer for here where your sole worth is based on economics. People work hard and many never get an opportunity to have a "good" life,is it any wonder people are always on the grog. Something needs to change about the way governments are all about money and taxes. Not fair for the common people.
I'm sure they will blame russia 🇷🇺 🙄 for this... Not the excessive stimulus and diluting the money supply as well as driving interest rates to be 0.10% artificially screwing the system.
A construction work takes their lives every two days. Isn't that a pathetic closing of a news report. Well where is their welfare and wellbeing checks done. The stress in carpentry is so demanding that basic geometry from carpenter's is non exist. They can't work out angles They can't do Pythagoras They don't know types of wood They don't teach them what purpose of tools are designed for. Too much stress too little time. As if our society has gone mad fast dash and yet accumulation of faults.
That's because the quoting wasn't thought out ahead.remember cheapest quote doesn't always mean proper price.builders out there walk away if your client is trying to push down the price.can only get away with using cheap fittings and cutting costs for so long.quoting too cheap to get the job, looking for trouble.be honest and up front with client.there is a web sight to see when materials are going up in price.add extra on to the build in the contract and if you don't need the extra coin,then win win for both sides.dont take on a build if you are trying to do it too cheap.building materials have gone through the roof pardon the pun.goverment contracts take for ever to pay up.with first home buyers grant,lots of building company's signed up to get the grants job and fixed the price in contract.then materials went up in price and shortage of materials " "then nick up"trying to build cheap and quick.like how governments say let's build more housing.with what?? Sticks little pigs,build it with sticks.
The irony is that if you thought you had certainty with a fixed price contract you didn't and if you want the place finished you will have to pay much much more. But you could in aggregate have engaged with the builder to meet escalated costs so that he could build your home. Game theory with co-operation versus non-cooperation. A whole intellectual peasant class economically devastated because they do not get it.
The biggest issue is labor costs, ive seen within 3 years it going from $30-40 a hour to over $150 and more with some tradies making 1k a day building fences etc because theres always someone to say yes i'll pay, with all the troubles in the world today Australia should be opening up for easy immigration of skilled workers by the 10's of thousands but as a Nation the whole visa process is ridiculous. Our parents often came over on boats in the 40's and 50's and were welcomed with open arms. We could be taking in all the ukraine capable skilled workers by the 10's of thousands but we dont despite critical shortages in most industrys.
Kinda makes God rather petty if he's willing to turn his back on you because of the state of the economy don't you think?. Let's see if humanity will be there for him if Heaven ever gets foreclosed on by the banks.
