Builder says price gouging and labour shortage still an issue

Toowoomba builder, Jackson Adams says the HomeBuilder extensions are welcomed by the industry but warns there are still several cracks in the building boom’s foundation that need to be addressed.

A Toowoomba building company is welcoming the reprieve the federal government’s commitment to extend its HomeBuilder scheme by an additional 12 months will bring to the region following the recent building boom, but warns the industry isn’t completely out of the woods just yet.

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By giving applicants an extra year to start construction to account for supply shortages caused by the pandemic, the extension will provide a lifeline to thousands of homeowners struggling to qualify for the HomeBuilder grant as well as take a little bit of pressure placed on the local trades industries.

Richard Adams Homes project manager Jackson Adams welcomed the extension with open arms, saying the extension would allow overwhelmed builders and trades more time to service the current building boom Toowoomba and most of Australia is currently experiencing.

With 35 builds currently underway and another 40 in the works for the rest of the year, Mr Adams said the company was under the pump to get everything completed in the allocated time frame set out by the Federal Government.

Jackson Adams of Richard Adams Homes says the government’s HomeBuilder extension has given the industry the small breather it needed. Picture: Nev Madsen

“We’ve got to have them all pretty much started this year and have them completed within the next 12 months,” he said.

“But the rules around the way that the grant works has been greatly eased which has taken a lot of pressure off of us.

“Obviously there’s still some pressure to complete the builds in a timely manner for our clients because the longer people aren’t in their homes the longer it’s costing them more money, but this extension means the entire industry now have more time to get all of these extra jobs done.”

Unfortunately, Mr Adams doesn’t believe the extension will have much of an impact on the material price gouging the building industry is currently experiencing.

Jackson Adams of Richard Adams Homes in Cotswold Hills, Tallowwood Boulevard at one of the 35 builds the company currently has on the go. Picture: Nev Madsen

“Once prices go up they typically stay up … this building boom has even resulted in the prices of materials from overseas going up with the cost of shipping and importing also increasing.

“This is going to continue to affect the trades within the industry whether it’s carpenters, brick layers or plasterers because the prices were set six months ago so it’s too late to change the cost of the project even though the cost of materials can mean there’s very little left in your pocket after the project is completed.”

Mr Adams also said a lot more needed to be done by the government and industry bodies to address the skilled trades shortage and encourage more young people to choose a trade as a career.

“Right now this generation seem to be more concerned and interested with technology and building apps and becoming influencers, but if we don’t have the skilled tradespeople to build our houses and hospitals we’re going to be in trouble.”