Year in review - Australian Constructors Association
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2021 Year in review
‘Our vision is to create a
sustainable construction
industry that is a great
place to work.’
1
In this report
Strategic report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
President’s introduction . . . . . . . . . . . . . . . . . . . 10
Chief Executive Officer’s Q&A . . . . . . . . . . . . . . 12
Strategic context . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Priorities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Reform . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Advocacy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Thought leadership . . . . . . . . . . . . . . . . . . . . . . . 24 2021 YEAR IN REVIEW
© Australian Constructors Association 2021
Communications . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Governance report . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
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free to copy, communicate and adapt this
Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 material, as long as you attribute the work
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2 3
This year was like no other. As with many industries,
the COVID pandemic put construction to the test—even
more so than the year before. But the test was not limited
to keeping the industry open. Tasked with rebuilding
Australia’s economy, the construction industry is facing a
tidal wave of work and failure to deliver is not an option.
We believe COVID provides a once in a generation
opportunity for reform. With record investment in
infrastructure, the time for change is now. We have
responded with speed and agility to fast-track reform
initiatives and have built momentum for creating a more
sustainable construction industry.
Above all, this year has shown the power of collaboration.
The industry as a whole has come together and with
government to respond to COVID and unite for reform.
We are on the path to a more sustainable and progressive
construction industry.
4 5
Strategic report 6 7
Highlights
LEADERSHIP
Demonstrated LEADERSHIP in reopening construction
following pandemic lockdowns
MEDIA $2.4M in media mentions
295% growth in LinkedIn followers; 7600 total LinkedIn following
HIGHEST LinkedIn engagement of any industry association
ADVOCACY
15 government submissions
Equal PARTNER TO THE NSW AND VICTORIAN GOVERNMENTS
in the Construction Industry Leadership Forum and Construction Industry Culture Taskforce
Represented at ALL MAJOR FORUMS—government and industry
COLLABORATION
Collaboration with ALL major industry bodies—submissions and thought leadership WEBSITE86,054 pageviews
25% growth in membership 53% increase in traffic to our website
29,569 new website users
8 9
Collaboration on addressing the fundamental issues facing Finally, on behalf of the Board, I would like
the industry that have also undermined to express appreciation to the Australian
Reform of the magnitude needed will only our efforts to build capability and capacity. Constructors Association team and the
happen through greater collaboration across And we have the attention of the Federal many people from across our member
all levels of government and in consultation
President’s introduction
Government who have shown a willingness organisations who have contributed
with industry. To top it off, it will take to engage with industry having undertaken through participation in our committees
leadership from the Federal Government. an inquiry into government procurement and advisory groups. The association’s
We recognise that industry has an important practices this year. achievements this year have helped set the
Cathal O’Rourke reflects on the year industry united for reform and wheels in motion for a more sustainable
role to play and remain focused on
the Australian Constructors Association’s role in leading the charge. upholding our 10 industry commitments
Looking ahead and progressive industry that is a great place
to help shift the dial and set the industry to work.
Government and industry agree on the
on a more sustainable path. We are also issues, and we largely agree on the solutions.
committed to working with government The challenge is implementing change while
and industry and have progressed key the window of opportunity is open.
Construction matters After decades of quiet diplomacy, we have
strategic collaborations with the NSW
stepped forward to bring construction
more than ever stakeholders together to influence and and Victorian governments through the We remain committed to working
Construction Industry Leadership Forum collaboratively with the entire industry
The construction industry has been tasked advocate for positive change. And we have and all levels of government to achieve
taken major strides in progressing the and Construction Industry Culture Taskforce.
with rebuilding Australia’s economy. This meaningful reform. Continuing our journey
change agenda. Our efforts have focused Through these collaborations we are taking
is a privilege—one that many industries do of bringing stakeholders together, in 2022
on driving an improved industry culture, a partnership approach to solving the
not have. But it also comes with a huge we will be increasing our collaborative
creating increased capacity and capability, industry’s challenges while improving value
responsibility if the nation is to build back efforts. Having welcomed new members
and ensuring that project commercial for money for taxpayers.
stronger. Ghella, Icon, Seymour Whyte and Calibre
frameworks are equitable and align the These state-based collaborations are Group to the association this year, we
Reinvigorated strategy interests of all parties. just the beginning. The appetite from hope to create new opportunities for
Committed to creating a more sustainable all—government and industry—is large. further members. We are also excited
and progressive construction industry, the Contractors and unions have come to expand our state-based government
Australian Constructors Association’s vision together to open construction during and industry collaborations with the
remains unchanged. What has changed the pandemic and keep projects moving. Queensland Government, and potentially
is our approach. We believe government Contractors have been working with other jurisdictions, joining the Construction
investment provides a great imperative for government to expedite projects and get Industry Leadership Forum.
change, and it must be matched by reform. boots on the ground. Now we are focused
10 11
they do open, this cannot be relied upon. and highlight of this year. The Australian What are the priorities for 2022?
Training, while a good investment and Constructors Association was incredibly
necessary for the long-term sustainability proud to spearhead calls for the Federal The overarching priority for 2022 is
of the industry, takes many years and will Government to urgently lead reform. accelerating change that has already
Chief Executive Officer’s Q&A
not solve the immediate constraints. Commenting on an open letter coordinated started occurring through our state-based
by the Australian Constructors Association government and industry collaborations
The answer is simple, government needs and our national advocacy efforts. This
in response to the Federal Government’s
to work with the construction industry to involves speeding up the outputs under
Inquiry into procurement practices for
Jon Davies answers questions on delivering the record pipeline drive greater productivity and innovation
government-funded infrastructure, The development by the Construction Industry
so it can do more with less. As the second
and priorities for 2022. Australian newspaper described the move Leadership Forum and Construction Industry
worst performing industry when it comes Culture Taskforce and broadening industry
as ‘an extraordinary show of solidarity’.
to digital adoption, technology presents a and government involvement in them. It
This alliance was just one of many joint
real opportunity to put the industry on the also involves securing a commitment from
letters and collaborations that demonstrate
fast track to improved productivity. But if it the Australian Government in establishing
industry is aligned and willing to work
What are the biggest challenges box. These procurement models can also was as simple as adopting new technology, a Federally led government and industry
together on joint solutions.
be partially blamed for slow adoption of we would have done this already. We collaborative leadership group.
facing the industry? productivity enhancing digital technologies. currently operate in an environment where A major achievement this year was publicly
No wonder attracting and retaining government practices are stifling the releasing the industry’s first ever culture Finally, in keeping with our purpose of
The construction industry is not in good
sufficient people to undertake the pipeline adoption of new technology and holding standard. Incorporating three years of bringing stakeholders together, we are
shape, and it hasn’t been for some time.
