I stumbled across this Oct 2015 blog post from receivers and insolvency experts, McDonald Vague regarding the failure rate of building companies over the past couple of years. Thought it was worth forwarding to you. They make some good points and all builders should take note.
“An increasing number of building firms “went bust” in 2014 despite the building boom in Christchurch and Auckland, leaving homeowners, contractors, and the taxman out of pocket. As the construction boom in Auckland gathers pace the situation is going to get worse.
Nearly 100 rebuild-related companies have gone into liquidation or receivership in Christchurch alone since the February 2011 earthquake. We see the same trend occurring in Auckland.
People often ask us why so many building firms are going under as they should be making a fortune. The simple answer is that the good ones are, but there are many that have been caught out by over trading…” CLICK HERE to link through to the balance of the article.
If you want to discuss how to prevent you business suffering from the fate discussed in this blog post, EMAIL ME HERE or visit my website and download my free guide.
Andy
The Trades Coach