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Australia’s peak national body for the civil infrastructure sector says the Federal Government’s Fair Work Legislation Amendment (Secure Jobs, Better Pay) Bill 2022 has the potential to cripple the infrastructure sector by causing widespread industrial disputation, threatening the livelihoods of thousands of civil construction companies and the workers they employ.
Civil Contractors Federation National CEO Chris Melham said: “Within 48 hours after confirming its commitment to retain the $120 billion, 10 year rolling infrastructure investment program, the Federal Government has thrown a grenade into the infrastructure sector by confirming its intention to dissolve the Australian Building and Construction Commission (ABCC) and create industry-wide uncertainty by introducing industry-wide pattern deals.
“The most disappointing aspect has been the lack of open and transparent consultation by the Government in the formulation and delivery of this Bill to the Parliament, which has caused significant industry uncertainty. It is also unreasonable for the Government to use the Jobs and Skill Summit as the platform for justifying the introduction of this Bill. This Bill in its entirety was not presented to the Summit, but rather a high level of indication regarding jobs, skills and productivity.
“CCF supports this Bill being referred to a Senate Inquiry to allow stakeholders an opportunity to consider its content in more detail and put forward their respective positions; a process that should allow sufficient time for widespread consultation between industry groups and their members.
“The infrastructure sector showed great resilience and commitment to the Australian economy by working non-stop through the COVID-19 pandemic, keeping hundreds of thousands of workers in a job, and this Bill in its current form now threatens the livelihoods of those workers and their employers. It will potentially become an industrial relations epidemic.
“One of the key problems facing the construction industry in the past three decades has been low productivity compared to other sectors including mining and transport; not because the workplace bargaining system is broke, but because of poor industry financial outcomes brought about by inefficient and costly procurement processes, unfair contractual conditions, risk allocation, price escalation and supply chain issues.
“Removing the ability of individual employers and their employees to negotiate working conditions reflective of the worksite will almost certainly worsen productivity because the construction industry does not operate in a one-size-fits-all environment."
Mr Melham said that contrary to claims that the ABCC was politicised, discredited and unnecessary, the following facts demonstrated the ABCC had been apolitical and extremely effective as an industry watchdog overseeing the behaviour of both unions and employers on construction sites, and contributing effectively to industry viability:
“Retention of the ABCC is paramount until the Government can demonstrate the alternative regulatory framework will deliver an even more robust compliance and enforcement regime," Mr Melham said.
“The CCF looks forward to working with the Government and the cross bench to ensure the avoidance of any unintended consequences that may cripple Australia’s infrastructure sector and jeopardise the livelihoods of thousands of civil construction companies and their workers."
For further information: Duncan Sheppard, CCF Senior Policy and Communications Advisor, 0438 330 039
1Australian Building and Construction Commission Security of Payment 3-year Activity Report, between 1 July 2019 and 30 June 2022.
Statement by Andy Graham, Civil Contractors Federation WA Chief Executive Officer
Today’s release of the National Skills Commission’s 2022 Skills Priority List confirms widespread shortages in civil construction trades and again highlights the Federal Government’s failure to adequately respond through its training and migration policies.
The 2022 Skills Priority List shows that skilled operators of excavators, loaders, paving machines and other civil construction equipment are in shortage, both in Western Australia and nationally.
Yet in the face of these shortages, the Federal Government persists with training and migration policies that discriminate against civil construction trade level workers, on the basis of an archaic skills classification system.
According to the Federal Government’s outdated ANZSCO system, the workers who build our infrastructure – roads, railways, bridges and pipelines – are semi-skilled, while the workers who our homes are skilled.
The ANZSCO classifications reflect a bygone era, when civil construction work was largely regarded as labouring, and formal training pathways were still being established.
We’ve come a long way since then, and nowadays skilled civil construction trades such as plant operations, road construction and pipelaying are recognised as construction apprenticeships in most states, on an equal footing with the building trades.
