Unpredictable weather and supply chain shortages are making developers take on more risks in construction and infrastructure contracts from builders to ensure that projects get completed, but it’s not clear whether this marks a permanent change or a temporary response to current stresses.

Surging materials costs that are prompting developers to pull the plug on planned projects – as Sirona Urban has in Perth and Central Equity in Gold Coast – and triggered the collapse of a string of large and small builders, are also prompting a shift in risk allocation between builders and their clients.