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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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CCF WA’s annual analysis of capital spending by the State Government’s key civil infrastructure delivery agencies and corporations (in road, rail, water, ports, energy and land development) shows a forecast investment of just over $10 billion in 2024/25, a 7% increase on this financial year and 45% more than 2022/23. Targeted measures include a $400 energy credit for 90,000 small business.
Of course, those increases are much smaller in real terms due to unprecedented cost escalation in recent years, but government civil infrastructure investment has certainly been high by historical standards in recent years.
Looking ahead, civil infrastructure investment is forecast to dip alarmingly in the final years of the Budget cycle, 2026/27 and 2027/28.
Agency summaries
Below is a quick summary of key takeaways for the infrastructure agencies and corporations. Next week we’ll publish an update of our Member-exclusive civil works pipeline to include all new announcements.
Main Roads’ asset investment program is $2.15 billion in 2024‑25, down from $2.56B this year and an even more significant fall in real terms. There’s only one new project announced – the $38M Congdon St Bridge replacement. Main Roads’ capital spend is forecast to fall to $650M by 2027/28 – this will probably grow by the time we get there but it’s a worrying figure. We know Main Roads has plenty of projects in planning, and there’s no doubt strong ongoing investment in our road network is desperately needed. Where are the projects in the pipeline?
The Public Transport Authority's Asset Investment Program for 2024/25 is $3.05 billion – down from $3.64 billion in the current FY. Most of that will go towards the METRONET projects: Byford Rail Extension and the Armadale Line Upgrade top the list with over $500 million each in 24/25. The PTA’s spending plummets in the forward estimates, down to just $258 million in 2027/28.
Western Power’s asset investment program in 2024/25 is $1.37 billion, reflecting strong investment in decarbonisation initiatives, distribution networks, transmission capacity, and grid improvements. Unlike the transport agencies planned investment remains strong in future years up to 2027/28, the final ‘outyear’ in this Budget. Horizon Power will invest $189 million in 2024/25, with fairly strong investment in future years though not as consistent as Western Power’s.
Water Corporation’s $1.7 billion capital investment in 2024/25 includes nearly $600 million on the Alkimos Seawater Desalination Plant (ASDP) and associated works. A strong regional asset program includes $45 million for a new water treatment plant in Onslow and $43 million towards upgrading the capacity of the Burrup Seawater Supply Scheme. Water Corporation’s AIP will peak at just over $2 billion next year as the ASDP ramps up, declining to just over $1 million in 2027/28.
The five port authorities (Fremantle, Mid-West, Kimberley, Pilbara and Southern) are planning another strong year, with a combined asset investment of more than $800 million in 2024/25 followed by nearly $850 million in 2025/26. The Pilbara Port Authority will account for more than half of that through ongoing investment at Port Hedland and Dampier, with the Mid West Port Authority spending $270 million over the next two financial years on the Geraldton Port Maximisation Project.
The state government-owned land developer DevelopmentWA will invest $681 million in 2024/25, with a focus on industrial and affordable residential projects including $35 million for the creation of development-ready land in the Kimberley, Karratha and Goldfields, plus ongoing works at Ocean Reef Marina.
Complementing the State’s civil infrastructure spend is investments in building new and upgraded schools ($608 million) and hospitals ($864 million).
Budget measures for businesses
Not much targeted relief for businesses in this Budget. The State Government has committed to reducing green tape and streamlining approval processes for major projects, and 90,000 small business will receive a $400 energy credit.
CCF WA is proud to acknowledge the panel of judges for this year's Western Australian Civil Construction Industry & Training Awards:
We’re honoured to have such an esteemed group of judges to assess nominations across the twelve Industry Award categories and seven Training Awards.
The Western Australian Civil Construction Industry & Training Awards are our industry’s annual celebration of individual and corporate achievement.
Nominations close April 3, 2024 and the winners will be announced at a Gala Dinner on Friday, April 19, 2024.
