The view of the housing industry association of Australia is that as long as the builder can provide legal evidence to prove that the project delay is caused by the procurement supply chain, the builder can extend the delivery date of each stage at its discretion to avoid penalties caused by construction delay.
At present, the price of each quotation has increased by 5%.
Paul Bidwell, vice president of Queensland Architects Association, said: Queensland’s construction industry is entering a “unprofitable prosperity era”.
Paul Bidwell says builders “have no choice” because they have to absorb rising costs out of their own pocket – which will eventually flow to homeowners.
Paul Bidwell is worried that many builders are experiencing non-profit prosperity.
According to the latest survey results of masterbuilders, almost all 15 categories of products are facing trade supply pressure.
In addition, some well-known large builders have also been impacted, because their work is mass production, and mass production will not bring profits.
Michael Roberts, Queensland executive director of the housing industry association of Australia, said builders may not be able to provide accurate quotations in the coming months because they do not know the price of building materials after November.
He said he was worried that the rising material costs would not put great pressure on the whole industry as expected by some people in the industry.
Blake Lanham, a local builder, said his company lancon manages 22 homes on 16 construction sites.
For some builders, non-profit construction may be the best result, because it can maintain their whole company’s continuous operation during the epidemic period and wait for the economic rebound after the epidemic.
He said that one solution to reduce the financial burden of HIA builders is to allow builders to extend the delivery time of each stage to avoid late payment fines.
The biggest difficulty is to purchase wood, windows, steel products and roof supply.
With the increasing demand for new houses in the market, builders are worried about problems such as supply shortage, construction delay and soaring construction costs.
Data show that the cost of timber, frames and trusses in Queensland has increased by about 75% since the beginning of this year (compared with last year), and may increase by another 20% to 25% from November.
He commented: since the beginning of this year, we have seen that the cost of wooden frame structure has increased by 15% to 20% every month, and the validity period of quotation has been shortened from 60 days to about 7 days.