MBV remains at the forefront of supply shortage and contract advocacy. We want to highlight some recent developments and discussions with Government and other agencies.  

The Residential Construction Costs Working Group established by the current government has MBV joining various other industry stakeholders and the Government to discuss the challenges and solutions needed to protect our industry.  

MBV has had conversations with the government and the opposition about the need for cost escalation clauses in domestic building contracts.  

In our most recent conversation with CAV, they agreed to develop a notice to allow for rise and fall provisions in domestic building contracts over the value of $500,000. We will continue to have conversations to allow such a provision in contracts below this threshold.  

In the commercial sector, we have also had conversations with Minister Danny Pearson on the need for rise and fall clauses in commercial contracts and reducing validity periods for tenders. Other governments worldwide and within Australia, such as Ireland, WA and SA, have all provided precedent to allow for rise and fall provisions in state projects.  

MBV has also developed a Commercial Contract Strategy Working Group over the last four months, with members who have come forward to share pain points and potential solutions so that we can continue to advise Government. We also have regular conversations with stakeholders on how we can better protect subcontractors.  

We will continue to put supply shortages and contracts at the forefront of our advocacy. This will be a critical issue that we will continue to take to both parties leading up to the State Election.    

If you have any questions regarding our advocacy on supply shortages and contracts or would like to provide feedback. Please get in touch with the Policy Team at [email protected].