Bob Day building company collapses

Yes - been there...

 

If the developer cuts corners the licence holder wears the repercussions. So they want to be good mates and/or as dodgey as each other.

I wouldn't be lending someone my drivers licence for them to go speeding etc I'm not wearing that.
There's always loop holes and ways around things but the majority do the right thing.
There's a lot behind the scenes that goes in to getting those cowboys on site to make a mess. ... and then magically make a house appear

Tell us how you got burnt? Went with the cheapest quote?or didn't check licence or insurances?

 

Thats true but often money can be too enticing for builders to lend their license and look the other way.

In any case, the government can make the developer responsible by allowing them to build but be governed by the same rules as a builder. The money can also channel via a trust account (very similar to a estate agent) so no one ends up taking the money and running. It will entice developers to do it right because they wont have to pay a builder for his license while at the same time reducing the risks of cutting corners because the developer is now directly responsible.

I didnt get burnt, I managed to learn a lot from both good and bad experiences. You dont need to have been burnt to know this.

I have managed to do couple of developments myself and I remained very hands on. Often I was one step ahead of the builder or tradie that was working with me and I have managed to learn a lot about the regulations, insurances and basically how the process works. I have also formed a good network of trades, many of whom are family and friends that I talk to on regular basis and they offer a wealth of information.

 

Point 1 - was floated in the last witch hunt into the building industry - it didn't have legs so we have the security of payments legislation.
Point 2 - must be your relos who have given you all of the great advice to form your opinion - a seasoned professional

 

I don't really see why the developer needs licencing, aren't they are merely the "cash cow" to put their investing plan(gamble) into action, by engaging a team of professionals who are regulated

 

Developer doesn't need a license. He or she needs to have an option so if they don't want to, they don't have to engage a glorified project coordinator and is able to engage trades directly instead which has been the whole point of my argument.

 

@Tenex - but will an inexperienced, unqualified and unlicensed developer get finance if they don't engage a builder?

Would you buy from them?