KDC BUILDERS & KEE DESIGN CONSTRUCT
MBA Media Releases & News
Disclaimer: It is the responsibility of individuals to carry out their own due diligence in relation to all information and articles below;
"MBA - Media Release" May 2022
A MESSAGE FROM MASTER BUILDERS WESTERN AUSTRALIA BUILDING MATERIAL PRICE INCREASES, TRADES AND LABOUR AVAILABILITY
This is a message for clients of builders who are being impacted by cost increases and delays on their projects.
This message is intended to provide important information to clients on the current challenges facing the building and construction industry, which has been a result of factors outside the builder’s control including massive price spikes, shortages of key building materials, decline in building material availability, skilled and unskilled labour shortage, global supply chain failure, freight and logistics issues and hard border restrictions.
The last two years have been exceptionally difficult for the building and construction industry, and their clients, both residential and commercial as collectively we navigate living and working throughout the COVID-19 global pandemic.
These factors are directly linked to the COVID-19 pandemic as State and Commonwealth Governments have relied on the building and construction industry to support the local and national economy. Although these decisions have saved jobs and supported the community, it has also created an increase to activity, which has had a marked impact on the building and construction industry with many projects experiencing delays, but also builders cannot absorb the irregular cost impacts currently being felt.
In addition, further demand has been placed on the industry as we rebuild communities impacted by natural disasters including Tropical Cyclone Seroja and bushfires.
In this ever-connected world, we are anticipating that the recent floods in Queensland and New South Wales will place additional pressure on industry, as will the current conflict in Ukraine.
These issues as a collective have created a ‘perfect storm’ for the building industry and their clients.
The current environment we find ourselves in is unprecedented, as we continue to build through the pandemic. The level of price increases reported by our members represent the largest period of price escalation seen in recent times.
UPDATE: During March 2022, building product costs increased at their fastest pace since 1980.
Across Australia, the cost of materials used in house building increased by +4.2 per cent during the March 2022 quarter and are now +15.4 per cent higher than a year ago.
The pace of increase was similar across all six capital cities for which we have figures.
Over the year to March 2022, the sharpest price increases affected
• Reinforcing steel (+43.5 per cent)
• Steel beams/sections (+41.5 per cent)
• Structural timber (+39.2 per cent)
• Plywood and board (+29.8 per cent)
• Electrical cable and conduit (+27.1 per cent)
• Plastic pipes and fittings (+26.5 per cent)
• Copper pipes and fittings (+25.7 per cent)
• Terracotta tiles (+21.5 per cent)
• Metal roofing and guttering (+19.9 per cent)
• Insulation (+14.0 per cent)
These are cost increases that may completely erode profit margins on projects unless the builders pass these costs on to clients, which will be dependant each individual project and contractual arrangements in place.
In many circumstances, suppliers and subcontractors are not able to confirm prices for builders until the materials are about to be supplied. With ongoing availability issues, it is difficult for builders to stockpile or order products too far in advance. Whilst it is certainly not ideal, prices may not be able to be confirmed for some time due to these delays.
It is important that you speak openly and honestly with your builder. Confirm that they understand what your budget is. If you are concerned about affording your build, discuss compromise options with your builder, they will listen and will work with you.
We understand the challenges our members are facing, and the challenges that you; our members clients face too.
We hope this provides some useful information which explains the external pressures currently facing your builder and the building and construction industry, and you, as the client.
Yours sincerely
John Gelavis
EXECUTIVE DIRECTOR
Building & Energy Western Australia
Media Release Master Builders WA calls for action to address skills crisis and end to vaccine mandate March 17, 2022
Master Builders Association of Western Australia is calling on the State Government to remove without delay the Restrictions on Access Directions (mandated vaccinations) for the building and construction Industry. MBA WA is also calling on the State Government to facilitate the entry of skilled overseas workers into Western Australia to address the significant skills shortage hammering the WA building and construction industry.
The state borders are now open, and WA has one of the highest vaccination rates in the country. Like other sectors, the building and construction industry complied with the Public Health Directions in getting vaccination rates to the highest possible levels, but it’s now time to get on with business and we need our full workforce back.
The State and Commonwealth Government measures introduced in 2020, to build a strong pipeline of work has been important in supporting employment, the economy and has done its job, however through the loss of skilled trades from the mandatory vaccination laws, border restrictions and lack of overseas migration, we simply do not have the workforce to fulfil much of the ongoing demand. Understandably, people want their homes, their commercial project finished; but there simply isn’t enough people in the industry to keep up with the demand of work out there, and industry is facing unprecedented challenges with material shortages and price escalations in addition to the labour crisis.
