Is the building industry broken?

Mindful Builder

Is the Building Industry Broken?

Well, it's not entirely shattered, but there are definitely some big considerable cracks that need to be repaired.

Today’s guest, Scott Burchell from Comb Construction, breaks down the big issues (like rising project costs, evolving regulations, and a labour shortage) that are making it difficult to remain profitable. He shared stories from both residential and multi-residential sectors, putting a spotlight on how challenging it can be for developers to justify starting new projects when the numbers don't stack up.

One of the biggest headaches? Town planning issues and rising costs have thrown a spanner in the works. Developers are scratching their heads, wondering if their returns would be better off sitting in a savings account, especially with skyrocketing post-COVID prices. But we can’t just point the finger at developers. They need to make money, and let's face it, we need places to live. It’s a two-way street, really.

Residential or otherwise, solutions to our housing hiccups won't be found by building further out into the suburbs alone. Models like Melbourne's Nightingale are fantastic—the concept solves many problems, but it remains a niche solution. We can't ignore how councils seem to hold back innovative designs, yet still hand out awards when these projects finally come to life.

Despite various efforts to streamline processes, it often feels like dealing with councils and developers requires an unreasonable amount of 'common sense'. Decisions get stuck in a loop, cities miss out on optimal layouts, and before you know it, common sense is out the window. Still, sometimes when the dust settles after these projects, people realise things aren't as bad as they feared.

Working in construction or development can feel like walking a tightrope. There's a constant risk of tipping over budget or time, thanks to complex regulations and contracts that seem to put builders in a bind more than anyone else. Scott shared some hard truths from his years in the industry, like seeing firms go bust from one bad project to another.

Something we've noticed is a need for better relationships between architects, builders, and developers. We chatted about how the 'us vs. them' mentality is holding us all back, when what we truly need is collaboration and understanding on both sides. A successful project should have the client living in a wonderful home, the architect’s vision beautifully realised, and yes—the builder making money, too!

While it might seem idealistic to think we can solve all these problems overnight, there's definitely hope if we start working together more transparently. Little adjustments can make a big difference, like if we could tweak some contract agreements to share the risk more fairly or make payment structures more manageable for builders.

The future may be uncertain, but here's hoping the construction industry finds its balance. Let's all aim to build better together, one brick at a time.

LINKS:

Connect with Scott Burchell

Instagram: www.instagram.com/combconstruction/

Website: www.combconstruction.com.au

Connect with us on Instagram: @themindfulbuilderpod

Connect with Hamish:

Instagram: @sanctumhomes

Website: www.yoursanctum.com.au/

Connect with Matt:

Instagram: @carlandconstructions

Website: www.carlandconstructions.com/