Danny is a co-founder and director of Debuilt Property and has a professional career spanning architecture, construction, project management, development and property finance. Debuilt provides a wide range of property, development and monitoring services to investors, financiers, property owners and developers.

Australia’s outbreak of COVID-19 is decimating industry and employment from every angle. What the government considers ‘non-essential’ work has ground to a halt and this is already having serious knock-on effects on the ASX and markets.

Despite all the negativity, activity within the building and construction industry is so far relatively unscathed. This is due in part to one surprising factor – the alliance of the CFMEU and Master Builders Victoria (MBV).

A ‘collaborative partnership’ of the two adversaries, as they expressed it in a media release, has approached Daniel Andrews to ensure building and construction sites around the state remain open. 

Forced site shutdowns would significantly exacerbate the already crippling impact on our economy. Combined, the building and construction industry contributes to 45% of tax revenue for Victoria and employs 312,000 people in the state. The AFR reported that site shutdowns could trigger delay disputes to the extent of up to $2 billion a month. Extended delays in construction completion has the potential to create a contractual headache with presale sunset dates. This would most likely require state government intervention.

To the surprise of everyone, the CFMEU and the MBV are collaborating to preserve jobs and capital and avoid an industry blackout. The organisations approached the State Government, with their large tax contribution and employment figures in hand, to guarantee a pipeline of projects is maintained and jobs are kept.

It is commendable that two industry bodies who often clash heads can unite for the good of the industry and the economy. Recognising the necessity of building and construction work and utilising it to harvest optimal economic and social outcomes displays humanitarian qualities of community, compromise and teamwork. Differences aside, this duopoly could become positively powerful for Victoria during the COVID-19 outbreak.

Whilst Stage 3 of Victoria’s shut down is inevitable, as explained by the Premier earlier this week, it is important industries like construction can continue for as long as possible. Work conducted now can provide the economy with some vital stimulus to kick things off once jobs resume.

Unfortunately, it was announced on Thursday that the first known case of COVID-19 on an Australian construction site had occurred at Melbourne University’s Parkville Campus. Hopefully this does not affect the State Government’s decision to allow essential industry to continue working.

Positive news has been scarce in the media this year. Cheers to John Setka and Rebecca Casson, and the united delegation of the other industry bodies, for bringing this case to Daniel Andrews.

Read the full media release here: Collaborative Partnership Pathway for Construction Industry.