A "perfect storm" caused by supply shortages, soaring prices, worker availability and a third La Nina is wreaking havoc for one south-west council.
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Corangamite Shire director works and services Brooke Love said the "frustrating" conditions had thrown multiple capital works projects off-schedule.
"There is a shortage of raw materials and backlogs in orders once stocks are used," she said.
"As one example, there is a three-month wait on concrete products. In order to accommodate the lack of availability, we have amended culvert designs in our road projects.
"Rising costs have impacted contractors' appetite to tender for works and many have been left out of pocket by the climbing prices. It has caused many to question whether they are able to pass price increases on to their clients - like council - and if they are interested in doing the works at all.
"The availability of workers has meant works have had to be scheduled around when contractors had enough staff available to complete the jobs."
That was the case when the $15.6 million Port Campbell Town Centre Revitalisation Project failed to attract a suitable tender due to the proposed off-season schedule of works.
A second release saw smaller packages of works and timing changes but that again failed to win over potential contractors.
One tender was received but the council said some elements came in at a high cost which did not offer the best value for money.
As a result, work began on the first four parts of the 2022 works package in September to ensure some sort of construction was under way.
A shortage of materials also meant the Simpson Bowling Club had to wait three months for roof trusses to be installed. Then, the club had to accommodate the workloads of local contractors.
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Ms Love said a large number of other works funded by COVID-19 stimulus programs were also adding to the backlog.
"Over the past two years we have delivered an additional $4.2 million in community infrastructure with funding from the federal government's Local Roads and Community Infrastructure Program," she said.
"Across Australia there was $1.5 billion of funding for projects under the program. This level of investment, along with the impacts and constraints of the pandemic, will have lasting impacts on the construction industry."
She said the council was doing its best to minimise community impact.
"The council prides itself on delivering quality infrastructure for the community," Ms Love said.
"In the past we have been able to do this relatively quickly because material supplies were unhindered and local contractors didn't have such a large works program.
"Unfortunately, availability of materials and the La Nina weather event are out of our control. We know it's frustrating and we thank the community for their patience as we do the best we can with the resources we have available.
"...Delays with council's project delivery are being felt at the moment and are expected to continue due to ongoing material availability and supply, contractor and consultants availability and weather conditions."
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Jessica Greenan
Journalist at The Warrnambool Standard covering both Moyne Shire and Corangamite Shire Council. Sometimes court. Special interest in all things environment.
Journalist at The Warrnambool Standard covering both Moyne Shire and Corangamite Shire Council. Sometimes court. Special interest in all things environment.
