The perception of the building industry is that of large multi-national companies complete with cranes on the skyline.
In reality, approximately 70% of all builders are small family-run businesses, often made up of no more than a team of husband and wife. In the background are the children, witnessing the endless stress and worry that comes with running a small construction company. As the first point of call, the wives are often the ones carrying the brunt of the load. When the phone rings, their shoulders tense, wondering which contractor will be on the other end chasing money. These women carry the day to day stress of the business, which in turn affects the whole family.
The current business model requires the builder to manage the payment of other trades and supplier’s, lower in the contract chain, with monies provided to them from the client. The regulator requires that the builder put up tangible assets as equity, which is more often than not, the family home. This is done to protect the client and the contractors, in circumstances when the builder declares insolvency. When the family home is put on the line time and time again, as a means to cover the inadequacy of a flawed business model, what the home stands for, safety, shelter and protection, is jeopardised.
Furthermore, regulators such as the Queensland Building and Construction Commission, are increasing pressure on small businesses, forcing them to take financial risks like never before. With mandatory audits and demands of payments to those parties lower in the contractual chain, businesses are facing a real threat of serious consequences, including potential imprisonment, should a payment not be made on time.
The forgotten victims are the women and children, who, by no fault of their own, are wrapped up in an industry so disadvantaged, it is affecting their right to a sense of safety and security. All of this can be attributed to a flawed business model that forces builders to be responsible for the security of payments for other trades, even though they are not being afforded any security from the customer themselves.
The industry’s issue is not what is constantly portrayed in the media. It’s not about bad builders or shoddy workmanship. This misconception is creating pressure on already fragile family units. The issue is the fact that good builders are using a bad business model.
Under Your Building Planner, the model changes. With the Joint Security Account Module, funds from the customer are pre-loaded ahead of all tasks. This ensures security for all parties involved. No one will undertake work without knowing when and how much they are going to be paid.
The Joint Security Account allows the customer to pay both the builder and the trades and suppliers lower in the contractual chain, on a weekly basis. This in turn alleviates the financial stress which would otherwise be placed on the builder's
Imagine, no longer lying awake at night, worrying about how to pay your bills. Imagine not having to be the subject of aggressive phone calls or audit pressures from regulators. Imagine not having to use your home as collateral, in support of a bad business model. Your Building Planner will give you the confidence to head off on that family holiday, or to buy that new boat to enjoy with your loved ones, knowing that your assets are safe. It is a revolutionary model that will provide you and your family with a sense of security you may have otherwise never experienced.
The team at Your Building Planner can show you how to easily and painlessly transition your building business from the old way to the new, secure and scalable business model. Contact us today.
See how a builder’s son viewed how his parents worked before and after