The construction industry has a reputation as the Wild West, but operating in such a high-stake, low-margin environment after years of turmoil is proving almost impossible.

Bidding on projects with expected negative margins and absorbing price fluctuations in fixed-price contract environments, on top of labour shortages, rising interest rates, inflation and terrible weather, have all affected the industry.

Even the biggest builders, such as Hutchinson, with an 80 per cent pre-tax profit drop this year, has shown loss-making projects are the norm.