Flood Disaster Tipped to Intensify Construction Crisis | The Urban Developer
The recent Floods from the rain “bomb” causing a path of devastation across Australia’s east coast, is set to plunge the country’s beleaguered construction industry into a deeper crisis.
Surging demand for trades from insurers is predicted to intensify the pandemic-induced perfect storm of supply and labour shortages, driving further hikes in construction costs and delays.
Project management specialist Claire O’Rourke, from Brisbane-based development consultancy Bluebird Property, says the challenged sector would be hit harder than ever by the latest flood disaster.
“At the time of the 2011 floods, we were in a very different situation,” O’Rourke said.
“The industry was still dealing with the impacts of the GFC and activity in the construction sector was limited. So, builders used the opportunity to fill their workbooks with rectification works.”
“This time, it’s a very different story, as the industry is currently grappling with significant resource constraints.”
“The damage caused by the floods and the responding clean up, will make this situation even more challenging.”
“While it will take months before we realise the full impact, we believe we will see an even greater pressure on labour and material supplies, as well as further program delays.”
“It will also potentially hurt those tier 2 and 3 contractors who are already on the edge.”
To discuss how Bluebird can assist on your project visit our Contact Page.