It's the WA civil industry's biggest night out, with 500+ attendees expected again this year. Join us to celebrate the winners and finalists, network, and enjoy entertainment from Felix The Band.
Tickets are on sale now.
The Western Australian Civil Construction Industry & Training Awards are proudly supported by our Major Sponsor WesTrac Cat, supported by The Apprenticeship Community, Civil Train WA, CJD Equipment, Construction Training Fund, DevelopmentWA, Enviro Plant Hire, Halo Civil Engineering, Kais Hire, MiniQuip, NPE, Coffey Testing and Motivation Foundation.
(Published in the CCF WA Bulletin, 2024 Edition 4)
There’s a scene in the ABC TV show Utopia where the Nation Building Authority’s Tony Woodford visits a government project site to figure out why labour costs are double the original estimates.
“You pay peanuts, you get monkeys,” an employee representative tells him. “Peanuts? That guy’s going to be on $120,000 a year,” Tony replies, gesturing towards a traffic controller. He goes on to point out that the traffic controller’s wage is $50,000 more than the government pays a high school teacher.
I was reminded of this scene while reading a recent AFR opinion piece by John Lloyd, the inaugural commissioner of the ABCC. Mr Lloyd compares the standard weekly wage of a traffic controller on the Melbourne Metropolitan Tunnel Project, $126,200 a year, with the starting salaries of nurses ($72,000) and teachers ($78,000) in Victoria, and notes: “A workplace relations system that produces such bizarre pay relativities is in strife”.
Recent developments here in WA suggest we may be heading in the same direction. In October, Main Roads WA made changes to its Traffic Management Company Registration Scheme, mandating a minimum ordinary hourly rate of $37.24 per hour for all traffic controllers on state roads – whether they’re working on a Main Roads project, or for any other client.
Traffic controllers must also receive all relevant loadings and entitlements in the Building and Construction General On-site Award 2020. An entry-level traffic controller’s base 38-hour week wage will now be $73,586 per annum, or $78,672 per annum with fares and travel allowance. Working a 50-hour week, they’ll be paid $116,851 per annum.
While the new government-mandated wage for traffic controllers is not at the absurd levels seen on eastern states major projects, it’s nevertheless way out of step with the typical wages for semi-skilled, entry-level Western Australian workers in construction and other sectors.
As our article on page 8 explains, Main Roads has acted in response to concerns about some isolated pay inconsistencies in the traffic management industry.
In our view, overriding the Fair Work system to impose a rate on the whole industry that’s 38% higher than the award is a massive over-reaction. The article explains why, and the effects this will have.
The seemingly random decision to overpay traffic controllers started to make a bit more sense in mid-November with the release of the Expression of Interest document for the Alliance Contract to design and construct Tonkin Highway Extension and Thomas Road Upgrade (Package 1 of 2). Under the heading ‘Industrial Relations’ the EOI notes: “Main Roads intends on mandating best practice industrial relations principles (BPIR) into the Project Alliance Agreement.”
At the core of BPIR is a government-sanctioned pattern agreement. In Queensland, it’s already in force and known as BPIC (best practice industry conditions). A typical BPIC agreement includes:
Queensland Government agencies are careful to point out that BPIC isn’t mandatory, but contractors fully understand that if they don’t play ball, they won’t win the work.
As a guidance note from Brisbane law firm Gadens explains, BPIC is integral to the tender process, and is then embedded in the contract: “(BPIC) is a mandatory evaluation criterion, with all contractors commonly required to demonstrate: how they will provide terms and conditions of employment, including specific pay rates, for their employees who will perform work on the project, which are at least equivalent to the BPICs for the project; and the best endeavours process they will use to engage subcontractors or sub-subcontractors who provide terms and conditions of employment, including specific pay rates, for their personnel who will perform work on the project, which are at least equivalent to the BPICs.
