Post the construction boom, profit margins for builders and developers have come back down to earth, slimmer than ever.
Developers and builders are looking at ways they can more profitably grow in 2021, and the spotlight is shining on areas previously overlooked.
But there’s a new opportunity cost in town, and it’s called Retentions.
Tied to the Defects Liability Period (DLP), these monies sit in the balance sheets of many of the major builders in Australia – and can amount to several hundred million dollars.
If anything should prevent release of retentions, it can have a serious impact on the bottom line, growth, and even survival of the company.