If this trend continues, with more price increases and labour shortages, there will be more contracts and more that are completed with no profit, which will impact all building companies and their capacity to stay profitable.
Along with suffering serious skill shortages, the industry has been hit by massive price escalations, material and supply shortages and global supply chain disruptions due to the COVID-19 pandemic, with builders waiting weeks and months for critical building materials, which is creating the perfect storm having the potential to cause a wave of insolvencies.
Builders have seen tradies leaving the industry as a direct result of the vaccination requirements, with some reporting over 10% loss of their workforce. These are highly valued subcontractors, who have decided that this requirement is not for them.
Media Release Master Builders WA calls for action to address skills crisis and end to vaccine mandate March 17, 2022 Tradies have investigated other areas to replace their income which meant vacating the industry, leaving building companies high and dry, which impacts severely in regional WA, where choice can be very limited.
Supply chains continue to be disastrous, which has been further intensified by flooding in Queensland and New South Wales being described as one of Australia’s worst-ever natural disaster, which compounds a national industry already severely capacity constrained.
Price increases on materials outside the builders’ control has created a situation with potentially dire consequences, especially for those under certain private or government contracts whereby the opportunity to pass on cost increases are limited.
“If changes are not made immediately, then it is very likely hundreds of builders in WA are at serious risk of irreversible losses. If this crisis does occur, it will leave tens of thousands of employees, suppliers and sub-contractors with significant losses, and builders seeing their businesses, including many that are family owned and operated no longer in existence.
“Builders are now facing even further cost increases, this time from the transport markets as the price of fuel skyrockets because of the Russia-Ukraine conflict.
“MBA WA is calling on the State Government to allow those able to work in the industry to return to work, on residential and commercial projects with minimal restrictions, as the whole intent of vaccination was to ensure critical sectors could remain operational throughout high case load and very high case load environments of COVID-19.
“Whilst we acknowledge the Premier’s commitment to addressing the critical worker definition once WA reaches lower caseloads, we feel it is critical to tackle the skills shortage and the vaccine mandate.
“Homes under construction could remain incomplete if builders are unable to complete the contracted works, commercial projects stalled or worse will put the entire building industry at serious risk of collapse, so action is needed now” says Executive Director, John Gelavis.
For more information please contact:
John Gelavis, Executive Director – W: 9476 9800 M: 0428 884 392
Reney Omar, Communications Coordinator – M: 0477 225 905
"Department of Mines, Industry Regulation and Safety – Buiding and Energy"
May 2022
"Building A Home In Challenging Times"
Media Release Master Builders WA calls for action to address skills crisis and end to vaccine mandate March 17, 2022
Master Builders Association of Western Australia is calling on the State Government to remove without delay the Restrictions on Access Directions (mandated vaccinations) for the building and construction Industry. MBA WA is also calling on the State Government to facilitate the entry of skilled overseas workers into Western Australia to address the significant skills shortage hammering the WA building and construction industry.
The state borders are now open, and WA has one of the highest vaccination rates in the country. Like other sectors, the building and construction industry complied with the Public Health Directions in getting vaccination rates to the highest possible levels, but it’s now time to get on with business and we need our full workforce back.
The State and Commonwealth Government measures introduced in 2020, to build a strong pipeline of work has been important in supporting employment, the economy and has done its job, however through the loss of skilled trades from the mandatory vaccination laws, border restrictions and lack of overseas migration, we simply do not have the workforce to fulfil much of the ongoing demand. Understandably, people want their homes, their commercial project finished; but there simply isn’t enough people in the industry to keep up with the demand of work out there, and industry is facing unprecedented challenges with material shortages and price escalations in addition to the labour crisis.
If this trend continues, with more price increases and labour shortages, there will be more contracts and more that are completed with no profit, which will impact all building companies and their capacity to stay profitable.
Along with suffering serious skill shortages, the industry has been hit by massive price escalations, material and supply shortages and global supply chain disruptions due to the COVID-19 pandemic, with builders waiting weeks and months for critical building materials, which is creating the perfect storm having the potential to cause a wave of insolvencies.
Builders have seen tradies leaving the industry as a direct result of the vaccination requirements, with some reporting over 10% loss of their workforce. These are highly valued subcontractors, who have decided that this requirement is not for them.
