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WA’s peak civil infrastructure industry group says it’s unfair to criticise the WA State Government for the Federal Government’s failure to adequately address shortages of skilled excavator operators.
Civil Contractors Federation WA CEO Andy Graham said the State Government should be commended for consistently striving to provide excavator operators and other civil construction workers fair access to migration and training incentives – in stark contrast to the Federal Government’s appalling record in both areas.
“There’s no doubt the Federal Government has again dropped the ball with the exclusion of excavator and crane operators from its Core Skills Occupation List,” Mr Graham said. “But for our industry, this is just another setback in a long history of civil construction skills shortages being ignored by the Feds.”
Mr Graham said the omission of skilled excavator and crane operators from the Core Skills Occupation List (CSOL) was inevitable given the Federal Government’s insistence on basing the list around the outdated ANZSCO skills classification system, which classifies all plant and machinery operators as unskilled and therefore ineligible. He said CCF had been advocating for years for the Federal Government to abandon this ‘computer says no’ attitude and recognise genuine civil construction skills shortages, with no success.
“But recent commentary that the State Government should share the blame for Canberra's mess makes no sense either,” Mr Graham said. “In fact, our State Government deserves a pat on the back for consistently acting to boost civil construction skills, and showing it understands that you can't build houses without housing lots, which requires skilled plant operators and pipelayers.
“We saw evidence of this only a few days ago when excavator operators and pipelayers were included as eligible for the $10,000 relocation bonus, aimed at encouraging interstate migration.
“And earlier this year, the State Government ensured the inclusion of excavator, loader and directional drill operators in its new WA Designated Area Migration Agreement, which helps employers bypass Federal migration roadblocks.”
Mr Graham said the State Government was also a strong supporter of civil construction skills through its apprenticeship funding programs – unlike the Federal Government, which refuses all civil construction apprentices, including apprentice plant operators, access to its Australian Apprenticeship Incentive System funding.
“This State Government actually created the civil construction apprenticeship, upgrading it from a traineeship three years ago,” Mr Graham said. “And our apprentices enjoy the same level of Construction Training Fund financial support as the building trades.
“In addition, civil apprentices working in residential subdivision construction are eligible for the State Government’s ongoing Group Training Organisation Wage Subsidy program.
“With this track record of practical actions supporting civil construction skills, we think it’s absurd to suggest that the Premier and his Government are somehow responsible for the Federal Government’s continued failure to show anything like a similar level of support.
“By all means though, we encourage the Premier to use his influence to try to sway Federal policy – the more voices calling for common sense, the better.”
Tracc Civil’s Watermark Stage 1 Bulk Earthworks and Civil Works project is the recipient of the new WA Earth Award for Land Development projects.
WA Earth Awards Chief Judge Peter Rowles said the Watermark project was the strongest of three high-quality land development projects entered by Tracc Civil in the 2024 WA Earth Awards.
“It was great to see Tracc put forward three projects this year, as quite often we don’t see any entries from subdivision contractors,” Mr Rowles said.
“With this special Earth Award we want to celebrate excellence in land development and challenge the perception that building a subdivision is just routine civil construction.
“In many ways, it can be just as, if not more challenging to build a subdivision than a major government road project. Land development contractors need to manage earthworks, drainage, sewer, water, electrical, NBN, gas, pavements, concrete and other structural works as well as environmental, safety, and community engagement – often with minimal resources and sometimes to incomplete designs and very tight schedules and budgets.
“That’s why we think land development deserves an Earth Award. We hope other states agree and it can become a national award.”
CCF WA CEO Andy Graham said it had been a pleasure to congratulate the Tracc team on their win.
“We originally thought of inaugurating this award next year, as part of our 50th birthday, but the judges were so impressed with the quality of Tracc’s work at Watermark that we thought it would be a shame to wait,” Mr Graham said. “It’s a project that certainly deserves to be recognised.”
Tao Bourton (Yolk Property Group), Frank Janssen (Tracc Civil), Earth Awards judge Peter Rowles, Simon Hull and Debarnab Shankar Roy (Tracc Civil) on site at the Watermark project.
The Civil Contractors Federation commends the Federal Opposition’s $5 billion policy to fast-track the construction of housing enabling infrastructure.
CCF National CEO Nicholas Proud said: “You cannot spend a dollar on housing until you spend a dollar on housing enabling civil infrastructure. Water, sewerage, energy, and roads must come first for new housing estates, and infrastructure capacity upgrades are required in brownfield areas.
