FROM THE PRESIDENT & CEO
From the President and CEO
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elcome to the April-June issue of Master Builder Victoria — the official journal of the Master Builders Association of Victoria (MBV). We trust this edition of your member magazine has something for everyone and will interest you and your organisation. Here’s a quick wrap of what MBV has been doing on your behalf in recent months.
MBV welcomes supply chains report As you may know, MBV has been actively involved in finding supply shortage solutions to ensure sustained growth for the building and construction industry. Supply shortages and the everincreasing costs of key building materials, such as timber and steel, have been two of the most pressing issues facing our sector over the past two years. A survey last year on material shortages by Master Builders Australia revealed that 98 per cent of Victorian builders had been affected by timber delays and price rises, with wait times for some materials blowing out to six months. We know that our members are finding that costs are spiralling out of control due to supply and demand issues, with some product lines increasing by as much as 50 per cent. At the request of MBV, the Victorian Government asked Commissioner for Better Regulation and Red Tape Commissioner, Anna Cronin, to investigate the issue of building and construction material shortages. MBV recently welcomed the Victorian Government’s response to this important investigation, with the Government supporting nine of the 10
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Master Builders Victoria
key recommendations. We had hoped that the Victorian Government would support the inclusion of a cost escalation clause into new contracts. Doing this would effectively allow builders to vary a contract price to reflect the increased costs of labour and materials, rather than being locked into a fixed price agreement when increased costs are beyond anyone’s control. However, MBV was disappointed that the Victorian Government did not support a measure to allow builders to share some cost increases with clients. MBV advocated to the Victorian Government to further engage on this important issue and establish a Residential Construction Costs Working Group on behalf of members. This group will discuss the challenges that rising construction costs have had on our industry and consumers and identify measures to mitigate their impact. We continue to remind all levels of Government that our members are also consumers with families — and everyone must continue to work together fairly in these unprecedented times. We recognise there are no shortterm solutions to these exceptionally complex issues. However, please be assured that MBV continues to place this issue as a high priority. We are in regular contact with our national counterparts, state and federal governments and key stakeholders in the supply chain to find workable solutions moving forward. In the meantime, don’t forget to use the unique resources we have designed for members on our website to assist you
(www.mbav.com.au/supply-chain-andmaterial-shortages-resources).
Vale Mario Biasin, Metricon Founder and CEO Many of you may have heard about the sad passing of Metricon Founder and CEO Mario Biasin last month. Mario was 71 years old. We now understand that Mario was experiencing mental health issues. Mario was a great friend to MBV and a powerful advocate for our industry. He was an integral part of the critical conversations that ensured our industry stayed open during the Covid-19 pandemic, especially when many other sectors were forced to close. Mario’s passing leaves an enormous void, and he will be sorely missed. Our thoughts are with Mario’s family, together with the whole Metricon team at this unfortunate time.
Volume 77 Issue 02
