3 Key Factors To Ensure Your Builder's Success In Today's Market

In the fast-paced and competitive construction industry, it is unfortunate to witness the financial collapse of some builders. 

The root cause of their struggles often lies in locking in pricing too early and being unable to adjust to the volatile prices of building supplies. At Anchor Homes, we take a different approach to ensure our stability and strength. 

In this article, we delve into the reasons behind the financial difficulties some builders are facing and explain how we maintain our strong and stable position. If you’re planning to build, use the below tips to decide which company you can trust.

The current building industry environment

With rising construction costs, ongoing supply chain issues, and locked-in price contracts, many companies have been forced to close their doors. Sadly, their customers have had to also face the consequences when several major building companies folded under pressure early in 2023.

These collapses not only affect the company and internal staff but also the subcontractors, suppliers, and customers. If you want to build a house, you need full confidence that your company is prepared for these events. 

Why Anchor Homes is different

At Anchor Homes, our success in the dynamic building industry is built upon a foundation of efficient and streamlined processes. By implementing these processes, we are confident in maintaining our financial strength as one of Australia's leading modular home builders. This financial stability, in turn, provides peace of mind to our valued clients, safeguarding their investment in their new homes. 

Let's look into the three key factors we adhere to at Anchor Homes to ensure our continued success in today's ever-evolving market.

3 key factors to assess your building company

1. A partnership approach: protecting clients

Unlike companies that take a stage-by-stage process for each project, we recommend looking for builders with a partnership approach.

At Anchor Homes, we believe in protecting our clients and fostering strong partnerships with them. While locking in pricing very early with a builder may seem advantageous for a buyer, recent events have demonstrated the potential pitfalls. 

Rising supply and trade costs can leave builders unable to turn a profit, jeopardising the completion of projects and leaving clients with unfinished homes or financial losses. By safeguarding our own business and profitability, we ultimately protect our client's interests too. Our clients can have confidence that Anchor Homes' stable position ensures a reliable and successful construction journey.
 
We understand the importance of transparency and accuracy when it comes to pricing. Therefore we believe the essential process to follow is for our team to work with clients to finalise their design, floor plan, specifications, and interior fittings before we lock in a contract price. 

We build many custom designs and modified standard designs so this process works best for us as no two projects are ever the same. By waiting until you have made all the necessary decisions and reached the final design stage, we can provide you with a more accurate price for your project in the contract. 

This approach eliminates the risk of surprise costs for upgrades or changes along the way. It also allows us to factor in the current market prices for building supplies, ensuring that the price reflects the actual costs at the time of construction.
 
Our pricing process aims to provide you with transparency, accuracy, and protection against unforeseen costs. By aligning the pricing with the final design and considering the current market conditions, we ensure a fair and competitive price for your project while minimising financial risks for both parties involved.

2. Efficiency and timelines

We recommend looking for builders with straightforward and seamless construction timelines and processes. With an on-site construction project, timeframes can often become very delayed or uncertain, but with modular construction, they can be more predictable and efficient. 

One of the key factors that sets Anchor Homes apart is our robust and proactive approach. We’ve implemented stringent processes that enable us to closely monitor the market and adjust our pricing accordingly. 

By keeping a constant eye on cost increases, we ensure that our clients always receive a fair and competitive price for their projects. This strategic approach allows us to stay ahead of any potential financial pitfalls caused by fluctuating building supply prices.
 
Additionally, as modular builders, we have the advantage of quicker construction timelines compared to volume builders. This means that the timeframe between signing the contract and starting the construction process is generally much shorter. 

Consequently, the price of the supplies required to build your house remains more accurate and reflective of current market conditions. 

In contrast, builders who lock in pricing early before the majority of selections are made may encounter unexpected cost escalations if supply prices rise before construction begins. This can lead to financial troubles for the builder and potential delays or increased costs for the homeowner.

3. Selective project acquisition 

During the federal government's homebuilder stimulus campaign that was announced in the pandemic-era, the construction industry experienced an influx of projects. This lead many builders to exceed their capacity. Simultaneously, the Australian building industry faced significant supply chain constraints, causing a surge in material prices and squeezing profit margins. 

During this time, Anchor Homes exercised caution by maintaining a strict policy on the number of projects taken on at once. We carefully select projects that align with our capabilities and modular process. This strategy safeguards our profitability and prevents us from being overwhelmed by an excessive workload.

Over to you

With our partnership approach, efficient building timelines, and selective project acquisition, we can build your house faster and more securely. 

If you have a question about the modular home process or you're seeking advice, contact our team our team today.