“Infrastructure constraints are a major reason housing supply is at decade lows. While other forms of stimulus have been tried, housing enabling civil infrastructure will be key to unblocking housing supply pipelines and unlocking doors.
“Such policies are not new, but they are highly effective. Post-World War II, state governments competed to provide housing enabling infrastructure to attract migrants. Since that time, we have shifted infrastructure costs onto the end consumer.
“The Federal Opposition’s policy recognises that the cost of enabling infrastructure is blocking the activation of land for housing. Addressing this ‘missing link’ will help revive housing starts.”
Major government transport, water and maritime infrastructure projects have been honoured at the Civil Contractors Federation WA’s annual Earth Awards for excellence in civil construction.
The Earth Award in the highest value category, for projects over $150 million, was a tight three-way contest between major transport projects Tonkin Gap, Yanchep Rail Extension, and the New Fitzroy River Bridge, with the Tonkin Gap project just prevailing.
In the $75 million - $150 million category, State-owned land developer DevelopmentWA’s Ocean Reef Marina Breakwaters project just edged out the Thomas Road Over Rail Bridge, while Water Corporation’s Quinns Main Sewer project claimed the Earth Award in the $30 million - $75 million category.
CCF WA Chief Executive Officer Andy Graham said the dominance of State Government projects in the high-value project categories underlined the importance of public infrastructure to the civil construction sector.
“Civil contractors love building iconic public infrastructure, and if that involves some unique challenges, then all the better,” Mr Graham said.
“Friday night’s Earth Awards gala dinner was a celebration of infrastructure achievements big and small, with 21 finalists across the seven categories.
“Congratulations to all the WA Earth Award winners and we wish them well at the National Earth Awards in Canberra in November.”
2024 WA Earth Award winners
Project Value up to $2 million: Neo Civil – Ocean Beach Seawall (Client: Shire of Denmark)
Works for the seawall included installation of 38 circular hollow steel piles; installation of a 75m retaining wall incorporating vinyl sheet piles with timber and steel walers and approximately 1000m of jarrah cladding. 1200 tonnes of core and armour rock were used. Local conditions and unforeseen delays in supply of materials presented challenges in staging the works, and the onset of winter necessitated acceleration of the construction programme for the seawall.
Project Value up to $2 - 5 million: DJ Mac Cormick Constructions – Baldivis Stillwater Drive Type 350 Pump Station (Client: BMD Constructions for Water Corporation)
Custom fabricated formwork, with an integrated safety platform, allowed working on each liner from the middle of the caisson up to the final pour height, ensuring safety and quality and allowing a fast-paced concrete pour sequence. Caisson shafts were constructed over 11m deep, with 10.4m being below the groundwater table, presenting significant engineering challenges. DJMC’s innovative approach included sacrificing entrance rings to prevent shaft flooding post micro-tunnelling, and a custom-manufactured pick attached to the clamshell excavator to prevent the caissons from sinking on an angle.
Project Value $5-10 million: Maritime Constructions – Carnarvon Dredging and Babbage Island Spit Stabilisation (Client: Department of Transport)
Access to the Carnarvon Fascine had become restricted following a cyclone in 2017. Dredged material was pumped to an outfall point on the Babbage Island Spit and directed through a network of temporary earthen bunds before the return water was released into the ocean. The design called for a dune shape mimicking a natural dune, including out-of-phase undulations along the dune. Operators were provided varied target levels with relatively large tolerances, so that the final surface appeared to have been shaped by nature.
Project Value $10-30 million: DM Civil – ATCO East Perth Power Station Pipeline (Client: ATCO Gas Australia)
DM Civil constructed around 7.6km of DN250 steel high pressure gas pipeline in two packages, using a mixture of horizontal directional drilling, pilot boring and open excavation. Significant challenges included simultaneous construction operations with many third parties, including major transport projects and another ATCO gas pipeline project; and works on extremely busy arterial roads and in tight suburban and industrial areas, requiring intensive traffic management. Innovative construction methodologies expedited the works and reduce the impact on stakeholders and the built environment.
Project Value $30-75 million: Quinns Main Sewer Extension & Associated Works – Rob Carr and Water Corporation (Client: Water Corporation)
This design and construct project featured 1.8 kilometres of tunnelling, including a technically challenging curved drive over 500 metres long beneath a freeway and railway. With shafts reaching depths of up to 27 metres, and the incorporation of two vortex structures, the engineering precision showcased was exceptional. Stakeholder management was crucial, involving coordination with schools, residents, and multiple government bodies to minimise impact and enhance community relations. Safety and environmental stewardship were paramount, constantly managing risk for the team, the public, and the national park.
