IPEX has set its sights on its mission to safeguard against the threat and damage of insolvency and non-payment in Australia’s $360 billion construction industry.

Insolvency is more common in construction than in any other sector in Australia, hitting new highs in the 2022-23 financial year with its threat looming large over Australia’s 834,000-strong subcontractor workforce who are impacted.

“Insolvency and financial mismanagement is rife in the construction sector. I know this because I was one of the statistics. I’ve seen first-hand the devastation insolvency causes not only for the entire industry, from lenders to developers, builders, suppliers and ultimately the subcontractors who all face varying degrees of financial strain,” IPEX founder Jake Porteous says.

“Builders join the industry because they’re passionate about and skilled in their trade, but when they’re suddenly dealing with multi-million-dollar projects, small problems escalate, arrears build and, without intention or unscrupulous behaviour, companies go under. We need industry-wide, attitudinal change. Without that, the issue worsens, and the solution becomes more costly.”

Expanding sixfold in the past 12 months, IPEX is an industry-leading payments platform founded by industry stalwarts Chris Strode and Jake Porteous that protects project funds and offers enhanced payment security to the construction industry.

The IPEX framework ring fences funds intended for a specific project, ensuring that progress payments can be used only to pay approved subcontractors and suppliers linked to that project.

IPEX also provides developers with visibility over who has been paid and when without requiring builders to share commercially sensitive information. Through IPEX, developers, lenders, subcontractors and suppliers receive greater trust and security over funds and greater protection against insolvency and non-payment.

IPEX benefits builders too, strengthening the position of any financially secure builder, and creating an environment in which many of the existing payment practices that put builders under significant financial stress are no longer required. This improves builder liquidity, from modified security requirements to the provision of cash in advance for site establishment and certain supplier deposits.

Jakes says its IPEX’s vision is to become the industry standard for payments in construction and help protect Australia’s construction future, work closely with the entire ecosystem, from trade bodies and unions to governments and policymakers to improve trust and enact genuine positive change and support the entire supply chain.

Currently, IPEX has over $600 million in projects under management on behalf of clients such as Winim, Spyre Group, Fortis, INGWE Capital, MAB, Kervale and Nash Management, with a positive intent pipeline of over $3 billion over the next 12 to 24 months.

IPEX provides advanced payment security, full financial oversight and accountability, aids QBCC/BIF compliance, enables users to manage multiple projects from a single dashboard and, ultimately, increases sub-contractor, supplier, developer and builder confidence.

Today, IPEX has over 1,000 users nationwide.