of work is a struggle. the industry back. Productivity growth over evidence obtained through research and delighted to announce the Australian
Despite being the nation’s third largest
the last 30 years has trailed other significant pilot projects, as well as consultation, the Constructors Association will be launching a
industry, the construction industry
consistently has one of the highest rates of How is industry going to deliver industries by 25 per cent. A halving of this gap culture standard focuses on our industry’s national conference in May 2022 to provide
would generate savings of $15 billion a year. most important asset—its people. further opportunities for industry and
insolvencies in Australia, only 12 per cent of the record project pipeline? government to come together.
our workforce are women, and workers are If we want to keep our workers safe, attract
six times more likely to die from suicide than Not surprisingly, given the reliance on What has been the Australian
construction, concerns have been raised new talent and keep pace with the growing
a workplace incident. Constructors Association’s demand for infrastructure, we need to tackle
about the ability of the construction
The lack of diversity in the industry can be industry to deliver the project pipeline. biggest achievement this year? the big issues that have plagued our industry
attributed in part to the long working hours A significant capacity shortfall is predicted, for decades. That begins with a national
There have been many milestones met
of the industry and the combative culture. and government is looking to find solutions. standard embedded in every job site that
throughout the past 12 months. The
In turn, this can be largely attributed to Skilled migration has traditionally been the calls out bad behaviour, lifts the low rates of
widespread collaboration between industry
government buying practices that focus on first response but with international borders women entering our industry and removes
and government has been a feature
lowest cost over best value at the tender closed and high demand for workers when the stigma that surrounds mental illness.
12 13
Strategic context Priorities
All levels of government are relying on the construction industry to for the same level of expenditure and employ an extra 15,000 people. The Australian Constructors Association has identified that there
lead the economy forward on the basis that every dollar spent on This saving will be vital in a post COVID world with high levels of are three key pillars to a sustainable construction industry:
infrastructure has a $3 kick on to the wider economy. But the very government debt but no less of a requirement for infrastructure.
• improved industry culture
industry tasked with this critical role is operating in an unsustainable
The ability to bring about change resulting in a more productive
manner. • sufficient capability, capacity and skills
and sustainable industry is predicated on government and industry
Despite being the nation’s third largest industry, construction working together. That is why, as stated in our Strategic Plan, our • equitable and aligned commercial frameworks.
consistently has one of the highest rates of insolvencies in Australia. purpose is to bring construction stakeholders together to influence,
Productivity growth over the last 30 years has trailed other significant advocate and generate a sustainable and progressive The challenge with strengthening these pillars is that they are
industries by 25 per cent and only 12 per cent of our workforce are construction industry, while being a trusted all interlinked. Improvement in one requires improvement in all.
women. Most shockingly, workers are 6 times more likely to die partner and voice for the industry.
from suicide than a workplace incident.
If we do not address these issues we will struggle to attract and ‘The challenge is driving a step change Culture Capability and capacity Commercial frameworks
retain enough people to undertake the pipeline of projects ahead in productivity and innovation.’ The construction industry’s poor culture is While the record investment in the How projects are procured and delivered
of us—and the pipeline is huge. Major public infrastructure activity is
costing the economy over $8 billion every construction of infrastructure creates new are major contributors to the sustainability
expected to double over the next three years, peaking at $52 billion
year2. This figure comprises $6.1 billion opportunities, it presents a major risk for the problem. The construction industry operates
in 2023 and employment in the infrastructure sector will need to
associated with lost wellbeing from capacity of the market to meet this growth in an environment where a focus on lowest
grow from 183,000 people today to more than 288,000 in 20231.
work-related fatalities, injuries and in investment. Already there are shortages cost at the tender box and the shifting of
Infrastructure Australia rightly declares the challenge for the illnesses; $708 million associated with the of various occupations within the sector and risk to the contractor are stifling investment
industry as being the need to drive a step change in infrastructure productivity cost of employees consistently now is the right time to incentivise training, in new technology and holding the industry
productivity and innovation which the independent advisor says working overtime; $643 million from mental upskill and attract the other half of the back from realising major productivity gains.
is a shared responsibility between government and industry. If ill-health; and $533 million associated working population who currently choose Further, these frameworks are driving an
we could just halve the gap in productivity growth between the with the cost of higher incidence of male not to work in construction—women. adversarial culture that is impacting on our
construction industry and other industries over the past 30 years, construction worker suicides compared to ability to attract and retain the people we
we could construct an extra $15 billion of infrastructure every year other industries. need to deliver the pipeline of work ahead
of us.
Infrastructure Australia (2021) Infrastructure Market Capacity Report, October 2021. Accessed at:
1 2
BIS Oxford Economics (2021) The Cost of Doing Nothing Report, May 2021. Accessed at:
https://www.infrastructureaustralia.gov.au/sites/default/files/2021-10/Infrastructure%20Market%20Capacity%20Report%20%281%29.pdf https://cultureinconstruction.com.au/wp-content/uploads/2021/09/The-Cost-of-Doing-Nothing-Report.pdf
14 15
Reform
PLAN ACTIVITIES INDUSTRY RESPONSE
In September 2021, the Australian Constructors Association
1
Plan recommendation: deliver
timeframe
welcomed Infrastructure Australia’s 2021 Australian Infrastructure greater return on investment Bring forward the establishment of the National government and industry
leadership group with a clear mandate to implement reforms.
Plan. The Infrastructure Plan detailed good recommendations that year
• Establish a government and industry leadership group to expand
closely align with the three pillars of a sustainable construction Aligning investment and and promote reforms and best practices.
OUTCOME
• Create a common national infrastructure vision.
industry. If enacted, these recommendations will improve industry reforms with a unified and • Report against the Infrastructure Decision-Making Principles.
2
timeframe
culture, create increased capacity and capability, and ensure that central vision for Australian
Industry and government to agree and document best practice.
Infrastructure.
commercial frameworks are equitable and align the interests of year
all parties.
Recognising that we all have a role to play, and we need to act
1
Plan recommendation: improve industry • Develop and implement an infrastructure industry culture commitment.
timeframe
now, the Australian Constructors Association issued a response productivity and value for money • Embed the infrastructure culture commitment through existing procurement
Adopt the construction industry Culture Standard developed
frameworks and pre-qualification schemes.
by the Construction Industry Culture Taskforce.
to the Infrastructure Plan detailing specific activities for industry • Improve productivity and attractiveness of the sector by promoting a five-day
working week and working hour limits. year
to undertake to support government in implementing reforms. Industry is a sector of choice
OUTCOME
Many of these activities are underway through our collaboration for employees and meets
1
with the NSW and Victorian Governments through the work of the workforce demands
timeframe
by embracing diversity • Deliver a workforce attraction and retention strategy.
Expand the work of the Construction Industry Leadership Forum
Construction Industry Leadership Forum and Construction Industry • Empower public sector project professionals and incentivise organisation leadership to develop national attraction and retention strategy.
and inclusion. to be innovative and adopt best practices.
