{"id":8480,"date":"2022-01-12T00:00:00","date_gmt":"2022-01-11T13:00:00","guid":{"rendered":"https:\/\/bxglobal.wpengine.com\/au\/uncategorized\/keep-your-residential-construction-business-profitable\/"},"modified":"2022-11-23T10:30:27","modified_gmt":"2022-11-22T23:30:27","slug":"keep-your-residential-construction-business-profitable","status":"publish","type":"post","link":"https:\/\/www.buildxact.com\/au\/blog\/keep-your-residential-construction-business-profitable\/","title":{"rendered":"How to keep your residential construction business profitable despite material shortages and price increases"},"content":{"rendered":"<p><span data-contrast=\"auto\">The effects of COVID have been felt across all industries including the construction industry, and it has never been more critical for builders like you to focus on your long-term financial viability.<\/span><span data-ccp-props=\"{&quot;335559740&quot;:360}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Buildxact <\/span><span data-contrast=\"auto\">hosted a webinar with <\/span><a href=\"https:\/\/associationofprofessionalbuilders.com\/\"><span data-contrast=\"none\">The Association of Professional Builders<\/span><span data-contrast=\"none\"> (APB)<\/span><\/a> <span data-contrast=\"auto\">co-founder, Russ Stephens, who outlined some vital, but straightforward, steps you must take immediately. He warned that failing to do so would risk you becoming caught up in what he described as the \u201ctsunami of building company failures\u201d bearing down on the Australian construction industry.<\/span><span data-ccp-props=\"{&quot;335559740&quot;:360}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">During the webinar, Russ explained how you can remain profitable and even grow your businesses despite unprecedented challenges, such as labor and supply shortages and rising material costs.\u00a0<\/span><span data-ccp-props=\"{&quot;335559740&quot;:360}\">\u00a0<\/span><\/p>\n<p><iframe title=\"How to remain profitable despite the material shortages and price increases\" width=\"1200\" height=\"675\" src=\"https:\/\/www.youtube.com\/embed\/XEhhezo_X1U?list=PL2W68JzKUmJfy2MFn3wPPlcv4ovcIWsVb\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen><\/iframe><\/p>\n<p><span data-contrast=\"auto\">Below are the three key steps he recommended for all Australian home builders. Russ based these necessary actions on his extensive industry experience and the first-hand experience and accounts of builders in the US, Canada and New Zealand.<\/span><\/p>\n<h2><strong>1. Lawyer up<\/strong><\/h2>\n<h3><strong>Seek legal advice on residential building contracts<\/strong><\/h3>\n<p><span data-contrast=\"auto\">While the <\/span><a href=\"\/au\/blog\/work-continues-to-surge-for-small-residential-builders-amidst-covid-19-pandemic\/\"><span data-contrast=\"none\">pandemic has sent the building industry booming<\/span><\/a><span data-contrast=\"auto\">, increased demand has <\/span><a href=\"https:\/\/www.afr.com\/property\/residential\/price-pressures-build-in-building-and-elsewhere-20210514-p57s0r\"><span data-contrast=\"auto\">driven up<\/span><\/a> <span data-contrast=\"auto\">material and labor costs<\/span><span data-contrast=\"auto\">. As Russ explained, such rapid construction cost inflation quickly consumes any net profit you may have projected in a fixed-price project. Additionally, the resulting lag time waiting for available workers and required supplies inevitably leads to expensive delays that you, the builder, must absorb.<\/span><span data-ccp-props=\"{&quot;335559740&quot;:360}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">With the current environment changing so rapidly, in many cases, you will know you will be losing money on a signed and contracted build before you begin.<\/span><span data-ccp-props=\"{&quot;335559740&quot;:360}\">\u00a0<\/span><\/p>\n<h3><strong>Think long-term<\/strong><\/h3>\n<p><span data-contrast=\"auto\">Let\u2019s say your build has not started\u2013circumstances then change. You now surmise plowing forward makes no financial sense in the end. The right move is to stop, said Russ during the webinar.<\/span><span data-ccp-props=\"{&quot;335559740&quot;:360}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">\u201cIn fact, as the director of a company, a builder has a legal obligation not to continue, because this contract will clearly lead to a situation where the building company will be forced to trade insolvently. It&#8217;s very unlikely that a court will order a builder to start a contract that they cannot complete before having to place the company into receivership because they can&#8217;t pay their bills when they become due and payable,\u201d he said.