![\"\"](\"https:\/\/static.timesnewsgroup.com.au\/prod\/uploads\/sites\/24\/2022\/08\/Rebecca-Casson-MBAV-199x300.jpg\")
\u201cFor example, the steel price from June 2017 to June 2019 increased by 6.4 per cent,\u201d Ms Casson said.<\/p>\n
\u201cHowever, the steel price from June 2020 to June 2022 increased by 57.2 per cent.<\/p>\n
\u201cThis is almost nine times faster in two years, demonstrating the cost pressures Victorian builders face.<\/p>\n
An MBV statement said that the ABS figures are only an average of the price increases for Melbourne, and that in most circumstances, builders are seeing higher increases more regularly.<\/p>\n
Supply chain constraints, delayed payments from clients and lack of bank support, regulatory reform, rising inflation, energy cost increases, COVID-19 isolation requirements, and skills shortages are other impacts affecting the profitability of Victorian builders and constructors.<\/p>\n
Ms Casson said she feared that some building and construction businesses would exit the industry because market conditions and contract constraints were too demanding.<\/p>\n
\u201cThat’s why MBV has continued to advocate to the Victorian Government to include rise and fall clauses in domestic building contracts,\u201d she said.<\/p>\n
\u201cThis has been implemented in Western Australia, South Australia, and Ireland for commercial contracts.\u201d<\/p>\n
In the meantime, Ms Casson said that MBV encouraged open communication between builders and clients to avoid any building issues or delays.<\/p>\n
\u201cMBV urges all clients to be kind and patient with builders and to understand that some builds will take longer and be more expensive,\u201d she said.<\/p>\n
\u201cEveryone is doing their best in some exceptionally challenging circumstances.<\/p>\n
\u201cMBV remains confident that the building and construction industry will overcome these challenges and continue to be the cornerstone of Victoria’s economy.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
As the building and construction industry continue to bear the burden of COVID related workforce and supply chain impacts on their businesses, many are also in the fight of their lives to stay afloat with contractual obligations leaving them to absorb massive material cost increases on their own. Victorian builders are facing increases in some […]<\/p>\n