Western Australia President's report

After a period of stabilisation, the construction environment in Western Australia is again facing challenges due to global fuel restrictions. Fuel price volatility is flowing onto to rising input costs, and along with continued labour shortages have all contributed to a higher level of uncertainty for builders - particularly small businesses that operate on tight margins. Fluctuations in these costs can create flow on effects throughout the building process, and uncertainty around final construction costs.

While many of these pressures sit outside our direct control, there are steps builders can take to protect their businesses, manage risk, and maintain momentum through uncertain times.

In an environment where fuel price fluctuations affect transport, materials and on site operations, absolute cost certainty is difficult to achieve. however, what we can all do is collaborate to get clearer cost visibility.

Builders are increasingly reviewing estimates more frequently, engaging earlier with suppliers, and maintaining regular conversations with trades about upcoming pricing changes.

Seeking clear, transparent, and itemised information on surcharges or levies is vital to help your cost management, keep suppliers and trades to account and help provide an avenue to remove and adjust price increases as conditions stabilise.

This allows potential issues to be identified sooner and decisions to be made with better information, rather than reacting when costs have already escalated.

Fuel costs tend to hit hardest when inefficiencies creep in, extra deliveries and repeated site visits. Many builders are responding by consolidating deliveries, and ensuring trades are scheduled efficiently to minimise unnecessary travel and downtime. Even small improvements in coordination can deliver real savings when fuel prices are high and margins are under pressure.

Uncertain input costs have reinforced the importance of strong cash flow management. Builders are reviewing payment schedules, progress claim timing, and where appropriate, ensuring contracts allow for cost movements under defined circumstances.

Clear communication with clients is key. Most clients understand that fuel costs and broader economic pressures can change quickly, particularly when expectations are set early and explained transparently.

Labour shortages remain a significant constraint in WA. Builders who invest in apprentices and retain strong relationships with reliable trades are better positioned to avoid delays and cost blowouts caused by workforce gaps. Strong supplier relationships are just as important. Knowing who to call, understanding lead times, and prioritising long term partnerships can help smooth disruption when supply chains tighten.

Economic conditions will continue to shift, and builders who remain informed, adaptable and open to innovation will be best placed to respond. While uncertainty is not ideal, WA builders have consistently shown resilience. Small businesses remain the backbone of our housing industry, and their ability to adapt is one of its greatest strengths.

In times like these, looking out for one another matters more than ever. The residential building industry is built on relationships, between builders, trades, suppliers and clients, and strong connections help carry us through periods of uncertainty. Checking in, sharing information, and supporting each other where possible strengthens not only individual businesses, but the industry as a whole.

By staying focused on planning, communication and efficiency, and by continuing to support one another, builders can continue to deliver homes, support jobs and keep the wheels turning, even in challenging conditions.

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