Global fuel and supply shortages, soaring prices, worker availability and a third consecutive La Niña wet weather system have caused a perfect storm in the construction industry.
The effects are being felt in Corangamite Shire as Council perseveres with its capital works program.
Council Director Works and Services Brooke Love said the conditions had affected council’s ability to deliver projects in a timely manner.
“Delays with Council’s project delivery are being felt at the moment and are expected to continue due to ongoing material availability and supply, contractor and consultants availability and weather conditions,” Mrs Love said.
“Council prides itself on delivering quality infrastructure for the community. In the past we have been able to do this relatively quickly because material supplies were unhindered and local contractors didn’t have such a large works program.
Mrs Love said a large number of additional works funded by COVID-19 stimulus programs would have significant long-term benefits, but also contributed to the current delays.
“Over the past two years we have delivered an additional $4.2 M in community infrastructure with funding from the Federal Government’s Local Roads and Community Infrastructure Program.
“Across Australia there was $1.5 B of funding for projects under the program. This level of investment, along with the impacts and constraints of the pandemic, will have lasting impacts on the construction industry.”
“There is a shortage of raw materials and backlogs in orders once stocks are used. As one example, there is a three-month wait on concrete products. In order to accommodate lack of availability we have amended culvert designs in our road projects”
“Rising costs have impacted contractors’ appetite to tender for works. Many have been left out of pocket by the climbing prices. It has caused many to question whether they are able to pass price increases on to their clients, like Council, and if they are interested in doing the works at all.
“Availability of workers has meant works have had to be scheduled around when contractors had enough staff available to complete the jobs.”
Mrs Love assured the community Council was doing its best to deliver its capital works program with as minimal impact on community use as possible.
“Unfortunately, availability of materials and the La Niña weather event are out of our control. We know it’s frustrating and we thank the community for their patience as we do the best we can with the resources we have available.”
Caption: Simpson Bowling Club (pictured during construction earlier this year) had to wait three months for roof trusses then had to accommodate the workloads of local contractors. It is only one example of the projects delayed by supply issues dogging the construction industry.