<\/span><span data-ccp-props=\"{&quot;335559740&quot;:360}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Because contract laws vary significantly across Australian jurisdictions, your legal obligations in <\/span><a href=\"https:\/\/www.consumer.vic.gov.au\/housing\/building-and-renovating\/plan-and-manage-your-building-project\/contracts\"><span data-contrast=\"none\">Victoria<\/span><\/a><span data-contrast=\"auto\"> may be vastly different from those in <\/span><a href=\"https:\/\/www.qbcc.qld.gov.au\/contracts-payments\/contracts\"><span data-contrast=\"none\">Queensland<\/span><\/a><span data-contrast=\"auto\"> or <\/span><span data-contrast=\"auto\">Western Australia. <\/span><span data-contrast=\"auto\">Russ said he recommends seeking professional legal advice from a firm not connected to the company that may have supplied your original fixed-price contract.<\/span><span data-ccp-props=\"{&quot;335559740&quot;:360}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Also, most contracts have enough ambiguity to allow \u201cplenty of leeway for interpretation when it comes to \u2018acts of God\u2019 and force majeure,\u201d he said.\u00a0<\/span><span data-ccp-props=\"{&quot;335559740&quot;:360}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">In other words, there may still be several legal opportunities to terminate or significantly revise signed contracts to prevent you from losing money. It is critical to seek legal advice before you commence work to know exactly where you stand and your options.<\/span><span data-ccp-props=\"{&quot;335559740&quot;:360}\">\u00a0<\/span><\/p>\n<h3><strong>Stop, review, survive<\/strong><\/h3>\n<p><span data-contrast=\"auto\">\u201cYou can work yourself silly for the next 12 to 18 months, make no money and potentially face personal bankruptcy &#8211; or you can take a step back,\u201d advised Russ. \u201cYou can re-evaluate your current situation, and then only proceed with the jobs that are definitely going to return you a profit.<\/span><span data-ccp-props=\"{&quot;335559740&quot;:360}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">\u201cSo, stop right now, before you go any further. Review and re-estimate every contract that has not yet been started and include provisions to cover the expected continuing price increases.\u00a0<\/span><span data-ccp-props=\"{&quot;335559740&quot;:360}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">\u201cIt&#8217;s important to include special conditions that protect your building company from bearing the brunt of the cost escalations.\u201d<\/span><span data-ccp-props=\"{&quot;335559740&quot;:360}\">\u00a0<\/span><\/p>\n<h2><strong>2. Keep your clients happy while protecting your margins<\/strong><\/h2>\n<p><span data-contrast=\"auto\">With all the proper legal and financial safeguards in place to help <\/span><a href=\"\/au\/blog\/9-ways-to-maximise-your-residential-construction-business-profit\/\"><span data-contrast=\"none\">keep the project in the black<\/span><\/a><span data-contrast=\"auto\">, you\u2019ll now need to manage your relationship with the homeowner.<\/span><span data-ccp-props=\"{&quot;335559740&quot;:360}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Delays, unforeseen problems and unplanned costs are all par for the course on any building project \u2013 so clear strategic communication with your client is paramount.<\/span><\/p>\n<h3><strong><span class=\"TextRun SCXW96238317 BCX0\" lang=\"EN-AU\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW96238317 BCX0\">Russ <\/span><span class=\"NormalTextRun SCXW96238317 BCX0\">outlined three key techniques to use:<\/span><\/span><span class=\"EOP SCXW96238317 BCX0\" data-ccp-props=\"{&quot;335559740&quot;:360}\">\u00a0<\/span><\/strong><\/h3>\n<ul>\n<li data-leveltext=\"-\" data-font=\"Calibri\" data-listid=\"4\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Over-communication<\/span><\/b><br \/>\n<span data-contrast=\"auto\">One key reason builders have a terrible reputation as communicators is their tendency to put off the tough conversations they need to have with their clients. They often wait until the problem has grown from minor and annoying to significant and potentially catastrophic to both the project and their client relationship.