Why So Many Builders Have Gone Bust – And Why Patterson Construction Is Built to Last

Over the past few years, Australia’s building industry has faced some of its most challenging times in decades. The collapse of numerous construction companies has made headlines across the country, leaving unfinished homes, anxious clients, and shaken confidence in the industry.

So what’s really going on?

The reasons for these failures are complex, but they share a common thread: increased pressure on costs and delivery timelines with little room for error. Here’s a breakdown of the key factors that have brought many builders undone—and how Patterson Construction is doing things differently.

1. Rising Material Costs

Prices for essential materials like timber, steel, and concrete have surged since the pandemic. For builders locked into fixed-price contracts, this meant absorbing those increases themselves—slashing already slim margins and, in many cases, leading to significant losses.

2. Labour Shortages

The industry is also facing a critical shortage of skilled trades. This shortage not only drives up wages but causes project delays, impacting both cost and timelines—two things builders in a competitive market can’t afford to get wrong.

3. Supply Chain Disruptions

Global freight issues, local shortages, and unpredictable delivery schedules have all contributed to delays and budget blowouts. Many builders were simply not equipped to deal with this level of disruption.

4. Fixed-Price Contracts

These contracts may give clients cost certainty—but they pose a high risk to builders. When input costs rise and can't be passed on, every project becomes a gamble. And for some, the stakes proved too high.

5. Economic Uncertainty

With rising interest rates, inflation, and a cooling housing market, demand has dropped, and borrowing has become more expensive. This economic pressure compounds all other issues, making survival even harder for underprepared operators.

6. Planning and Regulatory Delays

Slow local government approvals and red tape can stall projects for months. These delays impact cash flow, push out completion dates, and stretch already tight budgets even further.

Why Patterson Construction Is Different

We’ve watched the industry landscape change—and we've adapted.

At Patterson Construction, we believe that sustainable growth starts with realistic planning. That means we don’t take on more work than we can confidently deliver, and we do the numbers upfront, ensuring our projects are financially sound from day one.

We focus on:

Carefully selected projects that align with our capacity and values

Transparent client communication to manage expectations and timelines

A hands-on approach from builder Lucas himself, ensuring quality and control

Strong supplier relationships that help us navigate market volatility

Prudent financial management that protects our clients and our company

In an unpredictable market, this kind of discipline is what keeps our business—and your build—on solid ground.

If you’re looking for a builder who’s committed to quality, transparency, and longevity, talk to the team at Patterson Construction. We’re not just building homes—we’re building trust.