Project Value $75-150 million: WA Limestone and Italia Stone Group Joint Venture - Ocean Reef Marina Breakwaters (Client: DevelopmentWA)
The JV constructed the breakwater and revetment structures with a combined length of 2km of seawall and 1km of revetment wall. The work scope included reuse of existing breakwater material; placement of geotextile, limestone core armour and granite armour; and excavation of dredging areas. Material supply was the biggest challenge for the project, with the management of importing 1.25 million tonnes of rock across more than 30 delivery sites impacting the delivery schedule. Working with inclement weather and completing significant trucking and earthworks within an urbanised area were also challenges.
Project Value >$150 Million: Tonkin Gap Alliance – Tonkin Gap Project and Associated Works (Client: Main Roads WA and Public Transport Authority)
The Tonkin Gap Alliance, comprising of BMD Construction, Georgiou Group, WA Limestone, BG&E and GHD, worked with Main Roads and Public Transport Authority to deliver a project that removed a well-known bottleneck and created thousands of jobs and better connectivity. The project delivered improved traffic flow and safety, and enhanced facilities for cyclists, pedestrians, and the community. Its supply chain involved over 300 subcontractors and suppliers delivering packages of work with a focus on local spend and supply, emerging and Aboriginal-owned businesses and small and medium-sized enterprises.
Judges' Award: Fitzroy Bridge Alliance – The New Fitzroy River Bridge Project (Client: Main Roads Western Australia)
The original bridge was damaged beyond repair by floods in January 2023. Delivered by the Fitzroy Bridge Alliance comprising BMD Constructions, Georgiou, and BG&E for Main Roads Western Australia, the project began in February 2023 and the bridge opened to all traffic in December 2023, six months ahead of schedule. Strong collaboration with government, local and national suppliers and contractors, and the community contributed to the high quality and speed of the project delivery. Key outcomes included improving the safety and climate-resilience of the transport link and supporting social and economic development of the Fitzroy Valley.
For photos of projects and presentations, contact Emily Giglia egiglia@ccfwa.com.au
The Civil Contractors Federation welcomes the appointment of Mr. Mark Irving KC as the independent administrator of the Construction and General Division of the CFMEU and its associated state branches.
CCF National CEO Nicholas Proud said: “This appointment marks a critical and long-awaited turning point in addressing the deeply ingrained culture of intimidation and coercion that has plagued civil construction sites across the nation.
“For too long, our members have operated under the shadow of these aggressive practices, which have stifled productivity, inflated costs, and created an environment of fear and uncertainty. The presence of an independent administrator of Mr. Irving’s calibre brings a renewed hope that the CFMEU can be steered back to its fundamental purpose—representing the legitimate interests of workers, rather than perpetuating a culture of hostility.
“The role of the administrator is not just procedural; it is pivotal in driving cultural change within the union. Mr. Irving has a massive and important responsibility to guide the CFMEU back to its core mission, ensuring that it genuinely serves the needs of its members and restores trust and respect within the industry. This is not merely about regulatory compliance; it is about re-establishing a culture of fairness, collaboration, and mutual respect on our worksites.
“For the members of the CCF, this development is a significant relief. It signals an opportunity to engage with the Fair Work Commission and other authorities without the looming fear of retribution or recrimination. It will ensure that Members can work again with confidence with union employees’ representatives in a collaborative manner to get on with building community enabling infrastructure and reconfiguring the settings to build the country out of the challenges we face today.”
Background
The CFMEU Construction and General Division is officially in administration in all states and territories in Australia, with 270 union officials removed from office immediately (none from WA) following the introduction of new laws last week. Click here to read the list of union officials removed from office (see Annexure B), as well as a list of those who maintain their position (see Annexure C).
Mark Irving KC has been appointed as the administrator, with broad powers.
Key aspects in the new laws include:
While in administration, the CFMEU can continue to:
CCF Advocacy
CCF has been advocating at a national level, working very closely with both Senator the Hon Murray Watt, Minister for Employment and Workplace Relations and Murray Furlong, General Manager Fair Work Commission, as well as the Federal Opposition to get the new laws passed. CCF has compiled a list of asks for further legislative change. To see the one-page summary, click here.
