With activity in the commercial construction sector set to surge to its best year in more than a decade, and the Central West continuing to develop, local building companies are urged to review their insurance.
The latest Building & Construction Industry Forecasts produced by Master Builders Australia (MBA) show that total commercial construction activity is expected to contribute $42 billion to the economy in 2017-18. Locally, an increase in both commercial and residential development has kept builders busy but all are aware how quickly things can turn around.
“When you start a company, you don’t know what you don’t know,” said Wentworth Building and Construction Managing Director Mr Steve Sanders. “If you don’t have good structure and processes, things can go wrong very quickly.”
As one of 288 MBA Central Western Division members and 339 listed building construction companies in the Yellow Pages, Wentworth Building and Construction has expanded from residential construction into commercial construction.
“The economy is really strong and has been for a while which gives us confidence in what we’re doing, but if something goes wrong, and you’re not protected, it leaves your business open to disaster. Having the right insurance is critical,” said Mr Sanders.
Mr Jim Morgan from locally owned and operated Morgans Insurance agrees that construction businesses are vulnerable to insurance issues and having the right protection is essential.
“When it comes to insurance for those in the construction, building and civil works industry the road forward can be confusing,” Mr Morgan said. “With all specialty trades, often the owners are experts in construction, but not in financial risk management, which is why you see, even some of the biggest businesses go under when a claim is made.”