Culture Taskforce. year
2
Plan recommendation: reduce uncertainty • Develop a procurement decision-making tool to more effectively understand Industry and government to develop:
timeframe
and allocate scope in line with project fundamentals.
for industry and improve value for money • guidance to define value for money, including performance metrics
• Develop and implement nationally consistent contract suite to support a spectrum
• harmonised common commercial terms
of procurement models.
• a Collaboration Framework
• Utilise more collaborative commercial models that facilitate value for money
and smaller engagements directly with contractors and consultants. • guidance on procurement models and packaging strategies year
Use best practice commercial
OUTCOME
arrangements and standard
• Align innovation criteria in bid assessment with project and organisational needs.
1
contract forms used and
timeframe
• Conduct constructability, operability and maintainability reviews on projects and repeat
supported by a culture at multiple stages of the project’s lifecycle. Government and industry to work together to develop performance based
specifications on major road projects and innovation criteria harmonised
• Kick-start digital by default in infrastructure by verifying all federally funded projects adopt
of genuine innovation. innovative approaches across their lifecycle, including Building Information Modelling, across jurisdictions.
digital engineering, embedded sensors and digital asset management. Strengthen nationally year
consistent guidance, tools and templates to match these objectives.
16Construction Industry Construction Industry
Leadership Forum Culture Taskforce
A Culture Standard for the
One of our most significant and strategic collaborations is the Recognising the importance of the industry’s culture, the Construction Industry
Construction Industry Leadership Forum—a collaboration between Construction Industry Leadership Forum launched the Culture in Consultation Paper
October 2021
the Australian Constructors Association and governments of NSW and Construction initiative in 2021 through a new arm known as the
Victoria. The purpose of the forum is to improve the effectiveness and Construction Industry Culture Taskforce. Led by the Australian
value of the procurement and delivery of government infrastructure Constructors Association and the NSW and Victorian public sectors,
programs. Through this forum, government and industry are working the taskforce has developed a draft Culture Standard. Drawing on
together to set a common agenda for change, share knowledge and research and data from a range of pilot projects, the Culture Standard
set a program of activities to resolve commercial and contractual puts everything on the table from reducing excessive work hours,
issues and address capability and capacity constraints. The forum improving diversity, attracting new talent and making mental health
operates with three workstreams focusing on: value for money, a priority.
procurement reform and capability and capacity.
Once finalised, governments will be called upon to incorporate
Forum’s achievements compliance with the Culture Standard into their standard
procurement requirements.
A successful outcome of the Construction Industry Leadership
Forum has been the conversion of the North East Link Project (NELP) Taskforce’s achievements
in Melbourne from a traditional Public Private Partnership (PPP) to
one with an Incentivised Target Cost model at its core. Had it not In October 2021, the Taskforce launched the construction industry’s
been for the improved awareness of industry issues through this first ever Culture Standard for public consultation. The public
forum, this change would not likely have occurred. consultation was supported by an extensive engagement program
with government and industry stakeholders and widespread media
In NSW, Sydney Metro and the Construction Industry Leadership Forum coverage.
undertook a trial to deal with risk more transparently during the tender
phase. It was considered a great a success and Sydney Metro has since
adopted the process for procurement of other packages. Other delivery
agencies and jurisdictions are now considering implementing the
process during procurement of major projects.
18 19Advocacy State reform
The Australian Constructors Association has across the NSW construction industry. The our relationship with state agencies and contracts can be minimised, contract
tirelessly advocated for the construction NSW Government subsequently released infrastructure bodies flourished this year. complexity reduced and alignment to the
The Australian Constructors Association
industry to remain open throughout the a Framework to guide the delivery of high ‘NSW 10 Commitments to the Construction
has been successful in facilitating This year we provided various submissions
pandemic. Where shutdowns occurred, we quality, safe and appropriate rapid antigen Industry’ improved. Collaboration is not a
knowledge transfer across private and to state agencies on projects, procurement
The Australian Constructors Association worked collaboratively with government screening for COVID. form of contract, but contracts can play
public sectors and setting a program of practices, infrastructure strategies and
has pivoted from years of quiet diplomacy and industry to develop solutions to a big part in facilitating collaboration and
With safety top of mind, the Australian activities to implement agreed change. policies. Our most successful activity was
to become a more vocal advocate for fast-track the reopening. We know the aligning the interests of all parties to achieve
Constructors Association applied the Propelled by our partnership with the NSW convening a joint contract workshop with
change. Using our thought leadership as a construction industry has a very long tail improved project outcomes.
learnings from the NSW experience and and Victorian governments through the Infrastructure NSW, delivery agencies and
springboard for public advocacy, we have and we have worked hard to support all
called for a full re-opening of construction Construction Industry Leadership Forum their external legal counsel to discuss
demonstrated agility in remaining focused parts of the industry.
sites in Melbourne and the ACT, while and Construction Industry Culture Taskforce, ways in which amendments to standard
on the end game of a more sustainable Commencing with the further tightening also working to promote and facilitate
industry, while rallying quickly to capture of already comprehensive COVID operating vaccination. Our members ran toolbox
opportunities and respond to issues such protocols and procedures, a gamechanger information sessions with medical experts
as the shutdown of construction sites in in NSW was the introduction of rapid to inform workers about the different
Submissions
Submission on draft State
response to the pandemic. antigen testing. vaccines available and the protection that Infrastructure Strategy
est Practice Principles
B
Our advocacy efforts have targeted: they offer. Further many of our members Queensland Government Queensland Government
Our members spearheaded rapid antigen
offered paid time away from work to get
• Crisis support testing by running pilots on sites across
vaccinated. thical Supplier Mandate
E Melbourne Airport Rail Link
• State reform Sydney which led to the approval by the
Queensland Government procurement method
Chief Health Officer of a broader rollout
• Federal leadership. Victorian Government
offs Harbour Bypass
C
Crisis support procurement process Joint letter – hold on procurement
A feature of 2021 has been the way NSW Government activity over Christmas/new year
government and industry have come
Submissions Delivery agencies nationwide
urther reopening of NSW
F
ubmission on draft State
S
together to not only respond to COVID all for action to reopen the NSW
C construction sector for major
Infrastructure Strategy 2021 Updated PPP Guidelines
but unite for reform. A broad coalition of construction sector infrastructure projects
Infrastructure WA NSW Government
individuals, associations, organisations NSW Government NSW Government
and government agencies have sought to
Joint letter calling for full reopening
leverage the opportunity COVID presents isruption to infrastructure projects:
D
of NSW construction sector
to create a more sustainable industry and Call for agreed commercial principles
NSW Government
we are extremely proud to be part of this NSW Government
movement.
