Supply Chain and Material Shortages Resources
Supply Chain Update
It is evident that State and Federal Government incentives for our industry, such as the successful HomeBuilder Grant, have delivered a much-needed boost in the face of the COVID-19 pandemic.
These incentives have generated billions of dollars in economic activity and helped to secure the viability of thousands of businesses and jobs through this pandemic. However, the international supply chains constraints were unforeseen, and these are now having a critical impact on our industry, which may adversely affect the broader Australian economy if not addressed
Whilst supply issues across our State continue to have an impact on the progress of building works, as well as causing an increase in the costs of some material and trades, it is important to note that Victoria is not alone. Current conditions have seen a reduced capacity in supply chains for building products not only across Australia, but overseas.
We understand from talking to you that the extent of the delays and cost increases vary depending on the contractor, their supplies, and their location, but it is a very real problem across our industry.
In addition to this, theft from building sites because of supply shortages has increased dramatically in some areas over recent times – with significant reports from regional Victoria. We are very concerned about these accounts, and we encourage everyone to be vigilant with their security measures on site.
Some of our members have reported shortages of building tradespeople, such as Carpenters, Apprentice Carpenters, Ceramic Tilers and building trades assistants. Problems filling some positions is resulting in a delay of completing current, longer term and future contracts. If you are experiencing difficulties in this area, please reach out to our careers team who can connect you to our new careers portal which can be found here.
Tools to help you
To assist our members, MBV has produced a range of tools to help you navigate this issue. Please view below:
- Supply Chain Issues Summary booklet - we urge all members to review this document to consider whether the current issues can be managed in client building contracts.
- Contracting framework - a practical solution to tackle the pressing issue of liquidated damages or compensation payments for building jobs delivered late.
- Supply Chain Webinar - MBV members webinar - hear firsthand some of the reasons for the current supply chain shortages crippling the building and construction industry, including a shortage of timber.