FBR General Discussion, page-5635

I was talking to a recently retired builder.He spent career initially building for people on their land and then progressed to buy land , build high quality homes and sell.
Never ever employed trades.Subcontracted to a select trades who he developed relationships and had a level of reliability.
He knows of a very wealthy builder .This builder buys big lots of land , develops and builds houses and then sells.Employs his own trades.Most builders could not afford to do that.

When asked about the recent trouble in building industry , his opinion ,

• Covid big impact on materials cost and supply
• Trades access and scarcity , highest bidder
• Govt , makes it easier to not work
• Covid govt building incentives resulted in over commitments unable to deliver on contracts
• Contract prices locked in , delays and rising costs of labour and materials during contract period.

Makes you wonder if the future building industry is about building at scale like D.R Horton and Lennar.
FBR is all about scale , maybe perfect partner.