20 21Federal leadership
While the outcomes of the Australian
Submissions
Inquiry into procurement
Constructors Association’s advocacy efforts Inquiry into skilled migration practices for government-funded
targeting the Federal Government are yet to Australian Government infrastructure
be known, major progress has been made Australian Government
in raising awareness of and generating reenfields Agreements of the Fair
G
support for Federal leadership. Work Amendment (Supporting 021 Australian Infrastructure Plan –
2
Australia’s Jobs and Economic united call for Federal Government
Through our joint submissions and direct
Recovery) Bill 2020 to establish a collaborative
engagement with the Federal Government,
Australian Government leadership group
we are optimistic that in 2022 we will see
Federal Government
the Federal Government perform a more
active role in leading reform.
Inquiry into procurement practices for
Reform of this magnitude will only happen through greater collaboration across all levels of government
and would benefit from greater leadership taken at the Federal level in consultation with industry.
government-funded infrastructure We acknowledge the first step taken by the Federal Parliament at a national level in asking the Committee to
undertake this inquiry, but time is of the essence. We call on each member of the Federal Parliament to ensure
that this inquiry is quickly followed by meaningful actions that create a more sustainable infrastructure industry
House of Representatives Standing for the benefit of all Australians.
Committee on Infrastructure
Yours sincerely
Australian Constructors Association submission
16 July 2021
15 July 2021 Jon Davies Lindsay Le Compte Caroline Wilkie
Chief Executive Officer General Manager: Chief Executive Officer
The House of Representatives Standing Committee Australian Constructors Construction and Infrastructure Australasian Railway
on Infrastructure, Transport and Cities Association Ai Group Association
Parliament House
CANBERRA ACT 2600
Via: ITC.reps@aph.gov.au
Grant Warner Brent Crockford Eric Bugeja
Dear Members of the Standing Committee Chief Executive Officer Chief Executive Officer Chairperson
Australian Institute Australian Owned Contractors Building SMART Australasia
Inquiry into procurement practices for government-funded infrastructure
of Quantity Surveyors
Collectively, we represent the majority of organisations involved in delivering the Commonwealth Government’s
record $110 billion investment in infrastructure projects across the nation.
The Government and Australian taxpayers are relying on our members to rebuild the economy through the
design and construction of economic productivity enabling infrastructure. However, the infrastructure industry
Nicola Grayson Dr Bronwyn Evans Adrian Dwyer
faces several structural challenges that are threatening its very sustainability. The Federal Government, as a direct
Chief Executive Officer Chief Executive Officer Chief Executive Officer
procurer of major projects and as a significant source of funding for jurisdictionally led projects, can play a major Consult Australia Engineers Australia Infrastructure Partnerships
role in resolving these issues and supporting the sustainability of the sector and its supply chain. Australia
Sectors within the infrastructure industry consistently rank as having some of the highest rates of insolvencies in
Australia, and productivity growth over the last 30 years trails that of other significant industries by 25 per cent.
In parts of the industry, women make up only 12 per cent of the workforce and workers are six times more likely
to die from suicide than a workplace incident. For these, and other reasons, the industry is struggling to attract
and retain sufficient people to undertake the future pipeline of work. Ainsley Simpson Michael Ward Kristine Scheul
Chief Executive Officer Chair Chair
The pandemic has exacerbated these existing challenges but has also presented an opportunity to address Infrastructure Sustainability Lean Construction NAWIC National Board
this sustainability crisis, to maximise the social and economic benefits of the record levels of investment in Council of Australia Australia and New Zealand
infrastructure and to set the industry and its supply chain on a more sustainable path.
By just halving the productivity gap between the infrastructure industry and other major industries, an extra $15
billion of infrastructure every year could be delivered for the same expenditure and create significant additional
employment. This will only be achieved by addressing issues of industry sustainability through reform of how
Andrew Chapman Michael Kilgariff
projects are procured and delivered by both Federal, State and Territory Governments.
Chief Executive Officer Chief Executive Officer
Whilst a number of signatories to this letter will be making detailed submissions to the Inquiry, with respect to Queensland Major Roads Australia
Constructors Association
the key issues in the Terms of Reference that impact on the businesses they represent, we all agree on the urgent
need for reforms that drive an improved industry culture, create increased capacity/capability, and ensure that
project commercial frameworks are equitable and align the interests of all parties.
I
22 23Thought leadership Net zero
The Australian Constructors Association
partnered with Autodesk, Consult Australia
and Infrastructure Sustainability Council
Recognising our alignment on key issues with peer industry
in developing the paper A Net-zero Future
associations, the Australian Constructors Association has
collaborated with several industry bodies to reach a large audience
Delivered Through Our Infrastructure
Pipeline. The paper sets out options and
A Net-zero Future
of key stakeholders to influence change.
enablers that can be used to map the path Delivered Through Our
Infrastructure Pipeline
to Net Zero in infrastructure. The pathway
Learning and development guidance
considers the lifecycle of the assets and
The scale of demand for skills across the construction industry is industry change to be successful.
starting to exceed capacity, particularly in engineering occupations.
To address the challenges and gaps around career progression and
development of construction engineers, the Australian Constructors
Association and Engineers Australia have collaborated to develop a
new Construction Engineer Learning and Development Guide. This
industry-led initiative seeks to improve consistency in the training
and development of engineers across the construction sector and to
pave a pathway for construction engineers to be globally recognised
in their area of expertise.
Construction Engineer Learning
and Development Guide
GUIDE TO ENGINEERING COMPETENCY
IN THE CONSTRUCTION SECTOR
NOVEMBER 2021
24 25Partnership for change Government and industry working groups
The Australian Constructors Association and Consult Australia joined The Australian Constructors Association has a seat on many
forces to bring forward sector-wide reform proposals through working groups and actively contributes to discussions focused on
the Partnership for Change initiative. The initiative demonstrates Partnership for Change strengthening the sector. Our participation in such forums includes:
a solutions-based approach to improve productivity and address
Partnership for Change
challenges in the built environment. Digital
Partnership for Change
• Dispute Resolution Board Foundation
The first paper published from the series featured adoption Digital
technology
Partnership for Change
• Transport and Infrastructure Council
Digital
of technology within the construction and consultant sectors. • Australian Broadband Advisory Council
Further papers will be released in 2022.
technology
Partnership for Change papers: Digital
technology
• Wellness in Infrastructure
• Infrastructure Australia Sustainability Roundtable
• Digital technology
technology • Women in Transport
• Model client
• Federal Safety Industry Reference Group
• Multiple design reviews
• Australian Construction Industry Forum
• Reliance on information.
• NAWIC Industry Leaders Collaboration Roundtable.
