More Drama in the Property Industry

More Drama in the Property Industry
An indication of how quickly financial setbacks can occur in the building and construction industry was exposed in the national media recently. The takeout from this is that prompt, incisive, well-planned action can avert a major setback and often create a sound platform for future growth and prosperity.

Metricon is a successful, solvent and highly regarded residential home building company established in Melbourne in 1976. The recent and sudden death of its co-founder and chief executive last week and a meeting with Victorian Treasurer Tim Pallas sparked rumours the group was in dire financial straits and losing the support of its banker.

Prompt action by the company’s management, including an equity injection from shareholders and increased funding support from its bank has allayed the concerns that were raised. This swift and decisive action was welcome news for Metricon’s many subcontractors, employees and creditors.

Both sides of Government appear to have an understanding of the impact of the Pandemic and supply-chain issues facing the building industry with NSW Premier Dominic Perrottet indicating his government would consider a bailout for the company if necessary and a spokesman for the Victorian government stating it understood the impact that supply issues and cost increases were having on builders. It would continue to work with the industry to address these challenges.

Adams & Associates provide services to clients that have identified minor or serious non-compliance breaches within their property portfolios. Predominantly defects that may create risks to occupants and visitors to the premises, these require urgent remediation to satisfy Building Code of Australia and state or local government regulations.

Costs of remediation can be high, are rarely budgeted and as such, present an imposition on the owner’s cash flow. This is particularly prevalent in the not-for-profit sector where financial resources are limited and primarily required for support of people in care.

An unexpected event such as that experienced by Metricon highlights the adverse impact on a business’s financial wellbeing. Adams & Associates can not only assist you with your compliance advice but have relationships with established, ethical non-bank lenders that can assist owners with funding options that may underwrite part or all remediation costs.

Contact Adams & Associates via the Procurement Australia website at the following link

https://www.paltd.com.au/comprehensive-building-code-compliance-services-advice

Blog post submission: Lee Dunn

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