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January 31, 2019
In March we will see the release of the amendments to the National Construction Code which will have far reaching consequences for builders. It is likely we will see further requirements around energy efficiency, liveability and product compliance introduced. In addition to all of this, the proposed introduction of mandatory inspections of all building work, green infrastructure and Security of Payment requirements, that could lead to Project Bank Accounts for residential building work, is just too much to bare for an industry that is already suffering as a result of an historically underperforming economy, low population growth and more recently a tightening by the banks on requirements for loan approvals.
Surely it is time to take a deep breath and say enough is enough. This is an absolute tsunami of arguably unnecessary and onerous impositions on our industry which will undoubtedly lead to a massive increase in construction costs and administration to building companies, already burdened by unnecessary red tape. It is clear that the impact of all of this regulatory change on the cost of building has not been considered or is a low priority. Demand for new homes is at a low point with almost 12 months of declining activity. We don’t need further cost impositions forced upon us now which will just exacerbate the situation. Is the government really interested in providing a system with processes that encourage and support affordable housing for South Australians, particularly first home buyers and young families? If they are, then we need an urgent review of the changes and new impositions that are before us and this should include a rigorous Cost Benefits Analysis.