WA tradies granted massive $30m relief extension

The McGowan Government has extended the timeframe for head contractors in Department of Finance and Department of Communities building projects to access a $30 million relief scheme to help them pay subcontractors amid rocketing costs.

The scheme was unveiled in this year’s State budget in May as part of measures aiming to support the sector as it battled with unprecedented cost escalation, caused by the pandemic.

John Gelavis said advocacy for members had resulted in the cut-off date being lengthened by about four months to construction contracts entered into up to and including September 30 last year.

Mr Gelavis said he believed it would have a substantial impact, with head contractors for projects such as schools, TAFEs and public housing potentially receiving hundreds of thousands of dollars in help.

He said it was much needed, given the construction industry had suffered “a cost and cashflow crunch” over the past few years, forcing builders to examine State Government projects very carefully before tendering.

“It’s a very tough time in the industry,” Mr Gelavis told The West Australian.

“The additional months will help and there will be projects which fall into that.”

It emerged in August at a parliamentary inquiry that the planned 112-unit East Perth Common Ground complex of permanent housing for rough sleepers and very low income earners had only received one bid.

Homelessness and Housing Minister John Carey advised the month prior it had been knocked back due to not representing good value for taxpayers, but the tender has since returned to the market.

Opposition Housing Minister Steve Martin was sceptical the timeframe extension would have much of an impact, saying builders could “go broke in the blink of an eye” in the current environment, with FIRM Construction and Clough among the latest examples.

“It’s not going to make any difference,” Mr Martin told The West Australian.

Just over a fortnight ago, it emerged only four builders had received funds through the scheme, while a further 16 claims were being assessed.

Mr Gelavis said he would like to see applications processed efficiently “and get the money to the builders so they can survive”.

He said he was pleased the State Government was listening to the industry body, including considering 18 recommendations currently on the table to stabilise the industry.

“We’re recommending the use of standard form contracts and also in terms of procurement, we’d like to see more value in the procurement process and not lowest cost,” he said.

“The industry wants to engage but the contracts must be fair.

“A lot of our members have to said to us that if these aren’t aligned to the 18 recommendations, it’s unlikely they would be tendering.”