Partnership for Change: Digital technology | 1
Partnership for Change: Digital technology | 1
Partnership for Change: Digital technology | 1
Partnership for Change: Digital technology | 1
26 27The Australian, Australia
Page 1 of 1
Communications
SUSTAINABILITY SUSTAINABILITY In mid-2021, we changed tack and united our industry peers in
calling for urgent reforms to address the industry crisis. Led by the
E
veryone wants to see a more sustainable construction a deliverability report to address how the recommendations
When it comes to sustainability, industry. That is the key message I have found having should be implemented, many signs again point back to the
Government and industry all engaged extensively with industry stakeholders while Federal Government.
in the role of CEO of the Australian Constructors While calling out the Federal Government, I am mindful
largely agree on the problems that
need to be addressed and we even
agree on what needs to be done to
Association these past 12 months.
Developing and sharing best practice is one way this can
be achieved and there are many positive examples from
that all stakeholders have a role to play and in working
collaboratively we will be far more successful. One of the
Australian Constructors Association’s most significant
Australian Constructors Association, 14 industry bodies supported
collaborations such as Construction Industry Leadership and strategic collaborations is the Construction Industry
an open letter in response to the Federal Government’s Inquiry
fix them. We just need to find a way Forum and Construction Industry Culture Taskforce. Leadership Forum – a joint collaboration with the governments
to fast track their implementation. The greatest challenge is achieving consistent and of NSW and Victoria.
Jobs strong but more skills needed
widespread adoption of best practice across all the states, The Construction Industry Leadership Forum is targeting
territories and delivery agencies. This can only be achieved initiatives that will seek to redefine value for money, improve
into procurement practices for government-funded infrastructure.
through Federal Government leadership and, dare I say it, a collaborative framework selection of appropriate commercial
Broadcast media
carrot and stick approach. models, and enhance capability, capacity and attractiveness of
the industry.
THE THREE PILLARS OF SUSTAINABILITY
The Australian Constructors Association believes that a WELLBEING AND CULTURE IMPROVEMENTS Few nations can match our post-Covid economic performance
sustainable construction industry is built on the three key
pillars of equitable and aligned commercial frameworks, a
positive industry culture, and sufficient capability, capacity and
While the momentum for procurement reform gains pace,
improving the culture of the industry also needs to become
more of a priority. In an international first for the construction
Securing an exclusive with The Australian (valued at over $45,000), Amid difficulties and stress over the and across time will impede prosperity and
skills to execute the projects it is called upon to deliver. Each industry, a draft Culture Standard will soon be released for
month, will attempt to address some of the
In gearing up for our advocacy efforts, at the start of the year the pillar is interlinked. Improvement in industry sustainability
requires improvement in all three pillars.
While there is no silver bullet, the way in which projects are
public consultation. Based on academic research, the Culture
Standard will seek to build the foundations for an improved
culture, such as by defining actions that will improve the the opportunity national leadership presents in driving greater lockdowns in our two largest cities, the
spread of the Covid-19 Delta variant and the
wage rises. The skills shortages have been
exacerbated by the pandemic as lack of
problems, including workforce issues.
procured is a major contributor to the sustainability problem wellbeing of people employed in the construction industry. Whatever the limits of the quarantine
pace of the vaccine rollout, Thursday’s
Australian Constructors Association undertook a proactive media immigration and international border
and it can be readily addressed if all parties agree on the With many construction sites operating six to seven days
need for reform. The current system favours lowest price
over best value. It works to political deadlines rather than
construction schedules. It assumes risk can be transferred
per week to meet delivery timeframes, the Culture Standard
recognises the challenges of long work hours and the need for
people working in our industry to have adequate time to rest
productivity was brought into the public domain. labour market figures underlined the restrictions have left industries short of the
system, falling unemployment and
shortages of skilled workers in construction,
with no comeback and it promotes a focus on winning short- and pursue life activities outside of work. We not only need resilience of the Australian economy. The staff they need. Woeful productivity in the taken in tandem, point to the need to open
campaign to raise awareness of the industry’s challenges and the term commercial battles rather than developing long-term
partnerships that foster innovation and improved outcomes.
Capability and capacity constraints are unlikely to be
to support the physical health of our workforce but also its
mental health.
The Culture Standard is an initiative of the Construction
figures reflect a performance matched by
few other nations. The latest Australian
construction sector, Tom Dusevic writes on the way to skilled immigrants sooner rather
Friday, is putting the Morrison
LIMITED
addressable through skilled migration for the foreseeable Industry Culture Taskforce – another Australian Constructors
than later. The economy retains some
opportunity COVID presents. This proactive media campaign resulted Bureau of Statistics data shows
future, and given it takes over six years to train an engineer, Association partnership with the governments of NSW and
large scale training initiatives are not an option either. Victoria. It has the potential to have a significant impact on the government’s $110bn infrastructure pipeline capacity to expand employment and plug
The main options to address skills shortages are to use entire industry, and I encourage everyone to provide feedback
unemployment dropped to 4.9 per cent in skill shortages. The ABS figures show the
at risk ofAUTHOR:delaysTom andDusevic
cost blowouts, to the
WINDOW OF
procurement to drive changes in industry culture and attract when the draft is published.
AUTHOR: Matt Johnston SECTION: GENERAL NEWS ARTICLE TYPE: NEWS ITEM AUDIENCE : 303,140 AUTHOR: Tom Dusevic SECTION: GENERAL NEWS ARTICLE TYPE: June,
NEWS itsITEM
lowest level since
AUDIENCE June 2011. The
: 94,448 SECTION: GENERAL NEWS ARTICLE TYPE: NEWS ITEM AUDIENCE : 94,448
in the publishing of opinion pieces across the Australian Financial
back those that have left the industry in recent years,
particularly women. UNITE FOR REFORM PAGE: 10 PRINTED SIZE: 286.00cm² REGION: VIC MARKET: Australia ASR: AUD 15,880 WORDS: 523 PAGE: 4 PRINTED SIZE: 360.00cm² REGION: National MARKET: Australia ASR: AUD 9,262 detriment PAGE: of 6taxpayers.
PRINTED The SIZE: problems
361.00cm² have REGION: National underemployment
MARKET: Australiarate – which
ASR: measures
AUD 9,287
We can also use procurement to reduce waste and improve If we are successful in our reform efforts, we would see
ITEM ID: 1517774326 WORDS: 658 ITEM ID: 1517821885 51,600 full-time jobs created last month WORDS: 762 ITEM the proportion of workers with jobs but
project productivity. Just a halving of the productivity gap procurement frameworks selected based on project specifics prompted the leaders of ID:
14 1472880739
bodies from the
OPPORTUNITY
between construction and other industries would enable an rather than market cycles, projects awarded based on best were offset by a 22,500 decline in part-time looking for more hours – edged up to 7.9 per
Review and various trade press publications. extra $15 billion of infrastructure to be built every year for the
same budget.
value rather than lowest cost and compliance with an industry
culture standard being a mandatory requirement of any
procurement process.
