Queensland Government moves to resolve contract disputes between builders and customers

Queensland’s building industry is in crisis as costs skyrocket, delays worsen, and disputes between builders and clients threaten to send thousands of companies to the wall.

A plan to resolve disputes between builders and customers will be enforced by the State Government as Queensland’s construction industry crisis threatens to send thousands of companies to the wall.

The state’s building industry has suffered through a Covid-19 boom as scarce building materials skyrocket in price with the average home build now estimated to cost at least 10 per cent more.

The “perfect storm” has prompted fears mum and dad operators would be forced to absorb costs and delays while clients were left without the homes they were promised – potentially breaching the building contract.

Public Works Minister Mick de Brenni. Picture: Dan Peled

Public Works Minister Mick de Brenni has revealed the government would employ an independent mediation service from July 1 to deal with potential friction between the two parties during the supply and skills shortage.

“This temporary independent mediation service will help address the challenges facing the

residential construction industry, which has been brought about by a combination of factors

including the pandemic’s effect on global supply chains and amplified by the current spike in

construction activity across the state,” he said.

“Add low interest rates and the impact of the Home Builder grant to the mix, greater numbers

of people moving to Queensland, as well as increased activity due to recent bushfires and

floods — it creates the perfect storm for supplies and skills shortages.”

Master Builders Deputy CEO Paul Bidwell. Picture: Tertius Pickard

Master Builders Deputy CEO Paul Bidwell said communication and dispute resolution was essential to ensuring the $45bn construction sector remained afloat.

“Understandably, it will take some time for the industry to get back to its usual supply and

operating rhythm and some contractors may seek extensions of time to complete their

contracts due to issues beyond their control,” he said.

Through the process, disputing parties are encouraged to have a conversation about their situation and work towards “realistic solutions”.

Mr de Brenni said if a dispute remains, builders or homeowners could then contact the Queensland Building and Construction Commission to lodge a complaint.

“We’re asking everyone to keep in mind that there are genuine supply and capacity

constraints for some critical items and trades, so patience and recognition of the impact

delays can have on all parties are a critical part of any response to this issue,” he said.

“The construction industry is playing a critical role in Queensland’s economic recovery and,

because of the hard work of industry and government, it has been able to stay open during

the pandemic, keeping 240,000 Queenslanders on the job.”