July 07 2021 0Comment

3 Tips To Prevent You From Working With A Builder Going Broke

So, you’re finally ready to build your dream home but are fearful of a construction horror story? Maybe you have heard from a friend of a friend that their builder had gone broke and had to stop the job halfway in. In this blog, we have included all you need to know about avoiding placing your dream home in the hands of a builder going broke. 

 

Let’s look at the facts

  • According to the ASIC, 169 NSW constructions companies went into receivership, administration, or a court-order shutdown in the 2019 June quarter.
  • Throughout the 2018-19 financial year, there was an increase by 101 construction companies going under, from the previous financial year, reaching 556 in total.

 

Broke Builder

 

Tip To Avoid Choosing A Builder Going Broke:

  1. Avoid choosing the cheapest quote

In most cases, if you think the quoted price is too good to be true, it probably is! Essentially, this can be a sign that the builder needs more business to keep afloat.

 

Advice from director Thomas Nuzzo:

“We think people should not just go on price; if you go for the cheapest price there may be something the builder has missed, left out, or forgotten. In saying that, it may become the client’s problem if the builder does not have the funds to finish, resulting in delays and possibly legal actions.” 

 

“We would suggest obtaining a few quotes, making sure you get rid of the highest and the lowest. The builders with the quotes in the middle are the ones you should be looking at and talking to.”  

 

  1. Do your research 

If you are hoping to build a million-dollar home, it is important to confirm that your builder has experience running a job of this size. If not, they may not have financial stability. 

 

Advice from Director Thomas Nuzzo: 

“You don’t want a builder that only builds $300,000 homes and you have a 2-million-dollar home to build; this may not be the right builder for you. They are probably not experienced building anything of that scale and do not have the finances to run a job like that.”

 

  1. Speak to previous clients or subcontractors 

Lastly, just like the hiring process for a new employee, completing a reference check is vital. This step can confirm the good, the bad and the ugly, and prevent a negative building experience. 

 

Advice from Director Thomas Nuzzo: 

I think the most important thing is that you speak to previous clients. They have a good understanding of how that builder works, and if they are likely to be financial or not.”  

 

Why Choose ATN Constructions For Your Next Construction Project? 

ATN is aware of the current statistic and has worked out the formula to stay reliable and trustworthy all year round. Being a family business, ATN Constructions maintains a 2-3 large job maximum per year. This strategy guarantees each job has the attention and finances to reach a seamless completion.

As luxury home builders, the team at ATN Constructions have years of experience building custom million-dollar homes. With this familiarity, the team is aware of how to run complex and high-end jobs with ease.

In saying that, why not take our advice and check out our testimonials?

 

Find out more from ATN Constructions Director Thomas Nuzzo by downloading our ‘5 Common Client Fears When choosing A Builder, And How To Avoid Them? – Solutions Guide’ 

Don't Miss Out!5 Common Client Fears - Solution Guide

Find out ATN CONSTRUCTIONS' Solutions to the Most Common Client Fears when Choosing a Builder.  

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