“The commitments made by successful tenderers … will be included in the terms and conditions of relevant contracts and subcontracts on a cascading basis.”
Main Roads isn’t sure yet how the BPIR requirement will be worded in WA, although it’s been suggested there will be no room for negotiation – it will be expected that everyone on the site is paid the BPIR rates.
WA’s first iteration of BPIR will include rates on a par with the current METRONET head contractor enterprise agreements, around 35-40% over the award. Looking at the current rates in Victoria and Queensland, it’s likely that award disparity will keep climbing until we reach 70-80%.
It’s reasonable to wonder why a government would insist on extremely high pay rates that will add to the cost of not only their own projects, but also the cost of land development and other private sector works.
Only a few weeks ago, Deputy Premier Hon Rita Saffioti MLA rightly noted that infrastructure projects in WA had not suffered the type of cost blowouts seen on the Eastern States.
Surely, one of the reasons we have avoided massive blowouts is that wages on our major projects have not exploded, as they have in some other states. Yet here we are, lighting the fuse.
According to Main Roads, BPIR is needed to attract and retain more experienced civil construction workers. The problem with that argument is the wages currently available on major transport projects are already high by industry standards and already attracting the best people from elsewhere. Ask any land development contractor how hard it is to keep good employees.
Of course, industry also wants a skilled, experienced and well-paid civil construction workforce. But we believe blunt instruments like BPIR/BPIC are not the best way to achieve it, and a better outcome can be achieved with industry consultation.
Andy Graham CCF WA CEO
Australia’s peak civil construction industry body welcomes the Federal Government’s new Migration Strategy, which includes reforms that could greatly improve the civil construction sector’s ability to employ much-needed skilled plant operators and other skilled construction workers from overseas.
Under the new Strategy, civil construction plant operator and other blue-collar roles could be eligible through a new Core Skills Pathway, subject to meeting skills shortage and wage threshold requirements.
Currently, trade-level civil construction roles do not qualify for standard skilled migration pathways (such as subclass 482) as they are either mis-categorised or not included in the Australian and New Zealand Standard Classification of Occupations (ANZSCO).
Civil Contractors Federation (CCF) National President Mick Boyle said these welcome reforms acknowledge the importance of highly skilled workers in the civil construction sector, which has long been disadvantaged by the current system.
“We’ve been saying for years that ANZSCO needs urgent reform because highly skilled workers have been locked out of our country’s skilled migration policy settings by outdated and inflexible occupation lists.” Mr Boyle said.
“Now it looks like the new Core Skills Pathway system will have the flexibility to determine our migration priorities according to what’s best for the country – using an evidence-based approach, rather than being constrained by redundant red tape.
“We are excited by this development and look forward to working with the Federal Government and with Jobs and Skills Australia on developing and implementing this new system as soon as possible.
“We also urge the Federal Government to take a similar commonsense approach to reforming its training incentives system. Civil construction apprenticeships are currently excluded from the Australian Apprenticeships Incentive System, due to its reliance on the same outdated ANZSCO framework.”
Leading registered training organisation Civil Train has achieved a significant breakthrough for Western Australia’s new civil construction apprenticeships with the signing of a new agreement with the City of Stirling.
Under the agreement, Civil Train is delivering training to Certificate III in Civil Construction and Certificate IV in Civil Construction - Supervision level for employees of the northern metropolitan local government area, Perth’s largest in population numbers.
Stirling has taken up the scheme first introduced nearly two years ago to extend the formal recognition of civil construction qualifications as a trade.
Above: Trainee Mark Wainwright operates an eductor truck in the City of Stirling.
A spokesperson said the agreement fits the City of Stirling’s commitment to the continued upskilling of its civil maintenance and construction staff.
“The training allows our employees to further develop their skills and overall helps to improves the services we deliver,” the spokesperson said. “This can also feed down to provide benefits for the industry in WA.”
One of the benefits of the agreement would be on safety. “Training often makes employees consider the work they are doing, with safety becoming front of mind. For longer-term employees, training has the bonus of refocussing attention.
