Options for hire businesses during ongoing construction industry closures
Todd Gammel, Partner – Advisory at HLB Mann Judd Advisory and Accounting shares his observations about the recent high-profile building company closures of Probuild and Condev. HLB Mann Judd is an HRIA industry partner.
Following recent construction company collapses, it appears from discussions with many industry associations, major subcontractors, and other stakeholders, that there are inherent issues that need to be examined but they need not be terminal.
Concerns about supply chains and increasing costs that make fixed price contracts uncommercial are well documented and a remedy 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 have arisen previously, but this does require trust and transparency.
Consultation 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, creating greater impact and further collapses.
Working with our clients on managed completion of projects, we understand the difficulties, particularly the personal toll that confronts business owners during times of uncertainty.
There are cost-effective ways to get construction businesses through this process, save jobs and keep projects moving. The finance industry has always been supportive of those having a go and trying to do the right thing.
Help is available to assist in confirming the reality and bringing options (some new and some old) forward to keep the industry that accounts for 30 percent of the building economy, moving forward.
Please reach out to your industry association for help in understanding your company’s position and options or call HLB Mann Judd to discuss your situation, on 02 9020 4285. Explore their services at www.hlb.com.au.
Related HRIA news: Probuild collapse renews HRIA push for law change.