The WA construction sector has been smashed by many challenges of late. COVID-19 has caused large-scale impacts, including skyrocketing materials costs, severe labour shortages, and supply chain disruptions resulting in price and time “squeeze”. Further, in response to the pandemic, the Government here (as elsewhere) has stimulated the economy by funding State and local government projects and introducing various residential building stimulus packages. This created a “perfect storm” of a “profitless boom” with an abundance of work but delivery issues leading to projects being delivered at a loss.
We know from our links to organisations such as the Master Builders Association, the Civil Contractors Federation and discussions with our clients, that the current conditions have led to:
Unfortunately, our “crystal ball” does not suggest these pressures will ease anytime soon, with on going challenges looming for builders this year, including:
Supply chain disruptions
BUT despite these challenges, there are still plenty of opportunities available for those willing to invest their time and energy into building projects throughout WA:
With careful planning and an understanding of all relevant laws and regulations, successful builders can operate within this environment AND importantly make money!
But it’s still tricky, with new and changing laws and ever-present red tape. We want to help you. We will be rolling out a series of articles providing guidance to principals, contractors, and subcontractors on the following topics, all with a focus on delivering quality, sustainable and profitable construction work:
With our collective construction, restructuring, and insolvency experience, we can help you navigate these obstacles and protect yourself when doing business this year.
We understand that working with lawyers may be scary but working with us is not! Jackson McDonald lawyers speak your language, understand the pressures you are facing and the challenges you are dealing with. We are here to help. Give one of our team a call to see how we can help you.