How the ABN Group is progressing your new home build
Over the last several years, we’ve seen a hefty set of challenges for Victorian builders, especially when it comes to building timeframes. The speed at which your home is built depends on a range of factors – including the type and size of your floorplan and block, materials and labour availability as well as your builder’s planning capability, their internal processes and the strength of their supplier relationships.
Despite the ongoing external industry challenges that most builders are experiencing, the determination, passion and commitment to customer experience demonstrated by our team over these past 12 months has ensured that we continue to deliver within the timeframes set out in the Housing Industry Association contract.
WHAT CHALLENGES HAVE CONTRIBUTED TO THESE EVOLVING BUILD TIMEFRAMES?
While the pandemic may feel like a distant memory, we are seeing residual impacts take place. As borders closed and travel became constrained due to the pandemic, many people decided to spend their holiday savings on their family home. What’s more, governments offered construction stimulus packages to help support the economy. While this was good news for the booming building and housing industry, it did come with its own set of challenges.
‘Trades and materials are in high demand globally, meaning building materials that are usually imported from overseas are in short supply. Much of our contractor workforce is also isolating due to COVID-19, and union strikes at factories that manufacture raw materials are frequently in the media,’ explains Site Manager, Antony Langkamp.
‘These challenges are unpredictable and can impact our daily and forecasted scheduled works.’
How the ABN Group has mitigated build delays
‘Many builders are experiencing months of delay, and this is where choosing a reputable builder pays off. The ABN Group has been in business since 1978, building more than 80,000 homes across WA and Victoria. Whilst we haven’t been immune to the effects of the pandemic, we have managed to minimise serious delays through our strong balance sheet and cashflow, constant focus on external issues, our strong partnerships and supply arrangements, and flexibility in our processes,’ says ABN Group’s Building Operations Manager, Chris McRoberts.
That said, any delay – even a small one – can be frustrating. Building your dream home is one of the most significant and exciting times of your life. So, it’s only natural to wonder when you’ll receive your keys.
Here are some of the other ways we’re managing and mitigating build delays in the current environment.
1. Drawing on our strong partnerships
The ABN Group has spent over 40 years developing quality supplier and trade relationships that we can now leverage to get the best result for our customers. ‘In a recent survey, 93% of suppliers said that they felt their relationship with ABN Group was stronger than their relationship with other builders,’ explains ABN Group’s Procurement Category Manager, Oscar McPhee. ‘This means we are often prioritised ahead of other builders, meaning we can keep customer build projects on track. We’ve also built relationships with multiple suppliers for each stage of a house build, ensuring work can continue even if one supplier faces an issue.’
During the pandemic, our team has maintained constant communication with our supply partners, with frequent meetings to help relieve material shortages as much as possible. ‘By understanding our supplier challenges, we have greater visibility of any future delays,’ adds Oscar McPhee.
2. Upfront and transparent pricing
The issues caused by the pandemic have meant many builders have been hit with hefty price hikes, impacting profitability. ‘There’s no doubt that a booming building industry and global material shortages have resulted in significant price increases for builders,’ explains Oscar McPhee. ‘While no business will be immune from the effects of COVID-19, we’re in a strong financial position to confidently address these current challenges. Our fixed price contracts offer peace of mind for our customers, along with the fact they’ve chosen a reputable builder who has the security to trade through these types of scenarios,’ adds Oscar.
3. Leveraging our land developer relationships
Unfortunately, land developers are experiencing similar COVID-19 related challenges with labour and material shortages. ‘This may lead to title delivery delays, which we rely heavily upon to start work on your new home,’ explains ABN Group’s General Manager of Development, Oscar Stanley. ‘It’s important to remember that land developers are not one-size-fits-all. They range in size and scale, impacting their ability to deliver land titles on time.’ To help mitigate these risks, ABN Group has been leveraging its concrete relationships with Victoria’s largest land developers to help secure exclusive blocks for its new customers.
As for those customers who have already secured land, Oscar says it’s important to be patient. ‘We are in constant communication with our land developer partners, allowing us to predict market direction and how this may impact title times,’ says Oscar. ‘While title delays are understandably frustrating for new landowners and much of this is out of our control, our strong developer relationships mean we can keep you as up-to-date as possible.’
4. Limiting home builds
As a result of the construction grants introduced by the government over the last couple of years, the building industry has been in overdrive. Because of our unrelenting focus to deliver quality throughout the entire build journey, the ABN Group has always acted prudently to put a limit on the number of homes that we build in any given year. ‘This customer–focused approach has been one of the key reasons that we’ve still been able to deliver within the build timeframes set out in the Housing Industry Association contract,‘ says Chris.
5. Ensuring we are well staffed
With people isolating due to COVID-19, many builders are painfully understaffed. While the size of the ABN Group means we can share resources between regions where necessary, our team and the business is not immune from unplanned isolation periods. ‘We check progress and delays with all of our construction team on a weekly basis and adjust as needed’ adds Chris.
This is further complemented by a strong focus on recruitment through analysing workflow and ensuring each region has the required coverage.
6. Enhanced construction planning and customer communication
Regular and transparent communication between our team and our customers is designed to keep you in the know. ‘We are relentless about planning and are constantly creating contingency plans to ensure jobs are prioritised,’ says Antony. ‘If you’re concerned about timeframes or have any questions, please make sure you reach out to your relevant Customer Experience Coordinator or Site Manager for clarification.’
Other building timeframe FAQs
How will my build be planned and scheduled?
Your Site Manager books every element of the construction of your home, with all progress reviewed by the Regional Construction Manager on a weekly basis.
Why are some homes taking longer to build than others?
Once you sign your contract, your builder begins a complex sequence of steps to get you to site as quickly as possible. This includes waiting for land to title and securing council approvals, making design changes to suit your preferences and block, and finding solutions to any site issues that arise. ‘For this reason, two customers may sign their contract on the same day but have completely different build schedules and timeframes,’ explains Chris.
Why can’t Homebuyers Centre provide an exact handover date?
In most cases, it’s hard to provide you with an exact move-in date. While each home is meticulously planned from start to finish, it only takes one supplier, council or labour delay to shift the timeline. ‘The delivery of a home comprises of over 100 individually booked and completed items,’ says Chris. ‘While our team and systems are second-to-none, and we make sure a solution is found as quickly as possible, any issue along the chain can cause a delay. Our promise is that we’ll always keep you updated on the progress of your home.’
Do bigger or more expensive houses get priority?
No. The ABN Group project management software ensures all customers get the same privileges and priority. ‘Homes are progressed on a first come, first served basis from the time the site cut is completed,’ confirms Chris.
What if I have questions about my building timeframe?
Our team are diligently working to make your build journey as enjoyable as possible despite these uncontrollable external challenges. If you have any concerns or questions about building timeframes, please don’t hesitate to contact your Site Manager or Customer Experience Coordinator.