Financial Gain

Divya Mehta, Deputy Managing Director of Decode Construction, explains that being rated has added significant value and credibility for Decode in the market. “We believe iCIRT has added to our bottom line because the product is positioned at the right time in the market to be able to deliver transparency in the industry that needs it the most.” 

The 2024 Equifax consumer survey found that 3 in 4 Australians are willing to pay a price premium - upward of 3% - for projects delivered by trustworthy builders and developers. For a builder with a $4M annual turnover, even a 1% pricing advantage offers a five-fold return on the cost of getting iCIRT rated, significantly boosting profitability. Unlike untrustworthy operators, rated businesses can protect their pricing and avoid competing solely on cost.

Increased buyer trust

The Sydney Morning Herald reports that property buyers are now walking away from businesses who lack an iCIRT rating: “New apartment buyers are shunning unit blocks by builders and developers who have been refused, or have declined to apply for, a quality rating.”

Builder and developer, Helm, shared in the article that there has been a large number of people asking about iCIRT and being aware of it at their last two project launches. “We’ve certainly noticed people’s attitudes changing towards the industry in the two years it’s been around,” said Mark Monk, Helm’s Managing Director.

Among prospective property buyers familiar with iCIRT, 81% view the construction industry positively, and 88% of those planning to purchase a home or investment property in the next five years are likely to require independent due diligence and ratings.

Market advantages

Mark Monk explains why some banks are favouring iCIRT rated builders and developers: “The iCIRT assessment delved into every aspect of our company, from financials to the credibility of our team, our procedures and systems.

“All of the things that go into making a good company a great company - iCIRT recognises those things - so it’s incredibly important for the good companies in our industry to be able to separate from the remainder.”

An iCIRT rating provides data-driven evidence for insurers, financiers and regulators looking to ascertain a company’s stability and credibility. In 2022, the Australian Financial Review noted that financiers expect the differences between rated and non-rated players to affect capital pricing over the next two-three years as the system gains traction. Nick Raphaely, co-CEO and co-founder of alternative investment platform, AltX, was quoted as saying: “Once the certification process starts to gain mainstream traction, it will be a game changer for the landscape, giving enormous confidence to financiers and investors.”

Nearly two years later, iCIRT rated businesses are already benefiting from faster access to funding and insurance, better tendering opportunities and pricing efficiencies. According to Stamford Capital’s 2024 Real Estate Debt Capital Markets Survey, more than a third of funders now incorporate iCIRT ratings into their decision-making, with 19% planning to follow suit in the next six months and 43% have rejected loan applications with no ratings or poor ratings. 

Join the iCIRT Register of rated professionals to establish trustworthiness as your competitive advantage.