The Federal Government’s reliance on ANZSCO when making skills policy decisions has two damaging effects.
First, it means civil construction apprentices receive no support from the Federal Government’s Australian Apprenticeships Incentives System (AAIS). Signwriters, locksmiths, gardeners, painters, bricklayers, plasterers and tilers can receive full AAIS funding, but civil construction apprentices cannot.
Secondly, it means our industry is denied access to temporary and permanent skilled migration pathways available to other sectors.
So we can’t bring in skilled tradespeople from overseas, and we can’t get funding support to train locals.
The bar for civil construction excellence in Western Australia has been raised again, with seventeen impressive infrastructure projects contesting the 2022 Civil Contractors Federation WA Earth Awards and seven category winners named.
CCF WA CEO Andy Graham said the Earth Award judges commented on the high calibre of entries this year and said they consider 2022 presented a significant milestone in civil construction excellence.
Transport infrastructure projects featured strongly on the night – five of the seven category winners were Main Roads WA projects, underscoring the importance of the State Government’s massive transport infrastructure program to the civil construction sector.
Water Corporation projects also featured strongly, with four finalists and one category winner. A special Judges Award was awarded to another Water Corporation project.
The seven category winners and Judges Award winners are listed below with information about the projects. More information, and high resolution images of the award presentations, are available on request.
Earth Awards for Excellence in Civil Construction Winners –
Project Value more than $150 million: Armadale Access Alliance (comprising Laing O’Rourke, BG&E and Main Roads Western Australia) for its Armadale Road to North Lake Road Bridge project.
This project comprised two grade separated roundabouts at Tapper Road and Solomon Road to create a duck and dive alignment, a new bridge over Kwinana Freeway, new freeway on- and off-ramps and collector-distributor roads, upgrades to Armadale Road, and improved access and parking for Cockburn Station. Major enabling works were required for the threespan bridge across Kwinana Freeway. The western abutment works required an anchored sheet pile wall to retain an existing high-pressure gas main, and the eastern abutment works required a diversion of a major telecommunications service. The bridge beam lifts and superstructure works were also particularly challenging.
Project Value $75 million to $150 million: Downer for its Denny Avenue Level Crossing Removal project.
Downer to completed a multidisciplinary project involving the removal of the Denny Avenue Level Crossing, construction of a rail bridge and road underpass, upgrade of the surrounding road networks and revitalisation works in the Kelmscott town centre. After award, the client requested a program change, bringing forward the closure of the dangerous level crossing.
Through innovative products and working methods, Downer achieved this key milestone four months ahead of schedule, even with the challenges of complex service removals and COVID-related logistical issues. Downer’s collaborative approach not only delivered a high-quality project; the company also successfully trialled new products and working methods – increasing safety, sustainability and efficiency; and leaving a lasting legacy for the local community, the Public Transport Authority and the wider civil construction industry.
Project Value $30 million to $75 million: Georgiou Group and Main Roads Western Australia for the Karel Avenue Upgrade project.
The project involved the widening of Karel Avenue, over Roe Highway and the freight railway, to create a dual carriageway. From a design and construction perspective, the most challenging aspect of the project was widening the existing grade separation over rail, to accommodate the Thornlie to Cockburn passenger lines next to the existing freight lines. Another significant consideration was the interface with live services, including a high-pressure gas main and a fuel line servicing Perth Airport. Through clear communication with the client and the key stakeholders, coupled with regular planning workshops and programming meetings, Georgiou delivered the programmed works without any impact on these assets.
Project Value $10 million to $30 million: Georgiou Group for its Kwinana Freeway Pedestrian and Cycle Path project.
