1 June 2022

MASTER BUILDERS QUEENSLAND STATEMENT:

QUEENSLAND’S BUILDING MATERIAL & TRADE SUPPLY ISSUES

Builders and suppliers throughout Queensland are continuing to experience severe supply issues across all building materials and trades.

This is having a significant impact on the progress of building works, as well as causing a massive increase in the cost of materials and trades. Deliveries are being significantly delayed and bricklayers, plasterers, carpenters, etc. can be impossible to secure even at significantly higher rates.

The problem first started with COVID-19 supply chain disruptions. At the same time, there was a local surge in demand created by the HomeBuilder grant, a spike in interstate migration, and relaxed mortgage lending criteria, all in an environment of continued low interest rates. This was further exacerbated by a global surge in demand for construction materials, particularly timber and steel products, and international shipping constraints. Two years on and COVID-19 isolation requirements continue to disrupt construction schedules in unexpected ways.

Next, there is the unanticipated surge in demand following the east coast floods. Insurance work is moving to the ‘front of the queue’ by offering higher prices for trade work. There are reports of some trade prices tripling overnight.

Russia’s invasion of Ukraine has further disrupted international supply chains. Directly impacting our industry is the new 35 per cent tariff for engineered wood products (EWP) sourced from Russia and Belarus. Approximately 40 per cent of Australia’s EWP (used in flooring systems and roof trusses) is sourced from Russia or Belarus and alternative sources are limited due to elevated demand worldwide.

Builders are facing very real problems right across the industry which is expected to get worse before we see any improvement.

The Queensland Building and Construction Commission (QBCC) has recognised the problem and introduced the Accelerated Builder – Consumer Dispute Framework as a temporary independent mediation service to help builders and consumers find a way through the current challenges. More information is available from their website – www.qbcc.qld.gov.au.

While we are working hard on trying to find a solution, the reality is that delays and price hikes are unavoidable and will need to be factored into build times and contracts. We urge contractors to work closely with their clients to best navigate these challenging times.

Paul Bidwell
Master Builders Queensland CEO

Source: https://www.mbqld.com.au/__data/assets/pdf_file/0019/210682/MBQ-Statement-Material-and-Trade-shortages-June.pdf