Master Builders Victoria (MBV) has welcomed a Victorian Government report on building and construction material shortages and its key recommendations.

Since early 2021, MBV has continually raised awareness of supply shortage impacts on the building and construction industry.

At the request of MBV, the Victorian Government last year asked Commissioner for Better Regulation and Red Tape Commissioner, Anna Cronin, to investigate the issue of building and construction material shortages.

A survey last year on material shortages by Master Builders Australia revealed that 98 per cent of Victorian builders had been affected by delays and price rises, with wait times for some materials blowing out to six months.

MBV welcomes the release of Ms Cronin’s report today and the adoption by the Victorian Government of nine of ten key recommendations.

We know this report will not be a silver bullet to many of the supply challenges facing Victoria’s builders.

However, MBV is hopeful that the report's release today and the recommendations adopted will assist our sector in the future.

These recommendations will go some way to help relieve pressure on the building and construction industry in the medium to long term.   

However, MBV is disappointed that the Victorian Government will not implement the recommendation on cost escalation clauses. We understand that caution must be taken about the potential risks for consumers, but Victorian builders are consumers as well, and it is vital that everyone works together in these unprecedented times.

MBV will continue to advocate for solutions to supply shortages to ensure that Victoria retains a strong building and construction industry and ensure our state’s post-COVID economic recovery. 

MBV continues to encourage consumers to be kind and patient with builders during these unprecedented times, and for builders to be kind and patient with suppliers. Everyone is trying their best in some exceptionally challenging circumstances.

MBV maintains that the best way to protect Victorian consumers in these unprecedented times is to consider ways of protecting Victorian builders and tradespeople too.

MBV will make further comments once it has had the opportunity to fully analyse the report, especially the recommendation that was not adopted by the Victorian Government related to cost escalation clauses.

The Victorian Government has confirmed to us that MBV will be a part of the working group to continue the discussion on the challenges that rising construction costs has had on our industry and consumers, and further identify measures to mitigate its impact.

To read the full report, CLICK HERE.