13 OCT, 2021 13 OCT, 2021 employment. Young people are benefiting
crisis-prone sector to write to a federal
16 JUL, 2021
parliamentary committee calling for urgent cent from 7.4 per cent in May.
CAN WE BUILD IT? Shortages threatening construction boom from the rebound, with youth Builders' infrastructure reform plea: 'it'll pay off
FOR
WALKING THE WALK
Since joining the Australian Constructors Association, I
These changes would not only benefit the players in the
construction industry, but also the wider community, because action on productivity-enhancing reforms Effective skills training will be vital for
unemployment declining half a percentage in spades' maximising the skilled workforce and
have been advocating for the Federal Government to step ultimately, we could build more infrastructure with less money,
to improve procurement and delivery
up. The Federal Government is uniquely placed to coordinate with a productive and healthy workforce.
point to 10.2 per cent – its lowest level since
PROCUREMENT
reform and has many reasons to do so, not least of which is A feature of 2021 has been the way the whole of industry
practices. The right reforms, the signatories productivity, and boosting opportunities for
the desire, as noted in the updated Intergenerational Report, has come together to respond to COVID and unite for
2009. The nation’s recovery has produced the underemployed.
to see greatly improved productivity in our industry and the reform. There is a broad coalition of individuals, associations
suggest, could create an extra $15bn of
The Australian Constructors Association has emerged eight consecutive months of falling
wider economy. and organisations all seeking to leverage the opportunity
Herald Sun, Melbourne The Australian, Australia The Australian, Australia
infrastructure a year – equivalent to the cost
REFORM
With Infrastructure Australia soon to release its updated COVID presents to create a more sustainable industry. I am
Infrastructure Plan we again run the risk of the nation’s extremely proud to be part of this coalition with the support
Page 1 of 1 unemployment, and the economy Page 1 of 2 is larger Page 1 of 1
independent infrastructure advisor providing great of the Australian Constructors Association. The window of of three Western Sydney Airports.
recommendations that remain just that – recommendations. opportunity created by COVID will not stay open indefinitely – than when the pandemic began. The impact
Australian Constructors Association
CAN WE BUILD IT?
The real challenge is ensuring these recommendations the time for action is now!
as the preeminent voice for the construction industry.
are actioned. With Infrastructure Australia also working on of the current lockdowns will be evident in
chief executive Jon Davies, whose body
Builders’ infrastructure reform plea: ‘it’ll pay off in spades’
by Jon Davies, CEO, Australian Constructors Association
68 September 2021 // Issue 20 www.infrastructuremagazine.com.au 69
Shortages threatening construction boom economic data in coming months. As Scott
Morrison said on Thursday: “The thing
represents top-tier
EXCLUSIVE
service most mega projects,
companies that build
told cabinet
Dusevic
and
One of the key priorities for and cities, the 14 signatories said
this the
www.infrastructuremagazine.com.au September 2021 // Issue 20
Labor is pushing a “Buy Austra- on time or the economic repair the national year was the industry “faces several struc- ‘The piecemeal
government isabout
countingCovid-19 is – particularly with the new
TOM DUSEVIC approach of
NATIONAL CHIEF REPORTER lian” model. IA’s stocktake docu- on.” Morrison
TOM DUSEVIC government “is essentially relying
“expediting infrastructure projects tural challenges that are threaten-
leaving it to the
ments the chasm between grand Published Delta strainthe– as I said many times, it writes
on Wednesday, NATIONAL CHIEF REPORTER to support job creation”. ing its very sustainability”.
Australia lacks the skills, equip- ambitions and limited means. report says Victoria, Queensland on a broken industry to rebuild the Last month, Barnaby Joyce re- “Sectors within the infrastruc- individual states is
Major projects face skill squeeze
ment and materials to deliver an the rules.” The Morrison government’s placed Michael McCormack as In- ture industry consistently rank as ki ’
not working’
unprecedented public infrastruc- Public infrastructure accounts
and Tasmania will experience the economy”. The current approach was
At this
greatest risk of labour stage, the labour market is
shortage: $110bn infrastructure pipeline is at frastructure, Transport and having some of the highest rates of
ture pipeline, putting a speed-limit for 20 per cent of construction ac- “At points between 2021-25, all wasting
risk of delay and taxpayers’ money,
cost blowouts as a jeopardising
Regional Development theMinister, insolvencies in Australia, and pro- JON DAVIES
on recovery from the pandemic tivity and competes with private tracking
three states will require a awork-year ahead of Treasury’s forecasts crisis-prone industry appeals for after ousting him as Nationals ductivity growth over the last 30
AUSTRALIAN CONSTRUCTORS
completion of projects and, by extension,
ASSOCIATION
INDUSTRY INSIGHTS INDUSTRY INSIGHTS
MATT JOHNSTON recession, according to the first engineering, commercial and resi- sweeping reform of procurement
dential building for materials and in the May
force that is approximately federal budget, which estimated
twice years trails that of other significant
audit of the industry’s capacity. the size of projected supply avail- hampering
and delivery practices.the nation’s post leader Covid-19
in a partyroom spill. Mr Da-
industries by 25 per cent,” they said
to save time and effort developing new contracts or amending
COST blowouts hitting major reinforce the importance of gineering students came from Infrastructure Australia has workers. IA notes, globally, 75 per unemployment
able within their borders”. would be at 5.5 per cent in In what construction sector vies said the industry needed fed-
existing forms. The best example of which is the NEC suite of
projects are set to worsen, with governments unlocking pro- overseas before Covid-19 assessed the demands of a record As well, the report said mi- economic
leaders consider an recovery.
extraordinary eral leadership to raise sovereign in the letter.
June and would reach 5 per cent by the
contracts from the UK.
cent of road projects were deliver- “In parts of the industry,
post-pandemic labour and ma- struck, a shortfall in trained show of solidarity, 14 bodies have capability and to broaden the sup-
POSITIVE INDUSTRY CULTURE ductivity and innovation to
$218bn in taxpayer-funded con- ed over budget; at 80 per cent, gration would help address some Signatories of the letter to the women make up only 12 per cent of
terials shortages creating an workers – made worse by a struction over the next five years urban and high-speed rail had the middle
workforce shortages but of
“it isnext
un- year. The jobless figure also written to a federal parliamentary ply chain, which includes design-
the workforce and workers are six
While there have been some improvements to industry
culture in recent times, construction workplaces and “unprecedented” public infra- support infrastructure delivery and concluded governments and greatest bent for cost overruns. likely to be sufficient to grapple parliamentary
committee calling forcommittee
urgent saymaterial
ers, the extractors and
structure squeeze. in a constrained environment.” lack of women in the industry businesses are not up to the task, is just
for below where the Reserve Bank action on productivity-enhancing quantity surveyors. times more likely to die from sui-
construction sector is riddled with
behaviours need to take a quantum leap if we are to make
our industry a more resilient and attractive sector to work in, Victoria has a massive num- – will worsen. with the demand civil engi- cide than a workplace incident.
policies they claim could deliver “Infrastructure Australia
particularly for women.
