Building Boom and Builders going Bust

Here we go again. The head hunters have emerged, companies cannot retain and hire good staff, material prices are through the roof and subbies are ordering jet skis (well maybe a few).

The Australian construction sector is going gang busters and the inevitable will happen – good, established builders and subcontractors will and are going broke. Some blame ridiculous low profit margins, some blame “greedy” subcontractors, some blame Covid. The truth is we need to look at ourselves. We determine the submitted tender, we put pressure on shaky subcontractors, we convince ourselves we can deliver on time and on budget.

Bottom line is many builders simply cannot manage risk, we accept draconian contract terms, procure inefficiently and blame everyone else for out predetermined fate.

Just say no and go fishing

Published by

Gerry Keating

Construction Professional

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