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ARTICLE · 11 APRIL 2024

La Niña And Its Effect On Contractors

The last La Niña (wet period) lasted for more than 1 year and ended in March 2023. After a few months of a neutral period, El Niño (dry period) started in September 2023.

AustraliaReal Estate and Construction

The last La Niña (wet period) lasted for more than 1 year and ended in March 2023. After a few months of a neutral period, El Niño (dry period) started in September 2023. El Niño was expected to persist until at least the second quarter of this year. However, based on the latest forecast of the Bureau of Meteorology and contrary to expectations, El Niño is ending and La Niña is approaching.1 La Niña is likely to cause stronger winds and increased rainfall, which may result in tropical cyclones (in severe cases). Such inclement weather will likely impact the progress of construction works and cause delays in projects. Accordingly, the contractors should allocate extra allowance for preliminaries in the projects moving forward.

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