Sunshine Coast construction: Major builder predicts year of carnage

An award-winning Sunshine Coast builder has predicted companies to fold and subbies to quit as the industry battles through material shortages and 20 per cent price spikes.

An award-winning Sunshine Coast builder has predicted “carnage” to cripple the industry in 2022 as it battles with continuing trade shortages, six-month construction delays and “frustrating” price spikes.

Caloundra custom builder Dave Becker has braced for a tough year in which he expects some companies to fold and some subcontractors to down tools, perhaps forever.

It comes on the back of a brutal 2021 which forced builders to wear the cost of price rises and materials and trade shortages of about $40,000 per home.

Master Builders Queensland said 2022 was forecast to be “challenging but potentially prosperous” with pandemic-driven price hikes, shortages and delivery delays in building materials identified as the stumbling blocks.

The principal contractor of Becker Construction said he was determined to hang in there but said the fallout from the ongoing issues could prove fatal for some.

Sunshine Coast builder of 20 years Dave Becker has remained hopeful for the industry despite predicting a tough year for 2022. Picture: Patrick Woods.

“I think we will see carnage in general. I think we will lose a lot of good guys in the industry who pack up and go do something else. I know subbies who are talking about shutting down,” Mr Becker said.

“It’s tough times and I’ve never seen it like this before. I just hope we (the industry) can survive.

“When everything across the board is going up and you’re not making money, some will say it’s just too hard. It will be really upsetting to lose them.”

It comes after the collapse of high-profile firm BA Murphy which left subbies claiming to be owed millions of dollars.

BA Murphy had several projects in the works across the Sunshine Coast and Brisbane prior to its collapse. Pictured is a BA Murphy construction site in Pelican Waters.

Master Builders Queensland regional manager Nicola Scott said the ongoing price hikes, plus trade and material delays presented an “unprecedented” challenge.

Ms Scott said more price rises were on the horizon and were expected to continue throughout the year with hikes of up to 20 per cent in store.

“A single-storey dwelling is taking up to 24 weeks to construct and a double-storey dwelling up to 30 weeks on average,” she said.

“Depending on the size of the project and the delays being experienced, some double storey dwellings are taking anywhere up to 12 to 18 months to complete.”

Ms Scott said trade shortages continued to be problematic on the Sunshine Coast.

Sunshine Coast builder of 20 years Dave Becker said 2022 would be a difficult year for the industry. Picture: Patrick Woods.

Mr Becker, whose firm is a regular Master Builders award winner, said it was particularly frustrating for firms to plan ahead when the prices were dictated by the hardwares.

“Usually everything goes up about five per cent but this year timber products were due to rise by 30 per cent in March, it just keeps going up,” he said.

“How are you expected to calculate that on a 12-month contract. You try and do your best but it’s very difficult.

“Look in your hardware, everything has gone up.”

He said builders had no choice but to communicate well with their client.

Mr Becker said he had placed an order for joinery materials in October and had followed up each month on an expected arrival date.

He was told the materials would not arrive until mid-March.

“Usually it’s about a four to six week wait, now it’s five months and we are finding the materials are fairly substandard, but there’s nothing we can do but push on and hope to get through,” he said.

Mr Becker vowed to band together with fellow tradies to ride out the year.