<\/span> <span data-contrast=\"auto\">Over-communicating means addressing the elephant in the room as early as possible \u2013 ideally as soon as a problem is likely to significantly impact the budget and schedule. By being on the front foot about the issues that pop up, you\u2019re helping manage the client\u2019s expectations. Don\u2019t sugarcoat the problem and resist the urge to lean towards predicting a best-case outcome.<\/span>Homeowners <a href=\"https:\/\/yatesbuilders.com.au\/why-you-should-never-engage-a-builder-who-is-not-an-expert-in-communicating\/\"><span data-contrast=\"auto\">want to know they can trust you<\/span><\/a><span style=\"color: #555555;\" data-contrast=\"auto\"> to act in their best interests. And when things go wrong, you\u2019re the natural person they\u2019ll be looking to blame \u2013 but also for help. So, they\u2019ll be doubly angry if they ultimately end up footing higher costs and inconveniences because you failed to warn them.<\/span> While they may still be frustrated at having to create additional space in their budget or timeline, they\u2019ll appreciate your honesty and be grateful you acted quickly to nip their problems in the bud.<span style=\"color: #555555;\" data-ccp-props=\"{&quot;134233279&quot;:true,&quot;335559685&quot;:720,&quot;335559740&quot;:360}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"-\" data-font=\"Calibri\" data-listid=\"4\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Anchoring<\/span><\/b><br \/>\n<span data-contrast=\"auto\">As Russ puts it, \u2018<\/span><a href=\"https:\/\/www.pon.harvard.edu\/daily\/dealmaking-daily\/dealmaking-grappling-with-anchors-in-negotiation\/\"><span data-contrast=\"none\">anchoring<\/span><\/a><span data-contrast=\"auto\">\u2019 is about \u201cbending\u201d your clients\u2019 perceptions and expectations from the beginning by dictating their emotional starting point.<\/span> A key example might be providing an estimated cost range for something that includes an extreme figure at one end so that the actual amount ends up feeling far more reasonable and less scary to the client.<span style=\"color: #555555;\"><br \/>\n<\/span>Anchoring might seem simplistic and obvious, but there\u2019s a reason sales and marketing campaigns do it: it works. \u201cThe real value of anything depends on the vantage point that you&#8217;re looking at it from &#8211; it&#8217;s all about perspective,\u201d Russ explained. By controlling the context and position from which your client is viewing the situation, you\u2019re able to help them make the choices that are right for themselves and the build. <span style=\"color: #555555;\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"-\" data-font=\"Calibri\" data-listid=\"4\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Labeling<\/span><\/b><br \/>\n<span data-contrast=\"auto\">Labeling is especially useful<\/span><span data-contrast=\"auto\"> when it\u2019s time for tough conversations. Building a home is stressful enough already for your clients. And when things aren\u2019t going well, this anxiety will only be heightened.<\/span> So, before you approach the client to discuss a significant delay or high added cost that might have popped up, Russ recommends doing an \u201caccusation audit.\u201dTake a moment to consider all the worst-case scenarios the client may bring up to you: How and why will they blame you? What labels might they throw at you? Untrustworthy? Dishonest? Shonky?<span style=\"color: #555555;\"><br \/>\n<\/span>Start the conversation by anticipating these negative dynamics &#8211; saying these labels out loud makes them seem more exaggerated than they are and helps prevent the client from over-reacting to the situation. For example, you may begin by saying something as simple as \u201cyou\u2019re going to think I\u2019m ripping you off,\u201d or \u201cI should have predicted these astronomical material price hikes.\u201d<span style=\"color: #555555;\"><br \/>\n<\/span>Speaking these anticipated criticisms and negative dynamics out loud will often prompt the client to spring to your defense \u2013 they\u2019ll end up telling you that the opposite is true. Now they see things from your side. <span style=\"color: #555555;\" data-ccp-props=\"{&quot;134233279&quot;:true,&quot;335559685&quot;:720,&quot;335559740&quot;:360}\">\u00a0<\/span>Russ then suggests following this up by offering positive labels the client would want to have attached to themselves to encourage positive, reasonable behavior on their part. By telling them how smart, reasonable and understanding they\u2019re being, they\u2019ll be encouraged to act that way.