Here in WA, we have again urged the State Government to reconsider the WA Best Practice Industry Conditions (WA BPIC) policy, which will impose mandatory CFMEU rates and conditions on its major projects.
A recent CCF WA media release pointed out that the risks of implementing the CFMEU-friendly WA Best Practice Industry Conditions policy on Western Australian infrastructure projects far exceeded any potential rewards. When asked to respond, a State Government spokesperson took issue with our description of WA BPIC as a CFMEU enterprise agreement. Really? It could hardly be more obvious. Entire sections of WA BPIC are copied from CFMEU templates: the pay rates, the allowances, the CFMEU-specific benefits and conditions. BPIC even compels non-unionised businesses to check with the CFMEU before making decisions.
What has driven the State Government to take this extraordinary step of compelling private sector employers to replace their existing, lawful, Fair Work-endorsed enterprise agreements with a CFMEU agreement?
Well, according to the same government spokesperson, it’s to “provide decent working conditions” and ensure workers “are paid what they deserve”.
I'm sure it will come as a surprise to many that our industry's rates and conditions are so bad that this unprecedented government intervention is deemed necessary, and that Fair Work-endorsed EAs and the National Employment Standards are no longer decent.
The WA BPIC conditions are undoubtedly generous. There's the CFMEU-standard 36-hour week and fortnightly RDO. Employers must pay $5436.60 per year per employee to a CFMEU-nominated redundancy fund and for various insurances (as per the CFMEU template).
If this is how the State Government is going to define decent, then it risks setting an unreasonably high bar, which few employers in WA (including the State Government itself) can attain.
What about the claim that BPIC workers will be paid what they deserve? If that’s the case, then they will be some of the most extraordinarily deserving construction workers in WA. The only workers anywhere near as deserving are – you guessed it – those covered by other CFMEU enterprise agreements.
WA BPIC workers will receive about $10 per hour more than the typical over-award rates for civil construction workers on smaller government projects and residential subdivisions. They’ll also get up to $10 per hour more than Main Roads' own in-house construction workers, and experienced, diploma-qualified enrolled nurses in public hospitals.
That's a lot of less-deserving people.
Our State Government is a highly valued client, and civil contractors love creating important infrastructure. If the government wants all workers on major projects to receive CFMEU conditions and be paid CFMEU rates, we will of course oblige, and all of us as taxpayers will wear the cost (and with 5% annual pay rises locked in, that cost will keep growing).
But let’s not portray this policy as a means to achieve fairness and decency, and let’s call WA BPIC what it is.
Western Australia’s peak civil construction industry body has urged the State Government to shelve its WA Best Practice Industry Conditions (BPIC) policy rather than risk handing the CFMEU huge power on major infrastructure projects.
The Civil Contractors Federation WA (CCF WA) says the CFMEU WA branch may not be crooked and corrupt but it certainly can't be trusted with the excessive power being handed to it by WA BPIC.
CCF WA CEO Andy Graham said WA BPIC stipulated mandatory pay and conditions on infrastructure projects, and did not even go close to meeting the "genuine agreement" test for major project agreements laid down by Federal Workplace Relations Minister Tony Burke this week.
"If BPIC didn't pass the sniff test last week, it's well and truly on the nose this week," Mr Graham said. "Minister Burke's investigators need to take a close look at this arrangement.
“Contractors and subcontractors on the Tonkin Highway Extension project have no choice but to comply with WA BPIC – they were not even consulted, let alone reached genuine agreement.
“Clearly though, the CFMEU was consulted, because the WA BPIC document is effectively a CFMEU pattern employment agreement.
"Mandating BPIC on the Tonkin Highway Extension is the first step to all government projects being 100 per cent union sites, no ticket no start, like we see on high rise building sites in the city, where as long as you join the union you're safe.
"We don't want that toxic culture in our sector. Companies and employees are of course always welcome to work with the union, but it should be their choice, not a government policy.
“CCF WA believes no government should be forcing law-abiding businesses, with existing Fair Work-endorsed enterprise agreements in place, to tear those agreements up and comply with a set of union-dictated terms and rates.
Mr Graham said the WA BPIC agreement gave the CFMEU excessive rights to interfere in business operations and included onerous consultation requirements which far exceeded those in the Fair Work Act.
“One BPIC clause requires businesses to give the CFMEU detailed advice at least 28 days before engaging any company to do any work, whether or not this will have any effect at all on employees. It’s not clear why the union needs all that information, nor what it will do with the information.
