Dear (Personalised)
The Home Builders Action Group [HBAG] has been pleased with the response to its representations to decision makers including Ministers and Members of Parliament, Government Departments, peak industry groups, unions and builders.
Following successful meetings including with the Hon. Minister Sue Ellery (who was available and intelligently receptive), Treasury and DMIRS, plans are in hand to hold a HOUSING SUMMIT in November. The Summit will address the issues that are of concern to our industry but, probably more importantly and of greater concern to the home buying public including families and first home buyers.
Details of the Housing Summit will be sent to you as the plans are finalised and HBAG hopes you will be able to attend.
Among the many reputable and long established building companies that have been so adversely affected by trading conditions provoked in important part by well intentioned but damaging Government policies is Prostruct Pty Ltd owned by respected industry identity Wayne Owens.
This is his story:
“My company Prostruct Pty Ltd was until recent times a successful company employing 17 staff, including apprentices, tradespeople, and office staff, among numerous sub-contractors and suppliers.
We carried out works for State and Local Government until post Covid at which time we started pricing work in the commercial sector. We won several contracts which were Lump Sum – Fixed Price contracts, as per legislation. Typical build time completion on these were 18 – 24mths prior to Covid related delays. Once locked into these contracts we were unable to pass on the rising costs which were increasing more than our margins. In most cases between 20% – 60% increases which were a lot more than our margins, also supply delays impacted on our ability to reach milestones in order to submit progress claims and in turn pay our creditors. As a result of our slow cash flow, I started selling my personal assets and drew on my Family home mortgage to try and keep the company afloat, but there came a time when I basically ran out of recourses and had to seek advise on how to close the company. I have been self-employed for approximately 30 years and employed a number of people along the way. I recently turned 67yrs old after working in this industry all of my life and have always paid my bills as they fell due, now I stand to lose everything I have worked for including my family home and potentially be left homeless.
I believe my company and I are a casualty of the times where the Government implemented incentives have impacted negatively on businesses such as mine, being forced into Administration / Liquidation as a result of the escalating rising costs of materials and labour.”
Wayne Owens
0419 924 601
Wayne’s is one of many similar stories reported by HBAG members, and the group is very concerned about the fundamental and probably permanent shift in labour away from the home building industry as costs escalate alarmingly impacting builders bound to fixed price contracts imposed by Government. For every builder who closes its door, up to 50 West Australian families and home buyers are left with half-finished homes and cost increases they can’t afford.
HBAG seeks your support in convincing Government to support its realistic and affordable package that will assist not just the small to medium sized home builder but the whole community.
Thank you once again.
Best wishes
Yours sincerely
Jason Janssen
CHAIRMAN
Home Builders Action Group
0412 373 404