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10 Reasons Why Your Builder Is Losing You Money

Updated: Jan 24

Could your builder be losing you money?


Unfortunately some Sydney builders lose truckloads of money for their clients all the time on construction projects.


The question to be asked in these cases are; when did the builder realise the project was in trouble and what actions did they take. Could they have reduced the losses by implementing better construction policies ? Of course equally important is what actions should be taken to prevent you losses in the future.


Reasons builders lose money


There are many reasons for projects losing money. These may include:


  • Poor productivity

  • Poor supervision

  • Low worker morale

  • Poor management and planning

  • Ordering the incorrect resources

  • Poor quality work resulting in re-work and delays

  • Suppliers and subcontractors submitting claims for materials or work they haven’t provided

  • Suppliers not delivering the quantity of material claimed on their delivery documents

  • Overpayments to subcontractors or suppliers

  • Delays directly attributable to the customer

  • Additional work requested by the customer

  • Work being included on construction drawings which wasn’t in the original scope of work and wasn’t included in the contract


It’s important to investigate the reasons the project is losing money and not focus on the first and most obvious excuse. Your builder shouldn’t be focussing on finding an excuse for the loss, but rather be looking for the cause so that appropriate action can be taken to prevent further losses and, if possible, to recover the money lost.


Of course the fundamental lesson is to prevent losses occurring in the first place.


This is done by ensuring the project team gets the basics right – which includes:


  1. Adhering to appropriate BCA construction standards

  2. Resourcing the project correctly

  3. Ensuring there are financial controls in place

  4. Ensuring only the best contractors

  5. Checking that the project adheres to best quality requirements and that a quality control system is in place

  6. Preparing a realistic home construction schedule which completes the project in the shortest possible time making the best use of the available resources

  7. Pricing the project correctly


Don’t wait until your project is in serious trouble before realising it is losing money. When a loss is discovered take the correct actions to stop the loss.


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For more information or to get started contact Buildlife Projects via our Get A Free Quote page or call 0401-320-187

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