Buying a property is one of the biggest financial commitments most people will ever make, and yet, so many buyers are forced to make that decision with barely any reliable information about who’s building their home. In this episode, we sit down with Brad Walters from Equifax to unpack the trust crisis in the Australian construction industry, and more importantly, what’s being done to fix it.

We talk about the lack of transparency in building quality, the rise in insolvencies, and those so-called phoenix companies that keep reappearing under new names. Brad walks us through iCIRT, a national rating system designed to help buyers, insurers, and lenders assess the trustworthiness of builders and developers. It’s based on six core criteria: everything from conduct and character to financial capacity; and honestly, as someone who’s big on due diligence, I found it incredibly encouraging to know this kind of tool exists.

What’s particularly eye-opening is that, according to the data, around 75% of the industry is actually doing the right thing. But it’s that 20 to 25% who cut corners, take shortcuts, or just don’t stick around when things go wrong, that’s where the damage happens. And unfortunately, they drag down the whole industry with them.

If you’re thinking about buying something off the plan, or even just a property built in the last decade, this conversation is a must. We dig into how iCIRT works, the limitations of current protections across different states, and the role of government in holding the industry to higher standards. Tune in and let's get started!

Episode Highlights:

00:00 - Introduction

01:08 - Who is Brad Walters?

02:14 - Understanding the iCIRT tool and why it matters

07:11 - Can buyers rely on builder info outside of NSW?

13:24 - How iCIRT gathers data you can trust

19:33 - Is the rating system voluntary? Who’s avoiding it?

25:12 - When things go wrong: Judging a builder by their response

30:14 - What’s behind the data? Gathering and verifying builder info

34:51 - Protecting yourself from builder insolvency

38:21 - Does more regulation mean higher construction costs?

41:44 - How new builders can still earn trust

45:14 - Is iCIRT a national standard or just a NSW initiative?

48:21 - Can iCIRT ratings actually help off-the-plan buyers?

49:43 - What about suppliers? Expanding accountability beyond builders

51:42 - Contract clauses that can give buyers more protection

52:34 - Beyond trust: What else needs fixing in construction?

55:32 - Brad Walters’ property dumbo

About Our Guest:

Brad Walters is the Head of Product and Rating Services at Equifax Australia, where he leads initiatives to enhance transparency and trust in the construction industry. He oversees the development of tools like the Independent Construction Industry Rating Tool (iCIRT), which assesses the reliability of builders and developers. Brad has advised major banks, insurers, corporations, and government departments on corporate strategy, finance, and risk management. He also serves as a board-appointed director for several Equifax-related entities, contributing to industry-wide innovation and improved business outcomes.

Connect with Brad Walters:

• LinkedIn https://au.linkedin.com/in/brad-walters-775b221
• Find trustworthy building professionals https://www.equifax.com.au/personal/products/iCIRT-ratings
• Get your iCIRT rating and report https://www.equifax.com.au/business-enterprise/products/icirt-construction-industry-ratings

Resources:

• Visit our website https://www.theelephantintheroom.com.au
• If you have any questions or would like to be featured on our show, contact us at: The Elephant in the Room Property Podcast [email protected]
• Looking for a Sydney Buyers Agent? https://www.gooddeeds.com.au
• Work with Veronica: https://www.veronicamorgan.com.au
• Looking for a Mortgage Broker? https://www.alcove.au
• Work with Chris: [email protected]

Enjoyed the podcast? Don't miss out on what's yet to come! Hit that subscription button, spread the word and join us for more insightful discussions in real estate. Your journey starts now!

• Subscribe on YouTube: https://www.youtube.com/@theelephantintheroom-podcast
• Subscribe on Apple Podcasts: https://podcasts.apple.com/ph/podcast/the-elephant-in-the-room-property-podcast/id1384822719
• Subscribe on Spotify: https://open.spotify.com/show/3Ge1626dgnmK0RyKPcXjP0?si=26cde394fa854765

See omnystudio.com/listener for privacy information.