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Oppo Camp Non-Eagles Discussion
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A lot of builders filled their boots with what quickly became bad contracts when the construction stimulus packages were rolled out. BGC construction still have thousands of those homes to finish now. You can only imagine the hole that would create in their cash flow trying to finish old homes with negative margins (and not selling any new homes with better margins).
Commercially at least builders are now pricing work with margin again. Prior to Covid it was standard practice to win a tender with no profit and then try to cut the guts out of the job, hold retention on subbies etc just to make a project viable. Some builders who tried to trade through Covid with those old contracts hanging over them ended up folding, as you can imagine.
Subbies have had a very good lick of the ice cream in the past few years, though. Trying to push for 240k starting salary on a unionised site with all the BS they have folded into them is ridiculous. I don't think that number can be real, they'd be laughed off site.
It’s not unfortunately.
They’re “only” after a 15k pay rise, as that’s about inline with inflation.
A few on our board who work in either the public or private sector in the industry here.
It’s stupid over here.
I am one of those waiting for my house to be finished (Not BGC) which started mid 2020...
My Builder screams he cant get trades but really its just cause he wont pay them what they are worth.
Yep you're onto it. Big builders like Home Group are back to turning out homes in roughly 6-8 months. They have capped their monthly sales/starts though to avoid the bottleneck that BGC created for themselves. So if you signed up with them today you might not get a slab for 6+ months but from that point it will flow as a normal build.
MKMatty
Busy Vibin’
My sister has just moved into her new build, with total time to completion being 12 months. It's quite alarming to me that her slab went down after her neighbours and yet she's in her house now.. her neighbours place is still a slab..
Bender_
X
BigBuildy
You might need to come to the party to get it done. This boom has been the subbies absolutely screwing everyone for what it's worth. On a standard 3x2 contracted in 2020, your builder could be looking at a $100k loss. They probably can't afford to get it done.
Either stump up some cash to make it work (making sure it's in escrow so it can only be used on your job) or try and push the builder into administration so you can get a new one. If you do that, be aware that the insurance only covers up to $100k over run, which might not be enough as a 3x2 that was $250k pre covid is now $400k.
RookiePick
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Without trying to be a killjoy I suspect houses build Covid and for the few years afterward will gain a reputation for being shitters in due course.
God knows what shortcuts have been taken to try and scrape some margin back into the job for the builder.
God knows what shortcuts have been taken to try and scrape some margin back into the job for the builder.
Well My sister is building a house near Canning Bridge train station. She didnt have to Travel far to get to work.
All she had to do to reach work, Walk 10 minutes to Canning Bridge train station, get off one or 2 stations later and her work site is literally across the road from the train station.
All she had to do to reach work, Walk 10 minutes to Canning Bridge train station, get off one or 2 stations later and her work site is literally across the road from the train station.
RookiePick
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That's dangerously close to what living in a real city would be like.
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Similar situation with Summit.
All too easy to go broke in a boom
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They have the financial clout to stay in the game. They are however, paying more attention to new contracts rather than finishing the non-profitable ones where they are dragging their feet.
That's probably cashflow driven as well. If it costs you 50k to get to plate height and your progress payment invoices come to 60-70k (all theoretical) then you haven't actually made any money to keep the lights on. So you need to be churning out a few houses where those same progress payments are 100k+ to make some money to be able to stay afloat and finish one of the older builds.
Ochre
Stop the Steal!
I know Bock and Gunston, but what does the C stand for?
Curtain
I was expecting to see some discussion about brashaws massive whack to the AFL
Like the AFL gives a s**t. If his entire family or even James came out and endorsed it then maybe.
Cam Ellis-Yolmen
That's both Adams and Ginnivan having a dig at McRae now.
Wonder if he really is Mr nice guy.
Wonder if he really is Mr nice guy.
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