Master Builders members are feeling the effects of the fuel price shock filling up at the bowser and suppliers applying fuel levies. The impacts on construction projects are widespread and across the supply chain.

To assist members we have put together a list of FAQ’s about your options under both fixed priced and cost-plus contracts. You can find these on our website using the following link https://www.mbansw.asn.au/media/industry-news/impact-middle-east-conflict-fuel-and-supply-costs-0 . Also, please do not hesitate to give MBA Lawyers a call if you have any further questions or need advice around any other contractual matters.

We have also set up a dedicated email inbox for members to send us examples of price increases on materials and service which may impact project margins. Please send these examples to advocacy@mbansw.asn.au. The more information we have the more effective we can be in our advocacy efforts to government.

We have made sure that the impact on our members from the fuel price shock including on getting products and services to site and on the price of building materials have been front and centre in the media and have the attention of NSW and Federal Governments. 

• The Federal Government's cut to Fuel Excise and the Heavy Vehicle Road User Charge are strongly welcome, but Master Builders NSW has called on them to ensure that the cuts make it down to the construction supply chain. 

• The ACCC has increased penalties for price gouging, and Master Builders has asked that they focus on price gouging in the construction supply chain. 

• We have requested that the NSW Government recognise construction as an essential industry and the Minns Government has confirmed that they will include construction as a key industry for the state and that it's new fuel monitoring authority will watch for pressure points and shortages in out industry. 

• We have called for the NSW Government to allow flexibility and leniency in government funded projects for delays not to trigger liquidated damages and for cost increases to be included where the government has a priced price contract. 

We want to minimise the difficulty builders face in getting clients across the line in times of uncertainty, so our public advocacy is targeted to raise awareness of the challenges felt by Master Builders NSW members without scaring the horses. 

We believe there is more the government can do to assist industry. This week we’ve formally requested that if the current fuel shock become a prolonged economic shock that construction be included as a priority essential service.

We have supported the establishment of the Federal Government’s Fuel Supply Taskforce and Master Builders has been invited to participate as an representative on the Taskforce Industry Reference Group.

Taking lessons from the COVID pandemic, we have written to all relevant federal and state ministers requesting that there is leniency granted in government contracts in the event that the fuel shock causes delays and that a temporary pause in put on liable damages clauses unit such time as fuel supplies are secured.

We will continue to send regular update to members as we traverse the next few weeks. In the meantime, I encourage you call the team at MBA if you need assistance in how to manage the impacts of the current fuel shortage on your sites and on your business.