Professionals Riverstone 
If you’ve been looking through your socials or keeping an eye on the news, there’s one common theme running across a headline or two and it’s that of the impending doom and gloom for the building industry as we know it.
Whilst catchy, fear mongering titles garner the attention of curious buyers and those already invested, is it all doom and gloom? What does this mean for you if you’re planning to build, in the process of construction or weighing up the decision between buying an established home or building?
The reality of it is, most, if not all of these articles do in fact have substance and point to critical points of concern and a major catalyst for the issues now coming to light actually started in the middle of 2020 with the $25,000 building grant being implemented to stimulate the economy. The drawback in hindsight is many other forces would combine to create a Perfect Storm as buyers and builders signed fixed price contracts with little to no escalation clauses for variation cost. Fires, floods, shipping cost, material shortages, skilled labour shortages, inflation and now interest rate rises have combined leaving many of the builders wearing the additional cost on an already tightened margin.
Here’s a few tips to help you if you’re currently in the process or looking to build your home.
1) Do your research!
Builder’s insurance policies can cover upto a certain amount so if they unfortunately succumb to these forces, the insurance will cover the cost for another builder to finish the job. It’s important to note, there is a limit to the amount of insurance that can be covered so do your due-diligence as to whether the cover is sufficient to cover your cost.
Also note, the lengthy delays this can add should this arise and factor what this would mean to your situation.
2) If you’re in the construction phase, its important only pay the progress payments once and only the work has been inspected and completed.
3) Have your conveyance/solicitor really check through the contract with a fine tooth comb as they say to make sure you’ve looked at every angle from potentially further rising cost’s and or liabilities if something arises.
4) For those already in the construction phase with a builder requesting additional fees, speak to your solicitor or conveyancer to know what your rights are firstly but it’s important to note once you’ve obtained the relevant information, if your builder is in dire straights with the surging cost, forking out additional fees may very well save a small Aussie builder’s business as they try and wear these outside cost but also, could save you from extended, alternative living arrangements.
Written by Glenn Hagan
