Builders welcome stability package as we build our way out of COVID-19

Master Builders Association of Western Australia (MBA WA)welcomed the announcement at the 2022-23 State Budget, which supports the building and construction industry and implements many of the recommendations we presented to Premier Mark McGowan.

MBA WA has been aggressively advocating for the State Government to implement initiatives to assist the $29.3 billion building and construction industry through the current challenges by supporting it to complete existing projects and confidently tender on future critical infrastructure and social housing projects.

If the building and construction industry is to deliver the record $33.9 billion infrastructure investment and assist the state economy in building its way out of the COVID-19 pandemic, then key issues must be addressed.

Meetings with the State Government provided MBA WA a platform to present the government with a suite of recommendations for addressing these challenges, both in the short and medium term.

The building and construction industry has been struggling with supply chain pressures for a long time now, operating in a profitless boom, so we are glad to see the State Government stepping in and implementing recommendations to support the industry with the current cost and cashflow crunch.

Here is a rundown on what the State Budget provided the building and construction industry:

• $30 million financial relief scheme to assist head contractors with rising costs on the Department of Finance and the Department of Communities projects, which face unforeseen supply chain impacts
• Mr McGowan will urge major banks for a flexible approach to progress payments and cashflow support for Western Australian builders
• Rise and fall provisions to be included in future government contracts
• Revising timeframes on a range of government projects to better account for current market conditions
• Education campaign for consumers affected by building delays by the Department of Mines, Industry Regulation and Safety – Building and Energy
• $1.5 million on an overseas marketing campaign to attract construction workers from overseas to assist our local trades and apprentices

More work is needed to support residential builders who have been a driving force in the state economy and non-residential builders working on State Government projects.

State Government procurement must also shift to create a more viable and sustainable construction industry for all, so we look forward to presenting these recommendations shortly.

We are pleased that the State Government has heard our concerns and implemented most of these recommendations. Through the feedback and advice we have received from the industry and our members, we have achieved this advocacy win.

MBA WA will continue to fight on behalf of industry to create a better industry for all. We will continue to provide updates to our members, so if you are not a member and are not receiving our latest updates, become a member today.

Speak to our membership team on 9476 9800 or email membership@mbawa.com.

Q&A with MBA Housing and Construction Director Jason Robertson

The Question

I am about to start building my house and came across the term ‘inclement weather’, which I am unfamiliar with.

How is this relevant to my house getting built?

The Answer

As Game of Thrones said, “winter is coming”.

It leads to an important yet often overlooked matter – there are many, many things that are outside of the builder’s control.

Builders often get blamed or accused of certain things that are completely outside of their direct control. One of them is inclement weather.

It basically refers to rain or abnormal climatic conditions. Understandably such weather can delay work and easily extend the time taken to complete your build.

As inclement weather is out of a builder’s control, an allowance is generally factored into every residential building contract.

What this means is the contract completion date can be pushed out by a set number of days if inclement weather has prevented work taking place.

It can be frustrating for all parties and, as always, the best thing to do is communicate any concerns or questions.

In any given environment, but certainly now in this COVID-19 environment and leading into winter, there will be delays that are unavoidable and unforeseen.

Good luck with the build.

CONTACT Master Builders WA, 9476 9800, www.mbawa.com