Following recent construction collapses it appears from discussions with many industry associations, major subcontractors and other stakeholder that there inherent issues that need to be treated but they need not be terminal.

The inherent issues on supply chains and increasing costs that make fixed price contracts uncommercial are well documented and treatment is needed for projects and key parties to survive.

The treatment for these issues requires a rational, transparent and common sense discussion with all parties on projects, as similar issues arose previously, but this does require trust and transparency. This can lead to understanding of the movement in timing and costs for the project and consideration of adjustment to contracts to minimise losses by parties - or projects may stop that could create greater impact and further collapses.

Working with our clients and managed completion of projects we understand the difficulties particularly the personal toll that confronts owners of businesses.

There are cost effective ways to get construction businesses through this process, save jobs and keep projects moving, the industry has always been supportive of those having a go and trying to the right thing

There are ways of getting a little help to assist in confirming the reality and bring options (some new and some old) forward to keep the industry that accounts for 30% of the economy building moving forward.

Please reach out to your industry association for help, understand your position and options or give the team at HLB Mann Judd a call on 02 9020 4285 to discuss.

Todd Gammel
Partner – Advisory
HLB Mann Judd