Cashflow issues are being blamed for building businesses falling over.

The country's construction crunch may start to snowball, with more building businesses expected to fail.

Bayside Designer Homes is the latest, leaving nine Auckland housing sites unfinished.

AUT Professor of Construction Management John Tookey told Kate Hawkesby the industry uses borrowed money to do all the work.

He says as interest rates go up, it gets harder and harder and then payments get delayed, then you end up with companies struggling with cashflow.

LISTEN ABOVE

Cashflow issues are being blamed for building businesses falling over.
The country's construction crunch may start to snowball, with more building businesses expected to fail.
Bayside Designer Homes is the latest, leaving nine Auckland housing sites unfinished.
AUT Professor of Construction Management John Tookey told Kate Hawkesby the industry uses borrowed money to do all the work.
He says as interest rates go up, it gets harder and harder and then payments get delayed, then you end up with companies struggling with cashflow.
LISTEN ABOVE

A fresh and intelligent start to your day - catch the very latest international and domestic news developments, sport, entertainment and business on Early Edition with Ryan Bridge, on Newstalk ZB.

A fresh and intelligent start to your day - catch the very latest international and domestic news developments, sport, entertainment and business on Early Edition with Ryan Bridge, on Newstalk ZB.