This path not only allows an uninterrupted journey between Mandurah and Perth CBD, it also improves safety by eliminating conflict between traffic and path users. Georgiou constructed 700 metres of new shared path, including a new 45-metre underpass, and upgraded a further 455 metres of existing path. The project site was approximately 800 metres long and 20 metres wide, with the busy Kwinana Freeway to the east and residential properties to the west. Georgiou overcame numerous challenges, such as protection of an existing water sewer main, live services and the tight project boundary. The company’s innovative approach not only influenced the final design, but also the construction methodology, saving the client time and money.
Project Value $5 million to $10 million: Rob Carr and Water Corporation for the Gnangara Branch Sewer Section 2 project.
As part of significant upgrades to the sewer network in Perth’s northern suburbs, Rob Carr was engaged by Water Corporation to construct a new branch sewer along Lancaster Road in Wangara. The location and proximity of the existing infrastructure, of in-ground services and of structures along the alignment itself created a number of site access and constructability challenges. Rob Carr overcame a number of site access and constructability challenges created by existing infrastructure, in-ground services and structures along the alignment. Though the conditions were very challenging, the project was completed successfully and well ahead of the contract schedule.
Project Value $2 million to $5 million: Enviro Infrastructure for its Hector Street Footbridge Refurbishment project.
Main Roads engaged Enviro Infrastructure as head contractor to undertake remedial works to this footbridge, which spans the Mitchell Freeway and Joondalup rail line in Osborne Park. Enviro’s scope of works included protective coating maintenance, weld inspection testing and repairs, and deck plank end repairs. To deliver these essential remediation works, Enviro and its key subcontractors worked almost 7 months onsite, all works being nightshift, with no impact on road and rail users or assets.
Project Value up to $2 million: Foundation Engineering for its Multi-Unit Development, 147 Hastings St Scarborough project.
Foundation Engineering provided an alternate shoring system using steel piles and chemical grout injection for the development of a series of dwellings on the Scarborough beach front. Due to the sloping nature of the site, some piles were required to support the existing structures either side of the property during the excavation. However, there were other sections of the site that required the piles be exposed up to several metres. The installation rig required was able to handle the tricky site conditions resulting from having such a steep, sandy surface. In comparison, a traditional CFA pile installation rig would have struggled to install concrete piles along such a steep run.
2022 WA Judges’ Award: SRG Global for its 20ML Karratha Water Tank and Associated Works.
The Judges Award is a discretionary award for a project which scores highly and which the judges consider to be worthy of special recognition. SRG demonstrated commendable planning, design and execution of the works to build a staged concrete structure with an expected lifespan of 100 years in a region where extreme weather events are prevalent.
The seven 2022 WA Earth Award category winners will represent the state at the CCF National Earth Awards on November 11 in Canberra.
WA’s peak civil infrastructure body is calling for urgent changes to the Federal Government’s outdated skills classification system, to allow civil apprentices and their employers access to new training incentives available to other sectors with skills shortages.
The Civil Contractors Federation WA (CCF WA), in conjunction with CCF’s National office, wants civil occupations to be formally classified as skilled trades on the Australian and New Zealand Standard Classification of Occupations (ANZSCO). This is a pre-requisite for funding under the Federal Government’s new Australian Apprenticeships Incentives System (AAIS).
CCF National CEO Chris Melham will push the need for urgent reform today (August 19) at an infrastructure jobs and skills roundtable hosted by Federal Infrastructure Minister Catherine King ahead of the Jobs and Skills Summit next month.
Mr Melham said reforming ANZSCO to give civil construction apprenticeships fair access to training incentives would be an important step in addressing major skill gaps in the civil infrastructure sector.
“As part of CCF’s 2022 Infrastructure Market Capacity Survey, respondents were asked to rank a number of threats to the delivery of the infrastructure investment pipeline, ranging from the availability of raw materials, through to the availability of skilled and unskilled labour,” Mr Melham said. “In each state and territory, the highest ranked issue was the lack of availability of local skilled tradespeople and professionals to undertake construction projects.”
Mr Melham said access to AAIS subsidies would address this by directly incentivising civil construction employers to take on more apprentices.
