Why are large companies failing?… While it’s business as usual for custom home builders on the Sunshine Coast!

Queensland’s construction sector has been hit hard since Covid with rising building costs and supply chain delays; many large companies are collapsing and liquidating.


Why are large companies failing?

In 2020, the Federal Government issued eligible Australians $25,000 to build or renovate their homes, to boost construction demand and keep builders employed during the pandemic. This scheme increased the number of housing contracts signed, with large building companies attempting to sign as many contracts as possible, not recognising the risk factors. The rising prices in building materials and supply chain delays resulted in expansive costs, making it impossible to break even. On the Sunshine Coast, large building companies have collapsed, impacting hundreds of homeowners, and leaving their future uncertain. 


Where have large companies gone wrong?

The Association of Professional Builders identified why large building companies collapsed.


1. Risk Management

During the pandemic, large companies worked overtime to close more contracts than they would typically sign, whereas custom home builders remained cautious.


2. Communication with clients

Large companies increased the price of their clients’ fixed-price contracts or rescinded their contracts, leaving their clients frustrated.       


3. Relationships with Subcontractors and Suppliers

Loyalty to quality subcontractors and suppliers has never proven to be as crucial as in recent times. Larger companies often chop and change, chasing the lowest price. The subcontractors and suppliers hit back when the opportunity arose due to a lack of availability in a thriving market.


Taking advantage of the home builder grant and signing as many contracts as possible in a short time is the approach many larger builders took. However, this business model failed to work during these times, and companies could not integrate a successful risk management plan. The surge in housing demand also impacted the building industry’s workers, as subcontractors were raising their prices or were unavailable due to being overbooked. As a result, new homeowners were disappointed by the lack of communication, as builders could no longer execute their fixed-price contracts. 


So, what’s the difference with small custom home builders?… 

At Pacific Blue, we believe in taking the time to create quality outcomes and value each and every one of our clients. We thoroughly understand the ever-evolving building industry and aim to make your building experience as transparent as possible. We have successfully outperformed large companies through risk management by not taking on more than we can handle and communicating with our clients and longstanding relationships with our associates.


Unlike large builders on the Sunshine Coast, we don’t work off a standard design. Our custom-built homes are specialised and individualised for each client, and we aim to guide you through a process that doesn’t disappoint. We retain strong relationships within our industry to secure loyalty, reliability and productivity, ensuring there is no downtime. We pride ourselves on being honest and transparent with our clients. At Pacific Blue, we put you first before anything else.


Want your very own? Contact us today to find out how we can make your luxury custom home build a reality.

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