Why Adelaide builders & construction companies are going bust… and what you can do to avoid it happening.

Why Adelaide builders & construction companies are going bust… and what you can do to avoid it happening.

As a structural engineering and project management consulting business, we go into houses both at the beginning of a project, but just as often, to rectify them. And there’s something we’ve observed that needs to be addressed. That is one of the main reasons why building and construction companies aren’t lasting. Projects aren’t getting completed correctly, because there are internal issues that aren’t being addressed.

Who suffers? Everyone. The company, the employees, and most importantly, the customers.


Unpaid invoices are like a time-bomb.

So, what’s actually happening behind closed doors? We’re seeing many companies go bust, leaving unpaid bills behind. These debts are claimable for up to six years. Which means they can be chased long after the project has ended.
Six years is a long time and sooner or later, government agencies and your subcontractors will lodge a collection claim with a debt agency. And, they’ll be able to ask for a lot more than the invoice values.

Builder’s tender projects, presuming they can get away with not paying subcontractors. We know, can you believe it? Unfortunately, it’s a reality with many companies in Adelaide.

No matter what company you run, you cannot depend on not paying subcontractors. Just because they’re not full-time employees, doesn’t mean they should be treated any less. Don’t expose your business to the risk of insolvency or liquidation. And as you know, in a city like Adelaide, word of mouth and reputation is everything.


Focus on improving your internal processes.

Do things right the first time. Start by hiring an experienced project manager and financial advisor to streamline your systems, procedures and, of course, your cash flow. We understand that you’re working with a number of employees, subcontractors, suppliers, and customers.

This makes it all the more important to get all your ducks in a row. This will benefit you, too. You won’t have to worry about any looming debts – a stress that can loom over your head for years. Six, in fact.
Get the right tools and people in place to better cost your projects. Don’t underbid or undersell your services. Usually, this leads to contract disputes, working overtime and losing profit.

Hire help to create a cost estimation procedure with the toolkits to help you do this. Switch to a paperless, cloud system like Xero, instead of using Excel. You never have to worry about losing files.
Talk to the right people and fill in skills gaps. Don’t get by on ‘just’ staying afloat. We understand that your skills and capabilities are in building and construction – not necessarily business operations. So, seek the support that will help maximize the managerial aspect of what you do.

For more information about improving the efficiency, profit and customer satisfaction, contact us. We want your building or construction business to last for decades.



Solution for ConstructionNaveesh Sharma MIEAust  

Bachelor of Civil Engineer & Master of Engineering Science (Geotechnical Engineering and Engineering Geology)

Solution for Construction

2A/ 2 Portrush Road, Payneham, SA 5070

M: 0405 950 053     T: 08 7225 6514