“Employees working in the civil maintenance and construction areas deal with high-risk situations so training – tool box or prestart – can help with a safety focus.”
The agreement should also further expand the potential employment pool for the council, which already has a strong reputation for recruiting from a wide variety of backgrounds covering all ages from school leavers to people who have retired and come back to work.
Karyn Grant, the Operations Manager for Civil Train, said the agreement would deliver the advantages of the 36-month apprenticeship that puts civil construction on an equal footing with traditional building trades.
The training will be delivered via on-the-job assessment of operations that utilise specific tools and equipment as well as sessions at Civil Train’s Jandakot premises covering general small plant and equipment operation, hand and power tools as well as management and procedural activities.
Existing workforce members will also be able to take advantage of credit transfers for their demonstrated skills and prior learning in areas such as traffic management and plant operating.
Above: City of Stirling apprentices Jack Ayre and Stevan Trajkovski.
Ms Grant said the extension of training as a goodwill measure to Stirling’s current workers, as well as new entrants, would be an incentive for them to enhance their work skills and standards. The mature age people on the council include many from non-English speaking backgrounds.
Financial support for the program by the Construction Training Fund, which covers employers and employees for any wage difference in the transition between traineeships and apprenticeships, is a further impetus.
Stirling has 18 maintenance crew and four construction crew taking the Certificate III in Civil Construction plus four supervisors taking the Certificate IV in Civil Construction - Supervision.
The council expects the training initiative will set the City of Stirling apart from many other local governments. “It means that the city can present itself as a local government employer of choice for WA’s civil maintenance and construction industry,” the spokesperson said.
At the same time, it hopes the initiative will be taken up by other local government bodies.
“If the city is able to encourage more local governments to upskill their employees, then that can only be a good thing. It is certainly a program that the city would encourage other local governments to take up.”
From Edition 4, 2023 of The CCF WA Bulletin. See Publications for more.
Australia’s peak civil construction industry body Civil Contractors Federation Australia (CCF) is pleased to announce the winners of the 2023 CCF National Earth Awards. This year’s finalists and winners were recognised at the awards ceremony held on 10th November in Canberra. Congratulations to the 2023 CCF National Earth Awards winners:
PROJECT VALUE UP TO $2M
BridgePro/ Latrobe Council | Warrawee Suspension Bridge | Tasmania
Latrobe Council sent a Request for Tender for a contractor to undertake the design and construction of a new bridge. This bridge was to replace the existing trail bridge connecting the Latrobe to Railton section of the Wild Mersey Mountain bike park. The scope of the works was to deliver a new ‘high-level’ bridge that would be used for recreational use as well as part of the green-rated mountain bike trail in the Warrawee Reserve, whilst meeting all required environmental considerations from the Parks and Wildlife Service.
As the successful contractor, BridgePro designed and constructed the largest pedestrian suspension bridge in the southern hemisphere. Further environmental challenges arose throughout the project, including construction scheduled during the endangered Wedgetail Eagle nesting and breeding season. However, the project was successfully delivered on budget with a lasting impact on their business, staff and the local community.
PROJECT VALUE BETWEEN $2M AND $5M
Civilcraft | E.S. Marks Athletics Field Safety Upgrade | New South Wales
Civilcraft was engaged by Greater Sydney Parklands to finalise the design, and construct the safety upgrade to the historic E.S. Marks Athletics Field. Once the premier athletics facility in Sydney, the ageing venue was experiencing structural failings of the southern grandstand. It needed a new lease of life, and improved amenities.
The project involved the partial demolition of the grandstand and entry buildings to make way for a new 33-space carpark, on-site bus parking, architecturally designed ticket booth, and new ingress and egress routes. Construction amongst protected heritage trees required strict environmental controls, monitoring and design changes. The project was delivered to a high standard, providing an outstanding facility to benefit the community.
