How will construction reduction under Stage 4 restrictions impact the commercial industry?

Melbourne’s constructions sites have not been spared under the new Stage 4 restrictions announced this week.

For the first time, construction sites will be impacted by COVID-19 restrictions as wide-ranging workplace shutdowns come into effect.

Will construction stop or continue under Stage 4 restrictions in VIC?

Construction will continue, but not to the same scale as was previously permitted. The level of restrictions varies, depending on the scale of construction, with Victorian premier Daniel Andrews describing the new measures as placing the construction industry into a “pilot-light phase”.

Under the new restrictions, major civil constructions such as train lines and other government-funded infrastructure will be permitted to continue, after already having worker numbers scaled back by half, and must submit a High Risk COVID Safe Plan.

Mr Andrews said on Monday that the government would look at ways to reduce workers on projects, where possible.

Commercial projects of more than three stories, such as apartment or office buildings, factories and warehouses, are being capped at 25% of their usual workforce, and must also submit a Safe Plan. Workers are prevented from blending shifts or working at more than one site during the Stage 4 period.

Smaller projects of less than three storeys, such as residential homes, are limited to no more than five workers – including supervisors – onsite at the same time. Similarly, workers must not blend shifts or work at more than one site during the six weeks of restrictions.

Mr Andrews said residential tradespeople would only be permitted to attend existing homes for “emergency support”.

“It’s not the time to be painting your house or having unnecessary, non-urgent work happen,” Mr Andrews said.

How will it impact the commercial industry?

REA Group chief economist Nerida Conisbee says the scaling back of the construction industry will take a huge toll on Victoria, as it is one of the state’s biggest employers.

“It’s a big hit on the Victorian economy, given the city in recent years has relied on construction activity as a major employer,” she says.

Conisbee says it is critical that construction and other industries are permitted to return to normality as soon as is safely possible.

“On the one hand the lockdown is necessary, but on the other hand we just have to continue to be mindful of the incredible economic hit this is taking.”