"The world is against me and the construction industry is the hardest in the world"

....or something!

Last year, a post dropped into my Instagram feed titled “10 Truths about Being a Builder (that no one talks about)”. The algorithm delivered this to me because I have a deep interest in the building & construction industry, and I have been known to go head-to-head with dodgy tradies, which I then rail against on social media!

This post especially irritated me. It came across as whingeing about realities of the builder’s chosen industry – and industry which has a reputation for completely devastating consumers through financial ruin – and casting blame on customers, regulators and the very things that protect people. Basically, anyone on the ‘other side’ of the builder's fence was the problem, meanwhile ‘woe-is-me’.

To me, that’s just not a fair, justified or accurate portrayal.

I think, generally speaking, the balance is roughly right between protecting homeowners, and supporting builders. So, I spoke up in the comments to refute the ten claims made. I got slammed. (Builders and tradies rarely respond well to push back, in my experience, no matter how valid it is, and especially from a woman).

And now I am sharing. Here are the 10 complaints….I mean ‘truths’…and my response to each. I’m not a builder. But I am also not a homeowner doing a new build. I come at this as a sensible, third party observer.

Claim #1: Cashflow

“You’re always paying out before money comes in….wages, subs, materials, insurances, permits, all before a single client payment clears. Builders basically bankroll every job.”

She Bangs Take

Builders get paid a deposit upon signing a contract.  In fact, the building industry negotiated progress payments that means builders are paid in stages for meeting certain building milestones.  These payment schedules are designed to balance builder cashflow with completion incentives.  Personally, I actually don't disagree that there is an element of bankrolling projects, but that's literally EVERY business that extends credit or invoicing terms to customers. 

Claim #2. The system is stacked against you

“Licencing bodies, the BPC, insurers, building surveyors, clients, every one of them can hold you up or fine you. Very few actually protect you.” 

She Bangs Take

Insurance does protect you, just not only you. You'll only be fined if you do the wrong thing. And licencing protects your industry from randoms flooding it and degrading standards and reputation. The Construction industry has one of the strongest unions in Australia, and the HIA and Master Builders have enormous clout, while the regulators are weak. It’s hardly a case of being under-represented with the system against you. 

Claim #3. Your revenue is capped by your insurance limit

Most builders’ turnover is tied directly to their Domestic Building Insurance (DBI) eligibility. If your approved limit is $2 million, that’s all you can legally contract for, no matter how much work you could take on. 

She Bangs Take

If your DBI cap is inadequate, you have a right to appeal it. An independent parliamentary review in May 2025 indicated there are no underwriting issues with DBI. 

Claim #4. That insurance isn’t for you….it’s against you

DBI protects the homeowner if you die, go broke or disappear. It doesn’t help you finish the job, it helps them claim against you.

Almost 5000 claims against DBI are made annually by homeowners. Yes, they need this insurance as it protects them against risks caused by YOU. 

Claim #5. Your personal assets control your insurance limit

The insurer looks at your financials, assets and net worth to decide how much risk they’ll let you take. The more you own, the more they approve but it also means you’ll lose more.

She Bangs Take

Yes, that's how the world works. For every company. This is not unique to the building industry.  Under the Corporations Act (2001), directors can be held personally liable for their actions or company debts in a limited number of scenarios, including insolvent trading (which is rife in construction), illegal phoenix activities (ditto) and dodginess including payments that preference certain creditors prior to liquidation, breaches of director’s duties, and when they make personal guarantees.  I dunno, these sound like things you should be personally liable for!   

Claim #6. If that insurance is triggered, they’ll come for you

When a homeowner claims under DBI, the insurer pays them, then chases you (and your company) to recover the payout. You can lose everything, even after the business is gone.

She Bangs Take

Yes. Obviously. Maybe don't cause major defects?  Taking responsibility for your business activity seems pretty fundamental.  As briefly mentioned above, Phoneixing in construction is very common.  This is when companies go insolvent, owing creditors, suppliers, contractors and homeowners in the lurch, and then go on to re-start under another name.  Anything that can be done to stamp this out is a good thing.   

Claim #7. Trades don’t always honour their quotes, but you have to

Subs can walk, prices can spike, materials blow out but your fixed contract price is locked in. You carry the full hit.

She Bangs Take

Builders have dozens of options for contract types and terms. If fixed price isn't working for you, change the contract used. Nobody is forcing a builder to use fixed price contracts. Get a handle on your supply chain and strengthen subcontractor contracts so that they can’t escalate costs unfairly and leave you holding the bag. 

Claim #8. You pay out long before you can bill

Deposits, orders, permits, insurances all upfront. Clients don’t care that you’re $50K out of pocket before day one on site. 

She Bangs Take

This is a repeat of Claim #1, but builders are paid a deposit. Claiming homeowners "don't care" is ridiculous. They have skin in the game too.  Construction loans, which most people utilise, are structured by the bank in line with payment schedules published by the industry, to protect themselves against builder abandonment by frontloading payment.  This seems like a sensible balance.    

Don't like it? Agitate for change with your industry associations. 

Claim #9. You’re liable for 10 years after handover

Every project carries a 10 year statutory warranty period under Domestic Building Contracts Act. If something fails, even years later, it’s still on you.

She Bangs Take

Of course it is! Who else is responsible? If your iPhone breaks within an unreasonable period of its lifespan, the manufacturer has to address it. 10 years of a 50year product life is reasonable.  Besides which, 10 years is only for major, structural defects and plumbing.  Non structural issues have a much shorter liability period.  It’s just three months for minor issues related to the maintenance and finishing touches. 

A bigger issue in my view is that Section 134 of the Building Act 1993 reads: “Despite anything to the contrary in the Limitation of Actions Act 1958 or in any other Act or law, a building action cannot be brought more than 10 years after the date of issue of the Occupancy Permit in respect of the building work”.  However, the DBI warranty (which protects the homeowner, not the builder) is only available to be claimed on for 6 years, thereby meaning if the builder dies, disappears or goes insolvent, their warranty is reduced by 4 years!    

Claim #10. Clients can withhold the final payment

And good luck chasing it, taking legal action through VCAT or court is slow, costly, and emotionally draining.  Many builders just walk away to cut their losses.

She Bangs Take

Progress payments protect builders from non-payment, but withholding the final payment ensures a financial incentive for proper completion. But, it is actually illegal for clients to not pay, and builders do have rights under the law, including the various state-based Security of Payments legislation. Yes, it's draining to pursue through legal channels. All legal battles are, for everyone.

Why are they not paying though? Something has gone horribly wrong if a builder doesn’t get their funds.  If the home is financed through a construction loan, the builder requests drawdown directly from the lender whose inspector does a final check.  If they confirm the build is complete and it matches the approved plans and specifications, the bank will indeed pay out! 

I have no doubt that there are challenges in the industry, and it’s true that construction is a high risk business.  But risk is on both sides of the ledger.  Insolvencies are bad for everybody, and protecting against it (by ensuring builders are viable, and homeowners don’t lose their life savings) is essential. What we don't want is a free-for-all that allows the worst of human nature to surface. Regulators, laws and procedures protect everybody's interests equally. In my opinion, that's a good thing. So, respectfully, I think your "truths" are misinformation.         

[The original post by joel_heidibuild can be found on Instagram]