has warned that more companies and subcontractors were likely to hit the wall as the material supply crisis shows no sign of abating.
“In my opinion, a section of the construction industry in some parts of the country, like south-east Queensland, is in quite a mess and some businesses are unlikely to survive the dilemma currently confronting the industry,” Mr Quinn said in a message to staff. The current crisis especially hurts those builders using fixed price contracts who have no ability to pass on cost increases on timber and steel in the six to 12 months it takes to finish a project, says Paul Bidwell, Master Builders Queensland deputy chief executive.
He said a builder in Central Queensland was taking a loss on every one of the 100 homes he was constructing because contracts were locked in on 2020 prices for materials. Mr Bidwell said Oracle had every right to ask customers for more money, saying they didn’t have to pay.
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