Builders battle wild weather, COVID and soaring prices

The runaway demand for HomeBuilder grants coupled with recent storm damage had led to a huge increase in material costs. But that’s not the only worry for the local building industry.

Queensland builders have been hit with material price rises topping 70 per cent and massive labour shortages as the runaway demand for HomeBuilder grants coupled with hail damage in southeast Queensland and Rockhampton drive up costs.

HomeBuilder has fuelled huge demand across Queensland with one major construction firm reporting signing 350 contracts in December, compared to 75 in the same month previously.

In Rockhampton, one builder who would usually construct 75 homes a year has contracts for 200 while another in Airlie Beach has seen demand more than double from 30 homes to 70 since HomeBuilder came on.

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Master Builders deputy chief executive officer Paul Bidwell said even if builders could find supplies of framing and roofing materials, roofing crews were “rare as hens’ teeth” because they had followed the lucrative insurance work from the storms.

Master Builders Deputy CEO Paul Bidwell in Brisbane. Picture: Tertius Pickard

He said builders had reported tiled roofs prices soared by 70 per cent, putting tens of thousands of dollars onto the build cost, while others were seeing 8, nine and 10 per cent rises month on month for other materials.

Some had been forced to change from timber framing to steel because wood was in short supply or unaffordable while others had ditched tiles for Colorbond roofs.

Mr Bidwell said the industry was “extraordinarily grateful” for HomeBuilder spurring demand during the COVID crisis but weather, the fight for labour and international supplies meant there were fears of a looming crisis for builders.

He said some smaller builders particularly feared they might not be able to absorb the costs, especially if they could not get the roofs on, which is when the largest progress payments are due from owners.

Homes would still be built, but if the original builder folded, it would take time to find another to take on the work, he said.

The industry body was looking for solutions, Mr Bidwell said, including approaching the Insurance Council of Australia to see if insurers could hold off on “cosmetic” roof repairs to free up roofers for new builds.

But the Insurance Council of Australia said they would not be slowing down with roof repairs.

“The insurance industry is committed to repairing all homes damaged by recent hail storms in Brisbane and Rockhampton as quickly as possible,” the council said in a statement.

Hail damage in Springfield Lakes. Home owner Rob Taylor said 26 of his solar panels were damaged. Picture: Rob Taylor

“Roofers are currently in high demand due to the large number of full roof replacements that are required and insurers are not considering delaying any repairs.

“This repair and rebuilding work, funded by the insurance industry, is already providing a significant stimulus to the construction sector and is contributing to Australia’s economic recovery from COVID-19.”