<span style=\"color: #555555;\" data-ccp-props=\"{&quot;134233279&quot;:true,&quot;335559685&quot;:720,&quot;335559740&quot;:360}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><a href=\"https:\/\/www.youtube.com\/watch?v=XEhhezo_X1U&amp;list=PL2W68JzKUmJfy2MFn3wPPlcv4ovcIWsVb&amp;index=11\"><img decoding=\"async\" class=\"alignnone wp-image-94529\" src=\"https:\/\/www.buildxact.com\/au\/wp-content\/uploads\/sites\/10\/2022\/03\/Mobile_2.jpg\" alt=\"\" width=\"450\" height=\"253\" \/><\/a><\/p>\n<h2><strong>3. Watch the correct numbers now to cover your future cash flow needs<\/strong><\/h2>\n<p><span data-contrast=\"auto\">When looking at the financial position of a construction business, builders, their accountants, bookkeepers and even business coaches too often fail to see the bigger, more accurate picture.<\/span><span data-ccp-props=\"{&quot;335559740&quot;:360}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">And this has never been more important than during lockdowns, where a potential <\/span><a href=\"https:\/\/www.afr.com\/property\/residential\/builders-worry-reckless-ban-will-run-longer-20210719-p58aym\"><span data-contrast=\"none\">building industry shutdown<\/span><\/a><span data-contrast=\"auto\"> could smash cash flow and all but wipe out any remaining margins.<\/span><span data-ccp-props=\"{&quot;335559740&quot;:360}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">As Russ explained during the webinar:<\/span><span data-ccp-props=\"{&quot;335559740&quot;:360}\">\u00a0<\/span><\/p>\n<blockquote><p><span data-contrast=\"auto\">\u201cI would say there is a 95% chance that your accountant is not producing accurate year-end financial statements for your building company and, as a consequence, if you are a new-home builder, then you&#8217;ve probably been paying too much in taxes.\u201d\u202f<\/span><span data-ccp-props=\"{&quot;335559685&quot;:720,&quot;335559740&quot;:360}\">\u00a0<\/span><\/p><\/blockquote>\n<p><span data-contrast=\"auto\">Your bank balance might look great, but it\u2019s important to remember that home building is generally a cash flow positive activity for builders and the bulk of that cash is OPM: Other People\u2019s Money.<\/span><span data-ccp-props=\"{&quot;335559740&quot;:360}\">\u00a0<\/span><\/p>\n<h3><strong>Understand the numbers the underpin your construction business<\/strong><\/h3>\n<p><span data-contrast=\"auto\">It can be <\/span><a href=\"https:\/\/blog.associationofprofessionalbuilders.com\/how-work-in-progress-can-destroy-building-companies\"><span data-contrast=\"none\">hard to see an accurate picture of the financials<\/span><\/a><span data-contrast=\"auto\"> when you\u2019re still yet to receive invoices from a concreter for the slab he poured six weeks back. Another factor could be if the initial client invoices were heavily front-ended &#8211; specifically to help with cash flow at the beginning of a project.\u00a0<\/span><span data-ccp-props=\"{&quot;335559740&quot;:360}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">\u00a0According to research carried out by The APB, 81.5% of building companies owe far more than they realise, meaning they&#8217;re likely paying more tax than they should. Remember, the healthy-looking incoming revenue amounts appearing in the credit column are still waiting to cover costs, and debts are yet to appear on the spreadsheet. And paying too much tax, of course, reduces the cash reserve on hand to pay the invoices when they do eventually come in. So, just like that, your problems are compounding.<\/span><span data-ccp-props=\"{&quot;335559740&quot;:360}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">\u201cYou need to know exactly where you are right now financially before you can then look ahead and plan to the future, because better information leads to better decisions,\u201d explained Russ.<\/span><span data-ccp-props=\"{&quot;335559740&quot;:360}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">\u201cOnce you know where you are financially, you can start planning your future. And that means creating a business plan that covers your key performance indicators.