There is a new crisis in construction. Clients can lose money. What to do in order not to get into an unpleasant situation

The low-rise construction market has begun to experience problems that many predicted 1.5 years ago. There was a strong decline. He's strong and obvious. But despite significant changes, the decline is still not clear to everyone.

More about the crisis in construction

In construction organizations that remained afloat, despite all the past events, the number of potential and real customers has decreased.
A friend of mine has a large low-rise building firm. He shared information that the number of visitors to their site had halved. The number of initial inquiries and concluded deals also decreased by 2 times. There are no losses in money. Because prices have been increased by about 50% over last year. Here the increase in price compensates for the decrease in customers.

In addition to information from friends, there are other sources. A meeting of builders was held in Moscow the other day. Naturally, we discussed the current situation with them. Almost all specialists working in the construction sector reported a 30-50% decline in hectares compared to 2019. And then I realized that for many builders, the problem is still not visible. They do not notice that there is no such influx of new customers. The old ones keep building, they keep bringing in money, which gives the feeling that everything is in order.

In some "wooden" companies, massive layoffs of workers began. So far, only manufacturers of laminated veneer lumber, roofing materials and blocks can not worry. But this is also temporary. In half a year and they will come to the same outcome.

Why is the construction crisis dangerous for clients, and how not to lose money?

He is dangerous by the bankruptcy of companies. A new wave of bankruptcies begins. But who cares? Clients will find those who have not gone bankrupt.
The fact is that clients can make a mistake and give a large amount of money to a pre-bankrupt company.
All companies are trying to "survive" with their last bit of strength. Therefore, they ask clients to immediately make an advance payment in the amount of 50-70-100 of the total construction amount. But if you pay a lot, then there is a risk of losing just as much. And most likely, if a company insists on contributing 50-100% of the final cost, then this is an important "bell" pay attention to the fact that the company is most likely already pre-bankrupt and in 2022 will cease its Existence.
Pay attention to the amount of the requested prepayment. If it is too large, you should not take the risk and contact this company. Most likely, you will waste money (
A sign of a stable situation is when the amount of the prepayment practically does not matter in the transaction. Hope we get there soon!
In the meantime, we have what we have!

What do you think of the current situation?

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