Just one key building input\u2019s cost has spiralled by between 20 and 30 per cent, the CEO of Master Builders SA Will Frogley told InDaily, with the construction industry expecting pricier and delayed home builds.<\/p>\n
Frogley singled out quarry product prices as skyrocketing, saying there were \u201csome legitimate reasons for some price increases, but we just want to make sure there\u2019s no price gouging going on\u201d.<\/p>\n
While the supply of extensively used oil-based PVC pipes was now the industry\u2019s \u201cbiggest supply challenge\u201d.<\/p>\n
\u201cIf you can\u2019t get the pipes in the ground, you can\u2019t pour a slab. That then holds up all the building work after it,\u201d Frogley said.<\/p>\n
\u201cWe\u2019re seeing the unfortunate realities of the laws of supply and demand playing out before our eyes every day.\u201d<\/p>\n
Supply chain issues were largely being driven by the ongoing war in the Middle East, particularly around oil-based products like PVC pipes and petrol.<\/p>\n
Until the supply chain frees up, Frogley said, \u201cyou can expect to see building times increase\u201d.<\/p>\n
\u201cWe\u2019re hoping that clients, whether they be home buyers or private sector clients or government, could be understanding of the situation where there are factors outside of builders\u2019 control at the moment.\u201d<\/p>\n
And potential delays to major state government projects were of concern to the CEO saying \u201cYou\u2019ll certainly see them take longer and probably cost more as well\u201d.<\/p>\n
Frogley said he was taking more phone calls from members seeking advice or a sympathetic ear than at any time since COVID.<\/p>\n
He was concerned the crisis could take a toll on the industry more broadly.<\/p>\n
\u201cPeople are unsure about what to do, because they don\u2019t know how big the impact is going to be and how long it\u2019s going to go on for,\u201d he said.<\/p>\n
\u201cBuilders are resilient. They\u2019re already changing their business models to try and adapt.<\/p>\n
\u201cWith every crisis, there are opportunities to look at the way builders operate and what they can do better.\u201d<\/p>\n
A state government spokesperson said he was not aware of delays to major state government projects like the $3.2bn Women\u2019s and Children\u2019s Hospital and the $15.4bn Torrens to Darlington road project.<\/p>\n
\u201cThe state government continues to monitor global economic conditions and their impact on the construction sector, including supply chain pressures and input cost volatility,\u201d he said.<\/p>\n
\u201cWe continue to engage regularly with industry stakeholders, including Master Builders SA, and will consider their feedback carefully as we assess the situation.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Just one key building input\u2019s cost has spiralled by between 20 and 30 per cent, the CEO of…\n","protected":false},"author":2,"featured_media":390957,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[72,113,61,60],"class_list":{"0":"post-390956","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-economy","10":"tag-ie","11":"tag-ireland"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/390956","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=390956"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/390956\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/390957"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=390956"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=390956"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=390956"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}