Ted Fitzgerald shares his insights in the
Age
Developers starting to ask tougher questions of their builders
to ensure they are safeguarded against any collapse.
"Developers are looking for builders with more robust
balance sheets and parent company guarantees, so they can be sure
that the uncapped liability that the builder signs up to can be
delivered upon because when the builder goes into liquidation, the
developer has to pick up the pieces in addition to the additional
costs," KordaMentha Real Estate Partner, Ted Fitzgerald
says.
"We're seeing situations in the market where builders
are approaching developers and trying to share the burden of these
cost increases, but developers are wary of setting a precedent and
then not being able to control contagion risk in the industry.