PROJECT VALUE BETWEEN $5M AND $10M
Ertech | Onslow Boating Precinct Stage 1A | Western Australia
Ertech’s scope of works included the dredging of 45,000 cubic metres of material to allow the construction of a rock wall revetment; two new boat ramps; and a floating pontoon holding jetty. Also included were a new stormwater drainage line, gross pollutant traps, sealed carpark and driveway, solar-powered street lighting, and associated road furniture.
Ertech’s alternative methodology involved a temporary earth bund, complete with dewatering systems, to protect the work area from the influence of tides. This allowed work to be performed up to 8 metres below high tide level, with most dredging and rock revetment works completed in dry conditions. The entire boat ramp construction was performed in the dry, hugely improving safety and efficiency.
PROJECT VALUE BETWEEN $10M AND $30M
Melbourne Water, John Holland-KBR Joint Venture, Interflow and Welltech Total Water Management | Epsom Main Sewer Rehabilitation | Victoria
Melbourne Water, John Holland-KBR Joint Venture, Interflow and Welltech Total Water Management delivered the high-risk rehabilitation of 1.6km of the Epsom Main Sewer. The project’s technical complexities were responded to by the team with an innovative, collaborative, and sustainable mindset. The project installed a bypass sewer network that surcharged flow upstream to minimise stakeholder impacts and designed and installed a mechanical plug to create a safer work environment.
They also winched the liner through previously lined sections to overcome off-set maintenance holes and responded to the extended 24 hour/7 day works due to unforeseen infiltration with a caring and people focus. The project was delivered on budget and time and met stakeholder commitments. The team ensured the experience of project impacts by community, businesses and stakeholders were minimised while the asset was upgraded for another 50 years of service.
PROJECT VALUE BETWEEN $30M AND $75M
BMD Constructions | Mt Crosby East Bank Water Treatment Plant Upgrade | Queensland
BMD Constructions was engaged by Seqwater as the principal contractor to deliver upgrade works at the Mt Crosby Water Treatment Plant in the western suburbs of Brisbane. The treatment plant is a critical asset for the safe delivery and supply of over 50% of the water produced by the utility provider for South-East Queensland.
The upgrades were critical to ensure the integrity of the water supply and compliance requirements for the next 25 years. Essential works included upgrading the ageing infrastructure’s filtration system, replacing the existing controller programme and moving all controls onto a new system. Given the project was undertaken in a fully operational water treatment plant, maintaining operations was key to the success of the project. Through careful project planning and innovation, BMD were able to deliver the project four months ahead of program with no interruptions to supply.
PROJECT VALUE BETWEEN $75M AND $150M
Seymour Whyte Constructions | Pacific Motorway Upgrade Varsity Lakes to Burleigh (VL2B) | Queensland
Seymour Whyte - on behalf of the Queensland Department of Transport and Main Roads - delivered the Gold Coast's first Diverging Diamond Interchange on the M1 Pacific Motorway's Exit 87 to ease congestion and improve traffic flow. Within the overall six-lane motorway widening upgrade, the project also delivered a positive biodiversity legacy and optimised resources towards circular economy outcomes.
Seymour Whyte's environmental ambition and decarbonisation strategy allowed the team to deliver Queensland's first Infrastructure Sustainability rating on a construct-only contract. Seymour Whyte's approach to 'working in partnership' with all project stakeholders was key in successfully delivering this project, injecting 98% of project value into the local economy, with 3.9% going to First Nations businesses. Seymour Whyte is recognised for outstanding achievements in developing safe, innovative solutions with a sustainability focus through project planning with minimal impacts on residents and commuters.
PROJECT VALUE GREATER THAN $150M
Fulton Hogan Construction | Princes Highway Upgrade Albion Park Rail Bypass | New South Wales
Transport for NSW engaged Fulton Hogan to design and construct the Albion Park Rail bypass – the largest infrastructure project in the region’s history. The 9.8-kilometre Princes Motorway extension between Yallah and Oak Flats bypassed the town of Albion Park Rail. With improved travel times, it completes the 'missing link' for a high-quality road between Sydney and Bomaderry.
