Joint industry working group to progress construction reforms

• McGowan Government partnering with the Master Builders Association WA to examine recommendations contained in their Building Industry Reform Package 2022
• New joint industry working group to explore how to further enhance the way government does business with the construction industry
• Working group will identify potential changes to Department of Finance procurement processes and contracts for significant non-residential building projects 

The McGowan Government and Master Builders Association WA (MBAWA) have agreed to establish a joint industry working group to examine recommendations contained in the association's WA Building Industry Reform Package 2022 report.

While the State Government has already adopted some of the report's recommendations, the new industry working group will explore where structural changes can be made to the way government does business with industry.

To be made up of eight representatives across MBAWA and the Department of Finance, the joint working group will be able to draw on the experiences of experts and other stakeholders as it looks at opportunities for reform.

Its establishment will facilitate a collaborative approach to delivering improvements to State Government procurement for its significant non-residential building projects.

The agreement is a significant step towards sustaining a stable building and construction industry, which remains a priority for the State Government. Measures previously implemented to support the industry include:

• adopting a more flexible approach to the administration of government contracts (for example, granting extensions of time and making payment for unfixed materials);
• greater use of alternative forms of contract and the introduction of rise and fall provisions to mitigate project delivery and tendering risks;
• establishing the Head Contractor Relief Scheme to provide relief for builders impacted by unforeseen market changes; and
• smoothing government's program of infrastructure works to ensure projects are delivered in a steady, sustained sequence. 

Comments attributed to Commerce Minister Sue Ellery:

"Ensuring the ongoing stability of the building industry is a key priority for the McGowan Government.

"We have received consistent feedback from industry, including MBAWA, that global supply challenges and skills shortages continue to impact project costs and timeframes across a range of developments, from residential dwellings through to major public infrastructure.

"The establishment of this industry working group is an important milestone for the Government's work to test and progress appropriate reforms identified by MBAWA.

"Examining and resolving the remaining recommendations that have not yet been adopted by government is a critical step in supporting the future of the building and construction industry in Western Australia, and I look forward to the working group's first meeting."

Comments attributed to Master Builders Association WA Executive Director John Gelavis:

"Master Builders welcomes the opportunity to partner with the McGowan Government on the establishment of a joint industry working group in a key opportunity to progress our proposed reform package.

"The industry has been heavily impacted by massive price escalations, material and supply shortages, skilled labour limitations, and global supply chain disruptions. These factors, coupled with the imbalanced contractual risks of modern contracts, are causing builders to be extremely cautious engaging in future contracts in both the public and private sector.

"In consultation with its members, Master Builders has released a bold vision for the sector, including a series of reforms with 18 recommendations designed to create a more sustainable and diverse building and construction industry in WA.

"Master Builders is pleased the McGowan Government, as the State's largest developer and Principal, is working closely with us to build a stronger and more sustainable industry for all including Principals, builders, subcontractors, suppliers and workers.

"We look forward to progressing our recommendations with the McGowan Government, to ensure we bring stability to the industry now and into the future."

Minister's office - 6552 5700