Media Release Master Builders WA calls for action to address skills crisis and end to vaccine mandate March 17, 2022 Tradies have investigated other areas to replace their income which meant vacating the industry, leaving building companies high and dry, which impacts severely in regional WA, where choice can be very limited.
Supply chains continue to be disastrous, which has been further intensified by flooding in Queensland and New South Wales being described as one of Australia’s worst-ever natural disaster, which compounds a national industry already severely capacity constrained.
Price increases on materials outside the builders’ control has created a situation with potentially dire consequences, especially for those under certain private or government contracts whereby the opportunity to pass on cost increases are limited.
“If changes are not made immediately, then it is very likely hundreds of builders in WA are at serious risk of irreversible losses. If this crisis does occur, it will leave tens of thousands of employees, suppliers and sub-contractors with significant losses, and builders seeing their businesses, including many that are family owned and operated no longer in existence.
“Builders are now facing even further cost increases, this time from the transport markets as the price of fuel skyrockets because of the Russia-Ukraine conflict.
“MBA WA is calling on the State Government to allow those able to work in the industry to return to work, on residential and commercial projects with minimal restrictions, as the whole intent of vaccination was to ensure critical sectors could remain operational throughout high case load and very high case load environments of COVID-19.
“Whilst we acknowledge the Premier’s commitment to addressing the critical worker definition once WA reaches lower caseloads, we feel it is critical to tackle the skills shortage and the vaccine mandate.
“Homes under construction could remain incomplete if builders are unable to complete the contracted works, commercial projects stalled or worse will put the entire building industry at serious risk of collapse, so action is needed now” says Executive Director, John Gelavis.
For more information please contact:
John Gelavis, Executive Director – W: 9476 9800 M: 0428 884 392
Reney Omar, Communications Coordinator – M: 0477 225 905
"MBA - Media Release" 19 June 2021
Home Builder Construction Time-frame Extended
The Federal Government has announced the expansion of housing programs that are helping more people to own their first home provides and strengthening economic recovery.
“The release of 30,0000 new places in the highly successful First Home Loan Deposit Scheme, New Home Loan Guarantee and the Family Home Guarantee will boost the economic security of thousands more people, including single parents, and continue to accelerate the recovery,” Denita Wawn, CEO of Master Builders Australia said.
“We know that the deposit gap is the greatest barrier to people owning their first home. Right around the country we are witnessing the success of the Government’s housing policy measures to help people to bridge this gap,” she said.
“The Family Home Guarantee will mean that thousands of single custodial parents, the vast majority of whom are women, can access the life-changing benefits of homeownership. We want to this measure passed by the Parliament without delay,” Denita Wawn said.
“Providing more people with the support to make the step up to owning a home is also fundamental to a stronger economy which benefits the whole community,” she said.
“Lifting the price caps for these schemes will also make them more accessible to more people and that’s a very good outcome,” Denita Wawn said.
“With every 1 dollar spent in building new housing resulting in 3 dollars benefit for the wider economy, it is clear why the Federal Government’s measures are having such a strongly positive effect,” Denita Wawn said.
"MBA - Media Release" 17 April 2021
HomeBuilder Grants
Thousands of people can now be sure that they will receive HomeBuilder grants with the Federal Government’s extension of the construction start date.
Denita Wawn, CEO of Master Builders Australia said, “The scale of the HomeBuilder success - more than 120,000 HomeBuilder applications have created huge pressure on the supply chain with Master Builders Australia’s survey of the industry showing that 70% of builders are being hit by delays and cost increases for key trades and building products.”
“This also created the risk that thousands of HomeBuilder applicants could miss out on the grants because builders could not meet the construction start date requirements,” she said.
“Thanks to this move by the Federal Government, thousands of HomeBuilder applicants around the country can now breathe a huge sigh of relief,” Denita Wawn said.
“This will help builders and tradies maximise and manage the extraordinary success of HomeBuilder,” she said.
“The Federal Government showed strong leadership to introduce HomeBuilder when Covid lockdowns meant thousands of builders and tradies faced a valley of death with no forward work,” Denita Wawn said.
“Thanks to HomeBuilder those businesses and jobs were saved. It’s been one of the most effective government interventions ever,” Denita Wawn said.
"MBA - Media Release" 29 November 2020
KEY CHANGES ANNOUNCED TODAY BY THE FEDERAL GOVERNMENT
Today, the 29 November 2020, the Government announced an extension to the HomeBuilder program to 31 March 2021 and have noted the following changes:
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A $15,000 grant for building contracts (new builds and substantial renovations) signed between 1 January 2021 and 31 March 2021, inclusive.