"That's just one example -- the CFMEU's fingerprints are all over BPIC."
Mr Graham said CCF WA freely acknowledged the CFMEU WA was better behaved than other states. "But they're still the CFMEU -- they still have a long history of using threats and intimidation to get their way. Their slogan is ‘whatever it takes’, and everyone in the industry knows that's a motto that some of their organisers still proudly live by.
“That's why there has to be a balance. But WA BPIC tips the scales way too far.
“We don’t even have to imagine what our project sites might look like when BPIC gives the CFMEU free rein to do 'whatever it takes' in WA. Just look over east at what’s happening in Queensland and Victoria under similar so-called best practice union-friendly policies.
“Construction costs have shot up and productivity has declined – why would we risk that in WA?
“Three years of BPIC in Queensland has emboldened the CFMEU to launch increasingly bitter and personal attacks on businesses and employees – why would we risk the psychosocial health of Western Australians?
“Weighing this all up, how can we even contemplate risking all of the destructive effects of BPIC – the added cost of infrastructure and housing, the inevitable industrial unrest and project delays, the stress on local businesses and workforces – just to satisfy a union’s expansion plans?”
Federal Government advisory body Jobs and Skills Australia has copped some criticism this week for its draft Core Skills Occupation List (CSOL), which will define the occupations eligible for the new Core Skills Pathway – a key component of Federal skilled migration reforms.
Jobs and Skills Australia published three lists: skilled occupations it’s confident should be on the CSOL; occupations it’s sure shouldn’t be; and occupations it was unsure about.
Looking at these three lists, some have wondered if Jobs and Skills Australia is aware there’s a housing crisis fuelled by critical construction skills shortages. The Urban Taskforce Australia asked why yoga instructors and dog handlers are on the ‘confident on’ list while bricklayers, glaziers and plasterers are not. Master Builders CEO Denita Wawn said : “We cannot build homes with wellness instructors, we need tradies, and they must be on the definite list for skilled migration.”
We agree, but there’s a more fundamental problem, and that is the total absence of trade-level civil construction skills from any of the CSOL consultation lists.
Before the bricklayers and plasterers can do their stuff, the civil construction trades have to do theirs first. Without housing-enabling civil infrastructure, new home builds cannot commence. But you won’t find any trade-level civil construction occupations on the CSOL.
In drafting the CSOL, Jobs and Skills Australia has only considered occupations classed at Skill Levels 1,2 and 3 in the Australian and New Zealand Standard Classification of Occupations (ANZSCO). Civil construction occupations such as excavator operator and pipelayer are classed at ANZSCO Skill Level 4, so they weren’t even considered for the CSOL.
Frustratingly for our sector, this omission ignores the government's clear intent in its Migration Strategy, which states that the Core Skills Pathway may include “trades workers, machinery operators and drivers, and labourers”, i.e. Skill Level 4 and 5 occupations – subject to those occupations being on the CSOL and workers being paid above the TSMIT.
The writers of the Migration Strategy clearly signalled that they want to see common-sense skilled migration settings that break away from ANZSCO’s outdated and inflexible definition of ‘skilled’. Jobs and Skills Australia seems to have missed this signal.
When the Migration Strategy was published (December 2023), CCF welcomed the proposed Core Skills Pathway. We noted that civil construction 'tradies' had been locked out of our country’s skilled migration pathways for too long due to ANZSCO’s outdated classifications.
Now we find that Jobs and Skills Australia has decided to stick with the ANZSCO ‘rules’ despite the Migration Strategy clearly inviting a more flexible, common-sense approach.
As the voice of our industry, CCF has pointed all of this out in our submission to Jobs and Skills Australia CSOL consultation. But the terms of reference for the consultation made it clear that they are only considering ANZSCO Skill Level 1-3 occupations, so we're not hopeful.
Hopefully though this is just a roadblock and the Federal Immigration Minister, who has the final say, will rule in favour of common sense and include skilled civil construction occupations -- and bricklayers and plasterers too!
- Andy Graham, CCF WA CEO
The Federal Government's planned overhaul of Commonwealth Environmental Laws, including the establishment of a National Environmental Protection Agency (EPA), continues to face delays. It’s been reported this decision was influenced by pressure from the WA Government, which expressed concerned about the potential for local backlash.
