I think the problem with Aussie builders, at least the small guys, is they are grossly under-capitalised for the business they are in. Then there is the practice of fixed price contracts. Nothing wrong with fixed price for the labour but for materials, especially with the inflation pressures that have been around for 12 months or more. So to an extent it's an own goal by the builders. Need to get away from fixed-price at least on the material side.
A solution holding any funds paid in a trust accounts as suggested by one of the other responses doesn't really address this problem in my opinion. Protects the buyer but doesn't fix the underlying problem of fixed price contracts.
dkit
Last edited by dkit:
ps: what has this got to do with scommo?07/06/23
