Construction chaos: ‘Within two to three years, we’re going to see a wave of collapses’

Construction costs are rising at an exponential rate, putting unprecedented pressure on building companies, OneRoof reports. Insolvency expert Iain McLennan believes rising construction will make it difficult for builders to deliver on fixed rate contracts. It is not commercially realistic for customers to expect builders to bear all the risks and then be upset when the builder fails, he says. Room needs to be left in contracts so the builder can charge through unexpected price increases. “On the other side builders need to meet deadlines and not over commit.”