\u201d<\/span><span data-ccp-props=\"{&quot;335559740&quot;:360}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The key numbers to watch like a hawk, are:<\/span><span data-ccp-props=\"{&quot;335559740&quot;:360}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">&#8211; Sales revenue<\/span><\/b><span data-ccp-props=\"{&quot;335559740&quot;:360}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">&#8211; Profit and gross margin percentage<\/span><\/b><span data-ccp-props=\"{&quot;335559740&quot;:360}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">&#8211; Fixed expenses and fixed expenses as a percentage of revenue<\/span><\/b><span data-ccp-props=\"{&quot;335559740&quot;:360}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">&#8211; Net margin and net margin percentage<\/span><\/b><span data-ccp-props=\"{&quot;335559740&quot;:360}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">&#8211; Equity<\/span><\/b><span data-ccp-props=\"{&quot;335559740&quot;:360}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">&#8211; Cash on hand<\/span><\/b><span data-ccp-props=\"{&quot;335559740&quot;:360}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">&#8211; <\/span><\/b><b><span data-contrast=\"none\">Work-in-progress figure<\/span><\/b><span data-ccp-props=\"{&quot;335559740&quot;:360}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">A small building company with annual revenue of $6 million will typically have an actual <a href=\"https:\/\/help.buildxact.com\/en\/articles\/4537810-wip-work-in-progress-reports\">work-in-progress figure<\/a> between $500,000 and $1 million. <\/span><span data-contrast=\"auto\">Knowing this number is vital in ensuring you manage how much cash you have on hand to cover the ebb and flow of your debts and expenses.<\/span><span data-ccp-props=\"{&quot;335559740&quot;:360}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">And if your equity figure is not growing month-on-month, then you\u2019re losing money.<\/span><span data-ccp-props=\"{&quot;335559740&quot;:360}\">\u00a0<\/span><\/p>\n<h3><strong>Following the money<\/strong><\/h3>\n<p><span data-contrast=\"auto\">Monitoring these and the other numbers in Russ\u2019 list lets you identify inefficiencies and red flags and allows you to take swift action when you see things going in the wrong direction. Making improvements might mean better allocation of resources, planning and managing future revenue, and tightening things up to remain profitable.<\/span><span data-ccp-props=\"{&quot;335559740&quot;:360}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">\u201cNormally this would be done monthly, but right now, with things changing so quickly, it&#8217;s a really good idea to keep an eye on them weekly,\u201d Russ advised. \u201cAnd it\u2019s not hard to do when you&#8217;re using advanced software like <\/span><a href=\"https:\/\/www.buildxact.com\/au\/resellers\/apb\/\"><span data-contrast=\"none\">Buildxact<\/span><\/a><span data-contrast=\"auto\">, that enables you to record your budget and your actuals &#8211; software like that has never become more important.\u201d<\/span><span data-ccp-props=\"{&quot;335559740&quot;:360}\">\u00a0<\/span><\/p>\n<p><iframe title=\"A quick look at Buildxact - easy-to-use construction management software for residential builders\" width=\"1200\" height=\"675\" src=\"https:\/\/www.youtube.com\/embed\/C4uubdrln-w?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen><\/iframe><\/p>\n<p><span data-contrast=\"auto\">\u201cI would urge you to be using <\/span><a href=\"https:\/\/www.buildxact.com\/au\/resellers\/apb\/\"><span data-contrast=\"none\">all the features that Buildxact<\/span><\/a><span data-contrast=\"auto\"> has to offer you guys, because you need it now more than ever.\u201d<\/span><span data-ccp-props=\"{&quot;335559740&quot;:360}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">For more on this and why these figures are so essential to understand and monitor, <a href=\"https:\/\/www.youtube.com\/watch?v=XEhhezo_X1U&amp;list=PL2W68JzKUmJfy2MFn3wPPlcv4ovcIWsVb&amp;index=12\">watch this informative webinar section here.<\/a><\/span><\/p>\n<h2><strong>Take action now<\/strong><\/h2>\n<p><span data-contrast=\"auto\">Hundreds of <\/span><a href=\"https:\/\/associationofprofessionalbuilders.com\/\"><span data-contrast=\"none\">APB member<\/span><\/a><span data-contrast=\"auto\"> builders around the world have already benefited from the above techniques and strategies and helped ward off the financial consequences of the ongoing pandemic.<\/span><span data-ccp-props=\"{&quot;335559740&quot;:360}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">And while Australia has been luckier in some ways compared to other nations in how COVID-19 has directly impacted the building sector, you must start taking steps now to ensure a profitable and prosperous future for your construction business.<\/span><span data-ccp-props=\"{&quot;335559740&quot;:360}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Buildxact\u2019s comprehensive and easy-to-use software can help you get on top of your figures, so you know where your business stands. From there, you can make the right choices for your business now and for many years to come.