And up to 105,000 well-paid
ber of projects under way or Globally, 75 per cent of
risking delays and cost blowouts IA chief executive Romilly predicted
neers, particularly in the face it would
of be by the end of the year For these, and other reasons, the
The Construction Industry Culture Taskforce will shortly jobs risk being unfilled by 2023 on road and rail mega projects. Madew said the capacity tool and global demand for these skills as insolvencies,
more jobs and an extra poor
$15bnmental
of health,
should abysmal
immediately be tasked
industry is struggling to attract
start consultation on a draft Culture Standard that seeks to due to global competition for being planned, but Infrastruc- transport projects – which IA’s Market Capacity Report research underscored “the need andtheitworld
countries around is onlever-
track to meet the bank’s best-case infrastructure every year, equiva- with the job of bringing together
align all parts of industry on the requirements necessary to ture Australia warned it would make up four out of five dollars details a doubling over three years for a co-ordinated project pipeline productivity,
lent to the cost of three low levels ofindustry
Western employment and all levelsofof govern- and retain sufficient people.”
make this leap. workers, according to a new
alter the way it assesses and spent on Australian public in- scenario
age infrastructure as part ofof 4.5
post- per cent by December, The signatories are lodging
report by federal advisory body in investment to a peak of $52bn in
to manage capacity constraints Covid stimulus strategies”. women,
Sydney and skills shortages.
Airports. mentSuchto achieveissues,
real and lasting re-
their own submissions to the in-
SUFFICIENT CAPACITY, CAPABILITY AND SKILLS
Infrastructure Australia. ranks new projects given the frastructure – have already and provide confidence and Patrick Commins writes. Thursday’s
To avoid capacity and capability constraints in the long need to co-ordinate pipelines. blown their budgets. 2023, as governments around the certainty for both industry and and the need
According to theto reform skills
signatories, formtraining and
of how projects are procured quiry into procurement practices
term, there needs to be increased collaboration between Victoria is set to be among
This could affect the An- Some of the worker and globe compete for talent and stoke milestone is likely to encourage unions to the construction industry is and delivered,” Mr Davies said. for government-funded infra-
government and industry to better identify potential skills the hardest hit by looming economies via the fast-acting mul-
government”. education,
wracked should be
with insolvencies, poortackled Theat the national
Australian understands structure.
shortages well in advance. This can be achieved through skills
skills gaps, putting more pres- drews government’s first stage materials issues have already “While infrastructure invest- seek wage rises given Josh Frydenberg’s mental health, woeful pro-
level through IA’s next five-year infrastructure Consult Australia chief execu-
low levels the nationalplan, cabinet
mapping and transparent, accurate project pipeline data. of the Suburban Rail Loop, caused market problems, with tiplier of public works. IA found ment is rightfully a key com-
The data could then be used to smooth resource peaks by sure on already stressed bud- the yearly 30 per cent acceleration recent comment that substantial wage ductivity, of employ- due for release next month, tive Nicola Grayson said the joint
which is worth an eye-water- “fewer potential bidders, a rise ponent of our national Covid-19
amending project start dates or to inform training initiatives to gets and time frames. of investment “is beyond what the mechanism. The industry needs federal
ment of women and acute skills will try to enhance reform incen- letter reflected the urgent need for
ing $34.5bn and would create in non-compliant bids and, in recovery, we need to ensure we are growth would not be possible until
CONSTRUCTION’S COVID-19
address potential shortfalls.
Almost $220bn will be shortages, which the pandemic tives in federal-state partnerships, reform that improved industry
In the short term, with closed international borders and long
pumped into roads, rail, hospi- an underground link between some cases, no bids at all”. market has expressed confidence equipped to deliver this once in a leadership,
has exacerbated. as Mr Davies says, call forto raise reviews and
post-project culture, created increased capacity
lead times to train new people, we need to focus on increasing
the efficiency of our procurement and delivery processes. tals and other public-funded Cheltenham and Box Hill. Australian Constructors in being able to deliver”. generation infrastructure spend,” unemployment had a “four in front of it”. sovereign capabilityAs-and toaddress
Australian Constructors broaden areas oftheacute industry and capability, and ensured pro-
The “tidal wave” of work, as it is Ms Madew said.
For example, we should put our valuable resources to work
projects throughout the next The report notes Victoria, Association chief Jon Davies
called by an apprehensive indus- While the decline in unemployment is a sociation chief executive Jon Da-
supply chain, which includes
need, such as workforce issues.
designers,
ject frameworks were fair.
OPPORTUNITY FOR REFORM
optimising designs and de-risking projects through advance Queensland and Tasmania said industry reforms were “The challenge of driving a vies, whose body represents top- IA’s chief of policy and re-
five years as the country builds
works, rather than tying them up at tender producing volumes
of information that add little or no value. like never before, providing will experience the greatest needed to drive productivity
try, will produce a two-thirds rise
in demand for plant, labour, equip-
step-change in infrastructure pro- strong positive, skills shortages in key material extractors and quantity
tier companies that construct and search, Peter Colacino, said the
surveyors.
Ms Grayson said reforms
risk of labour shortages and and innovation “so we can do ductivity and innovation is a should focus on raising skills, com-
THE OPPORTUNITY
work for 288,000 people.
will need to import skills. more with less”.
ment and materials over the com- shared one – it cannot be solved by industries, such as construction, and poor service the majority of mega pro-
Infrastructure
jects, Australia’s leader
said the federal government
local industry “has slipped from a
nexttofive-year
laggard on construction petition and diversity by breaking
The peak of spending will ing five years, with one-quarter of
by Jon Davies, Chief Executive Officer, Australian Constructors Association
If we could just halve the gap in productivity growth that has
“At points between 2021 “Part of the solution is gov- governments or industry alone.” productivity are acting as a brake on growth, “is essentially relying on a broken
infrastructure productivity”.
plan, to be released
up mega projects into smaller units
“There’s next
been created between the construction industry and other suppliers saying it was a “near im- Ms Madew said one of the to lift the capacity of small and me-
industries over the past 30 years, we could construct an extra be in 2023, which is when and 2025, all three states will ernment shifting its mindset to possibility” to cope with this crest. industry to rebuild the economy”. an opportunity to
$10 billion of infrastructure every year for the same level of
“The piecemeal approach of more consistently adopt best prac- dium-sized enterprises.