Despite significant rainfall, complex traffic staging over live roads and railway, working under a flight path, at-house noise mitigation treatments, soft soils, and a net import balance; the Project was delivered ahead of schedule and on budget. The known risks were one thing, but the unforeseen challenges of geotechnical movement, an existing water leak, deer, an unexploded ordnance and asbestos contamination. The team worked collaboratively to resolve all the issues and deliver several legacy environmental, safety, and community initiatives.
CONTACT DETAILS
CCF President Mick Boyle is available for comment. Please call 1300 223 753.
IMAGES
Images of each winner are available and must be credited to Hiebl Photography.
Australia’s peak civil construction industry body is pleased that the Federal Government has finally presented the findings of its infrastructure funding review.
Civil Contractors Federation President Mick Boyle said it is understandable that states and territories were upset at the cuts to their project pipelines. Clarity is required on the timing of funds set aside for delayed projects.
Mr Boyle said each state and territory would need support to deliver the infrastructure it needs, and the Federal Government may need to accept that its $120 million infrastructure commitment over 10 years is no longer sufficient to deliver a strong nationwide pipeline of road and rail upgrades.
“The reality is that construction costs have increased dramatically,” he said. “Labour, concrete, steel, asphalt, fuel and other inputs are all significantly more expensive than they were a few years ago. The Federal Government needs to adjust for that reality.
“States and Territories have limited ability to raise funds for the infrastructure they need to meet the growth of our nation. The Federal Government’s new 50/50 funding rule for regional projects will put an additional burden on the states, compromising the viability of nationally significant regional projects.
“CCF requests that the Federal Government reconsider the new 50/50 funding rule for critical regional projects which may need more Federal funding to be viable.
Mr Boyle said the Federal Government needs to be clear and transparent around the ‘national significance’ threshold of $500 million, to ensure it does not disadvantage the local and regional contractors and communities the government says it wants to support.
“That threshold could rule out far too many worthy projects, especially in the regions but also in metropolitan areas,” he said. “The guiding principles for the Federal Government should be that projects are cost-effective and have a strong business case. By all means, set a minimum amount to keep the pipeline manageable, but $500 million is too high.
“Research has shown that ‘mega projects’ are the most susceptible to cost blowouts, so the last thing the Federal Government should be doing in setting its funding threshold, so it creates more ‘mega projects’.
“CCF is prepared to work with government as they implement the Infrastructure Policy Statement to find workable productive procurement solutions for industry to ensure that the process creates project sizes for Australia’s local and regional contractors so they are able to deliver Australia’s infrastructure.”
Nicholas Proud has been appointed as National CEO of the Civil Contractors Federation (CCF) and will commence in the CCF Canberra Office early in the New Year.
Mr Proud brings to the role 20 years of diverse experience in policy, advocacy and finance within peak bodies and industry associations.
CCF National President Mick Boyle said: “There has never been a more important time in Australia for civil contractors and the Civil Contractors Federation. With that in mind we undertook an extensive recruitment process for this important role and Nicholas was the standout candidate. The National Board and I are really looking forward to working with Nicholas who has a wealth of experience and an impressive track record of strong leadership and effective advocacy in similar roles.”
Mr Proud said: “I have really enjoyed my last 8 years as CEO with PowerHousing Australia, effectively advocating for housing affordability and building great communities. This next dynamic role is focussed on national infrastructure delivery across the transport, water, and energy sectors all of which are so important for communities and affordable housing. I am looking forward to my National CEO role at the Civil Contractors Federation and building on all the great work my State and Territory colleagues are doing around the country to work with government and advocate for our members at a federal level here in Canberra.”
Mr Proud will commence his new role on Monday 29 January 2024.
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