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An extended deadline for all applications to be submitted, including those applying for the $25,000 grant and the new $15,000 grant. Applications can now be submitted up until 14 April 2021 (inclusive). This will apply to all eligible contracts signed on or after 4 June 2020.
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An extension to the construction commencement timeframe from three months to six months for all HomeBuilder applicants. This will apply to all eligible contracts signed on or after 1 January 2021, but will also be backdated and apply to all contracts entered into on or after 4 June 2020.
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An increase to the property price cap for new build contracts in New South Wales and Victoria to $950,000 and $850,000, respectively, where the contract is signed between 1 January 2021 and 31 March 2021, inclusive.
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The existing new build property price cap of $750,000 will continue to apply in all other States and Territories.
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A change in licensing requirements and registration for builders and developers, as below:
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Where an eligible contract is signed on or after the 29 November 2020, the builder or developer must have a valid licence or registration before 29 November 2020.
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Where an eligible contract is signed before 29 November 2020, the builder or developer must have a valid licence or registration before 4 June 2020.
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Other than the above, the existing program criteria applies. That is, the other existing eligibility criteria remains in place and the $25,000 grant will still be made available for eligible contracts signed on or before 31 December 2020.
"MBA - Media Release" 20 October 2020
Premier boots builder boost goal in grand final week
Premier Mark McGowan’s announcement today to extend the construction period for the highly successful Building Bonus stimulus by six months has not only kicked a goal but delivered a best on ground performance in AFL grand final week for all West Australians. Master Builders WA executive director John Gelavis said the announcement today was critically important because the $24billion building and construction industry is about to enter one of its busiest periods due to the massive $27.1billion infrastructure and capital works program announced in the State Budget and the spike in home building work commencing in the next few months. “This extension will allow for the levelling of the construction timeframe, which will support the industry in being able to build the highest quality homes in the required timeframes and do this in safest possible way,” Mr Gelavis said. “When we pitched the idea to government in March this year, we were delighted to see how successful the Building Bonus program had become in building a pipeline of work for the industry. However due to the tight timeframe our members raised concerns around safety and the availability of subbies, so we are glad the Premier has listened to our calls for an extension and acted. “The housing industry in WA has declined more than 60 per cent since 2014 to disastrous levels and was too important to the state economy to be allowed to collapse under the weight of the COVID-19 pandemic. This package has rescued many businesses such as mum and dad builders, large builders, subbies, manufacturers, suppliers and apprentices and will keep thousands of people in work and thousands of West Australian families financially secure. “We now have a need for speed from many of the support agencies to make this truly successful, including local governments to ensure building and planning approvals, land titling and finance applications are dealt with quickly. “The State Government has really backed the West Australian building and construction industry to not only remain operational but be a key driver in rebuilding the economy and creating economic activity for the state. “A strong building industry means a strong WA.” For more information please contact:
• John Gelavis, Executive Director – w: 9476 9800 m: 0428 884 392
Government of Western Australia Media Release:
Building Bonus extension to provide WA job certainty - 20/10/2020 9:30 AM
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More Western Australians to access $20,000 Building Bonus grants
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Homebuilders now have an additional six months to commence site works
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Pipeline of construction work to continue through to 2022, providing certainty to industry
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Key component of $5.5 billion WA Recovery Plan
Western Australia retains the title as most affordable state for buyers and tenants 4 June 2020
REIWA PERTH PROPERTY AND WA REAL ESTATE (CURRENT TRENDS)
https://reiwa.com.au/about-us/news/
MBA MEDIA RELEASE HOMEBUILDER & BUILDING BONUS STIMULUS UPDATE 17 July 2020
FEDERAL HOMEBUILDER PACKAGE
Since the announcement of the Federal Homebuilder package, Master Builders has been constantly engaged with the Federal Treasury Department (Treasury) on raising questions with the criteria to provide clarification for our members and maximise the benefits of the HomeBuilder stimulus measures. Many questions have been raised with Treasury on various scenarios and circumstances. Key issues included the timing arrangements, valuations and financial thresholds, defined terms, and the applications processes. Questions raised by Master Builders can be accessed below;
Treasury has responded, answering many of our questions. The website has been updated and the Frequently asked Questions can be found by pressing the link below; Several key points have been clarified and appropriate changes made;
https://treasury.gov.au/coronavirus/homebuilder