With great optimism, I anticipate 2021 workforce constraints will also start buying its infrastructure The federal government’s key markers of success of the capacity
of the most pressing problems facing the industry, we All three pillars are interlinked, and therefore improvement expenditure! This will be vital in a post-COVID-19 world with require a workforce that is ap- leaving it to the individual states is tice to unlock a step change in con- Based on modelling from BIS
then developed a framework for a more sustainable sector, in one requires improvement in all. As an example, it is high levels of government debt, but no less of a requirement to peak and a carefully co-ordi- based on best value not lowest adviser also highlights how border tool would be in attracting people
will be the year that marks the turning proximately twice the size of not working,” Mr Davies said. struction productivity,” Mr Oxford Economics, the industry
point in the quest for a more sustainable
followed by an industry charter comprising ten commitments widely understood that adversarial commercial frameworks construct productivity enhancing infrastructure. nated national pipeline will be cost at the tender box,” Mr closures and early retirement have into a sector where only 12.7 per argued that by halving the gap in
to reform embraced by Australia’s leading construction and negatively impact culture, and a positive industry culture is a As a starting point, we need more collaborative partnerships
needed. projected supply available Davies said. “It is wasting taxpayers’ money Colacino said.
construction industry. We have a unique infrastructure contracting companies. key factor in attracting people into the industry. between state governments and the private sector to enhance within their borders,” it says. exacerbated skills shortages. cent were women, and where early productivity growth between con-
Infrastructure Australia’s matthew.johnston@news.com.au and putting at risk timely delivery “This will involve adopting
opportunity to achieve real and lasting Amongst other things, we identified that a sustainable the three pillars supporting the sustainability of the industry.
Infrastructure Australia retirement was the norm. struction and other major indus-
construction industry is one built on the three key pillars EQUITABLE AND ALIGNED COMMERCIAL FRAMEWORKS To fully realise this opportunity, the Federal Government research forecasts a shortage By 2023, there will be 105,00 of the record pipeline of infrastruc- modern methods of construction,
reform, but it will require the support of chief Romilly Madew said the Chief executive of the Austra- tries it could construct an extra
of: equitable and aligned commercial frameworks, a strong Part of the solution to the challenges faced by the industry needs to take a more active role in defining and incentivising
of 70,000 engineers, scientists unfilled jobs in the sector or 48 per ture projects and, therefore by ex- such as standard designs, prefabri-
the entire sector. positive culture, and the capability, capacity and skills to is greater use of contracts that promote a collaborative the use of best practice procurement and delivery processes. lian Constructors Association Jon $15bn of infrastructure every year
and architects; 15,000 struc- Infrastructure Market Ca- cent higher than projected supply. Davies said governments needed
G
execute the projects it is called upon to deliver. industry culture and incentivise innovation. True value can The Construction Playbook, recently published by the British
pacity report “provides a level tension, the nation’s post-Covid- cation of components, and supply and employ an extra 15,000 people
overnments are relying heavily on the construction only be achieved when all the parties' interests on a project Government, accompanied by a direction to use it or explain tural and civil trades; and The workforce strains are ex- to fix the causes behind a 25 per 19 economic recovery.” chain engagement. for the same level of investment.
industry to lead the economy out of recession, but are aligned, and when open and transparent sharing of why not, is a good example of how this could be done.
19,000 project management of visibility of the major project pected to be most acute in Victoria, cent productivity gap that plagued
our industry is sick. Profitability is at an all-time information is encouraged. In comparison to many other countries, Australia has done A senior Morrison government “The step-change won’t just be In the May budget federal
professionals. pipeline and resulting demand Queensland and Tasmania, with the sector, high rates of insolvency
low and productivity growth over the last thirty This is not a call for widespread use of alliance contracts, a remarkable job in managing COVID-19. In part, this is the source conceded infrastructure delivered through a traditional Treasurer Josh Frydenberg an-
years trails that of other significant industries by 25 per although the use of alliance contracts to deliver the Level outcome of strong collaboration between the public and private
Meanwhile, shortages of for skills, labour and materials IA setting out a reform program to and gender imbalances, and that it project-to-project, lowest-cost nounced an additional $15.2bn in
outcomes had been poor, citing
cent. Women make up only 12 per cent of the construction
workforce, and construction workers are six times more likely
Crossing Removal Program in Melbourne is delivering an
exceptional outcome. There will always be instances where the
sectors. This collaboration is transferable, and it is incumbent
upon us all to grasp this unexpected opportunity for change cement, concrete, steel and rail that governments have not
had until now”.
address the looming deficits, in-
cluding better project sequencing,
should be led by Canberra. © News Pty Limited. No redistribution is permitted. This content
blowouts and delayscan only
in Victoria be copied and communicated with spending,
mentality, it will require greater infrastructure a copyright taking licence.
to die from suicide than a workplace incident. use of lump sum or design and construct contracts are more with both hands in order to rebuild trust and develop a more parts will also bite hard. “Just halving the productivity and Queensland, and argued bet- collaboration between public cli- the federal 10-year rolling com-
There is a broad consensus that this sustainability appropriate. However, there is no reason why these traditional sustainable industry for the benefit of all Australians. The report says co-ordi- training and digital-tool uptake. gap means we could be getting an ter pricing signals, workforce ents, planners, designers, financers mitment to $110bn.
“The volume at the peak of
crisis must be addressed for the construction industry to commercial frameworks cannot be drafted to contain more nation between states and in- Commissioned by Scott Morri- extra $15bn every year from the development and collaboration and operators – as well as contrac-
deliver the planned pipeline of projects efficiently, with collaborative and equitable provisions, particularly regarding the investment, expected in
For more information, and to view ACA’s dustry is critical to solving son and first ministers in March resources we’re now using,” Mr were required. “We don’t do infra- tors – to support innovation.”
the resources available, whilst leveraging opportunities to management of project risk. 2023, has never before been
increase training, local procurement and engagement of More collaborative and equitable forms of contracts are in
document series and industry charter, please visit
some of the problems, with last year, the report will dampen Davies told The Australian. structure well in this country, but In the letter to Liberal MP John
www.constructors.com.au/initiatives/industry-reform. delivered by the Australian in- pre-election claims of a home-
indigenous and social enterprise. use elsewhere in the world and could easily be adopted here
frastructure market,” the re- “migration playing a signifi- “Without addressing these we have an opportunity to address Alexander, the chair of the House
In late-2020, the ACA published a series of documents
cant role”. grown investment bonanza. underlying issues, there’s a real those issues across all levels of gov- of Representatives standing com-
that charted a clear way forward. Starting with an analysis port says. The Coalition touts a $110bn
“These insights further But given that a third of en- risk the pipeline won’t be delivered ernment,” the source said. mittee on infrastructure, transport
30 March 2021 // Issue 18 www.infrastructuremagazine.com.au www.infrastructuremagazine.com.au March 2021 // Issue 18 31 10-year spending spree, while
© News Pty Limited. No redistribution is permitted. This content can only be copied and communicated with a copyright licence.
28 29
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