The Queensland architectural sector is expecting a wave of job losses as the coronavirus bites the development industry

An integral sector of the construction industry, which has long been labelled the `canary in the coalmine’, is expecting a surge in job losses with major projects put on hold due to virus concerns.

MAJOR job losses loom in the Queensland architectural sector with firms start shedding staff as new building projects dry up.

Australian Institute of Architects’ Queensland chapter president Michael Lavery said the sector was the “canary in the coalmine” for the construction industry which has seen major projects put on hold since January with the emergence of the coronavirus pandemic.

However, he said the impact of the Queensland architectural sector has escalated recently with member surveys over the past three weeks showing 20 to 30 per cent businesses have been “dramatically affected”.

“I know of some of the larger firms that have had to let go up to 40 to 50 staff,” Mr Lavery said.

“The ones that are really struggling are in specific markets like multi-residential and those working with clients focused on retail, tourism, hotels, pubs and clubs.

“The consensus from the survey seems to be that if this continues on for another two months there will be a dramatic affect on the industry.

“What we know from previous downturns such as the GFC people tend not to come back to architecture. They tend to find other ways and move away from architecture.”

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Mr Lavery said while there have been concerns over building supply chain issues, protection was needed for the project design, documentation and approval process to ensure there was work as soon as restrictions are lifted.

“What we have been calling for is all levels of government, institutional clients and developers to release some funding to design, document and get projects approved now that will stop further job losses over the next three months, six months and up to two years,” he said.

“On the flip side there has been a big shift in supply and demand.

“For those clients who are prepared and those clients who have projects ready it will be the most competitive tender market I think we will have seen for 10 years.”