Construction companies working in Melbourne are expected to suffer a massive financial blow as Australia’s second largest city once again comes under tough new Covid-19 restrictions.
Firms that work in the city include Lendlease and Multiplex, which are working on projects including the $ 11 billion.
This week Melbourne – which has repeatedly faced some of the toughest lockdown restrictions in the world – has been subjected to stricter restrictions again, with the Victorian state government confirming that by at least September 2nd.
Measures include that residents are not allowed to leave their homes between 9 p.m. and 5 a.m. and almost all retail stores are closed.
The Master Builders Association of Victoria (MBV) has warned that the restrictions that result in large construction works being limited to 25% of their usual on-site workforce and smaller projects limited to just five people at a time will cost both the industry and Treasury a fortune.
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Rebecca Casson, executive director of MBV, said the construction was vital to the state’s economy as it supports more than 300,000 jobs and accounts for more than 46% of tax revenue.
Casson said, “Every day our industry is locked down that’s $ 455 million.
“We know the recent breaker lockouts are particularly challenging for many of our smaller members who are not allowed to work – that’s why we fought so hard for them.”
Companies raised concerns when similar restrictions were imposed a year ago. A then-spokesperson for Multiplex said industry restrictions had an obvious impact on business.
She said at the time, “These new restrictions will have a significant impact on our business, the supply chain and the workforce in general. We are currently working out the specific implications and what can be achieved safely and sensibly on site. “
Lendlease, which announced its latest results yesterday, has already warned that it expects Covid to have an ongoing impact on its financial condition over the next year.