<\/span><span data-ccp-props=\"{&quot;335559740&quot;:360}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">To learn more about Buildxact, sign up for a <\/span><a href=\"https:\/\/www.buildxact.com\/au\/resellers\/apb\/\"><span data-contrast=\"none\">14-day risk-free trial<\/span><span data-contrast=\"none\">.<\/span><\/a><span data-contrast=\"none\"> Or, if you\u2019d prefer to talk with one of our team members, <\/span><a href=\"\/au\/trial-for-free\/#demo-section\"><span data-contrast=\"none\">book a 1:1 demo<\/span><\/a><span data-contrast=\"none\">.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true,&quot;335559740&quot;:360}\">\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The effects of COVID have been felt across all industries including the construction industry, and it has never been more critical for builders like you to focus on your long-term financial viability.<\/p>\n<div style=\"display:none;\" class=\"postcatlist\"><a href='https:\/\/www.buildxact.com\/au\/tag\/construction-advice\/'><span>Construction advice<\/span><\/a> <a href='https:\/\/www.buildxact.com\/au\/tag\/costings\/'><span>Costings<\/span><\/a> <a href='https:\/\/www.buildxact.com\/au\/tag\/webinar\/'><span>Webinar<\/span><\/a><\/div>\n","protected":false},"author":3,"featured_media":4209,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[25,44],"tags":[138,104,137],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v19.7 (Yoast SEO v19.14) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Keeping your residential construction business profitable<\/title>\n<meta name=\"description\" content=\"The effects of COVID have been felt across the construction industry. It&#039;s critical for builders to focus on long-term financial viability.\u00a0\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.buildxact.com\/au\/blog\/keep-your-residential-construction-business-profitable\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How to keep your residential construction business profitable despite material shortages and price increases\" \/>\n<meta property=\"og:description\" content=\"The effects of COVID have been felt across the construction industry. It&#039;s critical for builders to focus on long-term financial viability.\u00a0\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.buildxact.com\/au\/blog\/keep-your-residential-construction-business-profitable\/\" \/>\n<meta property=\"og:site_name\" content=\"Buildxact AU\" \/>\n<meta property=\"article:published_time\" content=\"2022-01-11T13:00:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-11-22T23:30:27+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.buildxact.com\/au\/wp-content\/uploads\/sites\/10\/2022\/02\/blog-feat1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1237\" \/>\n\t<meta property=\"og:image:height\" content=\"451\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"9 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.buildxact.com\/au\/blog\/keep-your-residential-construction-business-profitable\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.buildxact.com\/au\/blog\/keep-your-residential-construction-business-profitable\/\"},\"author\":{\"name\":\"\",\"@id\":\"\"},\"headline\":\"How to keep your residential construction business profitable despite material shortages and price increases\",\"datePublished\":\"2022-01-11T13:00:00+00:00\",\"dateModified\":\"2022-11-22T23:30:27+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.buildxact.com\/au\/blog\/keep-your-residential-construction-business-profitable\/\"},\"wordCount\":2038,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.buildxact.com\/au\/#organization\"},\"keywords\":[\"Construction advice\",\"Costings\",\"Webinar\"],\"articleSection\":[\"Blogs\",\"Webinar\"],\"inLanguage\":\"en-AU\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.buildxact.com\/au\/blog\/keep-your-residential-construction-business-profitable\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.buildxact.com\/au\/blog\/keep-your-residential-construction-business-profitable\/\",\"url\":\"https:\/\/www.buildxact.com\/au\/blog\/keep-your-residential-construction-business-profitable\/\",\"name\":\"Keeping your residential construction business profitable\",\"isPartOf\":{\"@id\":\"https:\/\/www.buildxact.com\/au\/#website\"},\"datePublished\":\"2022-01-11T13:00:00+00:00\",\"dateModified\":\"2022-11-22T23:30:27+00:00\",\"description\":\"The effects of COVID have been felt across the construction industry. 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