The second wave of construction insolvencies is coming
Rising construction costs, fixed-price contracts, labour shortages and tougher project economics are setting the scene for a second wave of builder insolvencies, even as Australia remains desperate for more new homes.
Builders are facing rising costs, labour shortages and fixed-price contracts that are putting increasing pressure on already-thin margins. (Image source: Svitlana Hulko/Shutterstock.com)
Australia’s already besieged construction industry may be heading into a second wave of insolvencies.
The first wave was driven by the dramatic increase in construction costs
that followed the pandemic, with builders caught between fixed-price contracts and rapidly escalating labour and material bills.This time the warning signs are buried in the contracts already sitting in builders’ books.
Build Metric says the second wave revolves around buil…
