The restrictions announced by Premier Andrews include:
Workers on small scale and large scale construction projects must not blend shifts and workers can only work at one site during the six-week stage 4 lockdown.
The restriction to work at a single site during the stage 4 lockdown will be material for sub-contractors who usually provide discreet tasks on multiple projects. It is foreseeable that there could be significant disruption to specialist trades if required to ‘sit out’ once they complete one job at one location.
At a minimum, the likelihood of construction delays during the six-week stage 4 lockdown will be immediate and largely beyond the control of stakeholders.
For both developers and lenders providing finance for these projects, we recommend that construction programs be promptly updated to have regard to these new measures. It may be prudent for lenders to start discussing with borrowers the need for additional interest cover and/or facility extensions.
More to follow as details emerge.
Download pdf here: COVID-19 Update – VIC restrictions affecting construction
Disclaimer: The information contained in this article is provided as personal information only. It is not intended to be legal advice and it should not be used as
legal or professional advice