Summary:
Builders must own their decisions. But suppliers who incentivise volume at any cost, promoting trades based on how much product they move not the quality they deliver, are making it harder for the industry to lift its standards. It’s time to ask what happens to the good builders quietly doing the right thing.
No one in the building industry should be under any illusion. Builders are responsible for what goes on site.
The choices they make, the products they specify, the trades they engage, the standards they enforce, define their reputation. When corners are cut, when poor choices are made, builders wear the consequences. Defect lists. Client complaints. Brand damage.
But there’s another side to this story that isn’t being called out enough.
In too many cases, suppliers are actively making it harder for good builders to do the right thing.
When Suppliers Incentivise Volume Not Quality
The supply chain’s role in this dynamic is clear.
Suppliers offer rebates, marketing dollars and incentives not just to builders but directly to trades, with those incentives tied overwhelmingly to one thing, product volume.
The more product moved the greater the reward. The more stock installed the higher the rebate.
And it doesn’t stop there.
Suppliers then promote these high volume trades to builders. They’re described as preferred partners. They’re recommended not on the basis of defect rates or workmanship but because they move stock.
Builders, under commercial pressure, trust these recommendations. And soon enough, they’re dealing with the fallout.
What Happens on Site
The consequences are predictable.
Trades focused on volume are driven to install as quickly as possible. Materials are used in applications where they may not belong, simply to shift stock. Products are pushed onto site without proper technical support or training.
When defects arise it’s the builder left to handle the fallout. The supplier has sold the product. The trade has hit its incentive target. But the builder’s reputation and the client’s experience are what suffer.
And What About the Good Builders
This is the uncomfortable question that rarely gets asked. What happens to the good builders in this system
What about the low volume builders who get out there every day and do the industry proud The ones who work quietly, carefully, building homes designed to last for generations, homes that won’t just stand for 30 years but for 100
These are the builders who should be looked at and rewarded. Yet too often, they’re overlooked. Their trades are squeezed out by high volume operators. Their focus on quality becomes a commercial disadvantage in a system that values speed over care.
It’s these builders who suffer most in a supply chain that rewards volume at any cost.
What Suppliers Should Be Doing
Suppliers need to ask themselves a hard question. What kind of industry do they want to support
Because right now, too many suppliers are fueling a race to the bottom. They are
- Promoting trades for their sales figures not their quality
- Structuring incentives that reward volume not defect free work
- Turning a blind eye to poor installs so long as the sales targets are met
If suppliers want to be part of building a better industry it’s time for change.
Suppliers should
- Tie incentives to long term performance not short term sales
- Build preferred partner programmes based on workmanship not just volume
- Provide proper training and technical support to ensure products are installed correctly
- Actively support builders who choose care over speed
Builders Still Own Their Decisions
Builders ultimately control what happens on their sites. The most respected operators are those who set high standards, choose trades for skill not sales numbers, and partner with suppliers who share their values.
But the supply chain should be helping not hindering those builders.
The Industry We Should All Want
Australia’s home building industry faces enough challenges. The pressure on affordability. The complexity of regulation. The fight to restore trust.
We don’t need a supply chain that makes it harder for the good builders, the ones who build homes that last, to succeed.
It’s time for suppliers to rethink how they reward and promote the trades and builders they work with.
It’s time to ask, are we helping build better homes or just pushing more product
And it’s time to ensure that the builders who put quality first, the ones who make us proud, are the ones who get the support they deserve.
If you’ve seen this dynamic at work or if you’re one of the builders striving to do it right we want to hear your story. Let’s raise the bar together.
The Good Builder LinkedIn | [email protected].
0 Comments