Home building after the Porter Davis collapse

One question we have been asked a lot recently is, how has the collapse of Porter Davis Homes affected Hanson Building?

Well here are three answers.

(1)    It has made clients more aware of just how tight builders’ margins are

Like many industries, construction has undergone significant change in the past few years, as a result of the pandemic, supply chain shortages and disasters, such as bushfires and the war in Ukraine.

These changes include a rapid and significant increase in the cost of building materials (fortunately these costs seem to have stabilised) and high levels of employment, resulting in labour shortages. Builders have had to pass some of these costs onto clients, but have absorbed most of them leaving margins very tight.

For some, margins have become so tight that their businesses are no longer viable. Of course, that is not the case for Hanson Building. Hanson Building has been able to keep prices as low as possible for clients, while still running a strong business due to our commitment to best-practice operations.

(2)    It demonstrates the difference between volume building and bespoke renovations and extensions

Volume building = a company that constructs a limited range of pre-designed new homes on completely cleared sites.

Bespoke renovations and extensions = a company that constructs customised, one-off additions and alterations to existing homes.

Learning about the collapse of Porter Davis Homes shows how different new home volume building is (what Porter Davis does) to bespoke renovations and extensions (what Hanson Building does). Each client at Hanson Building is treated personally and expertly, no two clients or jobs are the same. Contracts are signed immediately preceding the start of a new job. Hanson Building does not sign contracts and take deposits until construction is ready to begin meaning the contract price and the build price will match. Once you sign contracts and pay a deposit with Hanson Building, permits will be issued and building will commence within a matter of days or weeks.

 (3)  It shows the importance of builders and clients both getting the necessary insurance in a timely manner

Hanson Building carefully ensures that required insurance policies are in place before commencing projects. This protects both the client and the builder. As soon as a domestic building contract is signed, builders are required to take out a domestic building insurance policy. This policy is required by law to cover for incomplete or defective works.

If you would like any more information on construction costs, or a realistic and fair quote for your extension or renovation, contact Hanson Building.