Strengthening financial resilience in Victoria’s residential building industry

What we are doing and why

The Building and Plumbing Commission (BPC) is supporting research by RMIT University to develop evidence-based financial literacy training for residential builders to strengthen business resilience and reduce the risk of insolvency.

This project builds on findings from previous BPC-supported research, which identified clear early warning indicators of financial distress preceding insolvency and highlighted gaps in financial literacy and financial management practices as key contributors to business failure. The project seeks to better understand how targeted financial capability training can improve financial management practices among residential builders and help them manage financial pressures more effectively.

The research will identify financial capability gaps within the residential construction sector and examine common financial management challenges faced by builders, including cash flow management, project financial planning, pricing strategies, and financial risk management. It will also explore best-practice financial literacy training approaches used in other industries and jurisdictions to determine the most effective ways to build small business financial capability.

Using these insights, the project will develop a practical financial literacy training framework tailored specifically to residential builders. Through industry consultation and stakeholder engagement, the training concepts will be tested and refined to ensure they are practical, relevant and suited to real-world building industry conditions. By identifying effective training content and delivery methods, the project aims to create scalable resources that can support stronger financial management practices across Victoria's residential construction sector.

The research is being led by Associate Professor Malindu Sandanayake and is supported by the BPC through a research grant awarded in 2026. In-kind support is being provided by the Housing Industry Association, Master Builders Victoria , and researchers from Victoria University and The University of Melbourne .

What difference this will make

By supporting this research, the BPC is helping to build a more financially resilient residential building sector.

The project will develop evidence-based financial literacy resources that support builders to strengthen their financial management capabilities, improve business resilience and reduce the risk of insolvency. The findings will also provide a foundation for future industry training, accreditation programs and other initiatives aimed at supporting long-term business sustainability.

The project will provide practical insights into the financial challenges faced by residential builders and identify effective ways to strengthen financial capability across the industry. These insights will help regulators, industry organisations and training providers better targeted support and improve outcomes for builders and consumers alike.

A key outcome will be a suite of pilot-ready prototype training resources that can be tested and refined with industry stakeholders. These may include sample training modules, facilitator guidance, builder-facing checklists and templates, practical case studies, and recommendations for future delivery pathways. Together, these resources will provide a strong foundation for the development of future training programs that support better financial decision-making and stronger business performance across the residential building sector.

What we have achieved so far

The research commenced in October 2026 and is due for completion in 2028.

Related research

This research complements other research the BPC is supporting to reduce harms caused by insolvency and phoenix activity in the construction sector, including:

• Developing measures to combat insolvency in the residential construction industry
• Insolvency in the construction industry
• Towards smart contracts and smart finance in construction