Current regulatory frameworks cause significant delays and productivity losses for contractors and principals awaiting project approvals. The proposed National EPA aims to streamline approval processes, including for renewable energy infrastructure projects, facilitating the path to net zero emissions by 2050. These reforms are poised to significantly impact the civil industry; we need clearer information regarding stages of implementation and how new regulations will affect their operations. CCF will continue to work toward achieving this clarity, remaining actively engaged in briefings and providing updates as more information becomes available. Members can expect further details on the consultation process, legislative review plan, and any roadmap to 2050.
Below are summaries of the five key areas comprising the reforms:
Establishment of a National Environment Protection Agency A national EPA would issue permits, oversee project assessments, and enforce federal environmental regulations. It would ensure compliance with National Environmental Standards and possess enforcement powers akin to the Federal Police commissioner. The EPA could issue stop-work orders and audit businesses for environmental law compliance. Serious breaches could result in fines up to $780 million and seven-year jail terms. However, clarity is needed regarding Ministerial call-in powers. The current drafting allows Ministerial intervention without providing crucial information to project proponents. A mandatory advisory panel, comprising industry, scientists, environmentalists, traditional owners, and community representatives, should be established. Additionally, the Minister must consider various factors before making decisions.
Environment Information Australia (EIA)
EIA will provide independent environmental data to inform national decision-making, with information also being publicly available. New laws will appoint an independent head to oversee data accessibility, State of the Environment reporting, environmental-economic accounts, and trend tracking.
Regional plans
Regional Plans will use a traffic light system to classify areas by environmental value. Green Zones, with little to no environmental value, will generally permit development. Yellow Zones, with some environmental value, will require additional measures, with some projects possibly blocked. Red Zones, with high environmental value, will impose significant conditions, preventing most projects.
Restoration actions and contributions (formerly offsets) reform
These reforms aim to transform environmental offset systems for environmental gains and project efficiency. Proponents must fully compensate for significant impacts via restoration activities or contributions. The National Environmental Standard for Restoration Actions and Contributions will provide clarity on compensation rules.
Nature Positive Environmental Standards
New laws will include powers for the Minister to make National Environmental Standards and set out how standards apply to key decisions under the new laws. These new laws aim to preserve the natural environment while also reducing impediments to development by clarifying requirements and streamlining accreditation.
By Andy Graham
CCF WA welcomes continued strong state government investment in civil infrastructure that's vital for ongoing economic growth. But there are challenges ahead, including an alarming decline in forecast investment and a damaging industrial relations policy.
In a sign of the times, the 2024/25 WA State Budget forecasts road and rail capital investment to decline year-on-year, as the METRONET peak passes and the government looks to prioritise investment in water and energy.
Reduced rail investment was inevitable, but the small number of major road projects in the project pipeline is a concern. Main Roads' capital investment in new civil works is currently forecast at just $450 million in 2027/28, compared to more than $2.3 billion this FY. We hope the state and federal governments can work together to fund some of the exciting and transformational metropolitan and regional road projects currently in the planning phase.
Across the board in fact, government infrastructure investment is forecast to dip alarmingly in the final years of the current Budget cycle, 2026/27 and 2027/28. We are hopeful some future announcements will boost those 'out years' but the government has to get better at providing a smoother and more certain pipeline of work. It’s gone backwards in that respect – we are used to seeing spending dropping off by 20-30% over the 4-year budget forecasts; this year it’s more than 60%. This makes it impossible for government contractors to invest in capability with confidence. And of course it's tough for non-government contractors to deal with the peaks and troughs of government spending.
The Budget has some welcome measures to address housing shortages but we believe there must be opportunities for more targeted initiatives to address the roadblocks constraining housing lot supply, which remains stagnant and well under what the state needs to put a serious dent in the housing crisis in coming years.
The elephant in the room for housing lot affordability, and for infrastructure affordability in general, is the state government’s WA Best Practice Industry Conditions (BPIC) policy.
BPIC is little more than a free kick to the unions with taxpayers and home buyers footing the bill – as any Queenslander will tell you.
The fact that BPIC is initially being trialled on one major project - Tonkin Highway Extension and Thomas Road Upgrade - is little comfort to the contractors who’ll be affected, directly or indirectly. And if the trial is declared a success – and we have no idea how that judgement will be made – and BPIC is rolled out across more government infrastructure projects, then construction costs will soar, leading to fewer civil projects and fewer jobs.
Construction costs have jumped 30-40% over the past few years; the state is getting a lot less bang for its infrastructure buck already. Now is not the time for the government to add fuel to the fire with a policy that will supercharge labour rates and throttle productivity.
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