CCF WA CEO Andy Graham said he had written to State Premier Mark McGowan and Training Minister Sue Ellery seeking their support ahead of the Federal Jobs and Skills Summit, which they will both be attending next month.
“Thankfully our state government, through the Construction Training Fund and other incentives, recognises that civil construction apprentices in skilled trades such as pipelaying, directional drilling and plant operations deserve to receive the same funding as their counterparts in bricklaying, tiling and plastering,” Mr Graham said.
“But it’s a different story with Federal incentives, where the building trades get AAIS funding and the civil construction trades miss out thanks to the antiquated ANZSCO skill levels.
“The Federal Government is a major funding source for the massive program of transport infrastructure projects that is transforming Western Australia, so they should be well aware of the critical need to incentivise training and skills development in civil construction.”
Mr Graham said other sectors had also been highly critical of the ANZSCO system’s failure to reflect the modern skilled workforce. A recent Federal Parliament Standing Committee Inquiry received dozens of submissions from companies and industry groups calling for ANZSCO to be abandoned as a basis for determining occupational skill levels. The inquiry recommended that ANZSCO should be either scrapped or completely overhauled.
“For the civil construction sector, ANZSCO reform can’t some soon enough,” Mr Graham said. “And in the meantime, the Federal Government should take a common sense approach and include civil construction trades in the AAIS.”
A new report from WA’s peak civil construction body highlights the wide disparity in transparency by local governments when awarding works tenders, and recommends changes to bring WA into line with other states.
The Civil Contractors Federation WA report, Transparency in Western Australian local government tender evaluation, analysed the tender assessments, as published in council minutes and supporting documentation, of 29 of Western Australia’s largest metropolitan and regional councils.
The report awarded a Tendering Transparency Score out of 10 to each council, with points awarded for:
One council, the City of Joondalup, scored a perfect ‘10’ by providing all of the information above, with a detailed summary describing the tender evaluation process and how decisions were made.
The Bayswater, Cockburn, Gosnells, Kalamunda, Kalgoorlie-Boulder, Perth, Rockingham, Swan, Wanneroo, and Dardanup councils also achieved a ‘pass’ mark of 5 or more.
Many councils surveyed in the report relied on the commercial-in-confidence provisions of the WA Local Government Act 1995 as justification for suppressing information.
CCF WA CEO Andy Graham said the WA legislation was out of step with local government laws in other states.
“The law in other states puts the onus on councils to explain why they have decided not to publish tender assessments,” Mr Graham said.
“Generally, other states only allow suppression where councils can show issues with confidential financial information or trade secrets.
“The South Australian legislation expressly bars councils from preventing disclosure of any reasons adopted by the council as to why a successful tenderer has been selected.
“We’ve recommended to the State Government that it replace the current blanket commercial-in-confidence provision with a modernised provision more in line with community expectations and with the practice in other states.
“The law in other states recognises that the very ‘local’ nature of local government procurement can make it more susceptible to probity issues and conflicts of interest, and therefore accountability and transparency are perhaps even more important than in other levels of government.
“Transparency of decision-making is of course a good thing in itself, but there are broader benefits too.
“We know that contractors highly value the feedback provided by published evaluations. They really appreciate getting a clear picture of where their submission was strong and where it wasn’t, and can use that feedback to improve their submission next time.
“For councils, this means that not only will they get a higher standard of submissions, but they will get more submissions, because there’s no doubt that contractors prefer to work for councils who are open and transparent.
“It’s even more important right now, with so much demand for construction work, that councils position themselves as a client of choice.”
Transparency in Western Australian local government tender evaluation is available for download online here.
WA’s peak civil construction industry body says targeted relief for building contractors in the 2022/23 State Budget is no comfort for civil contractors on Government projects who are also battling rampant escalation of cost.
The Civil Contractors Federation Western Australia (CCF WA) says urgent action is needed to provide relief from onerous Government construction contracts that are forcing contractors to bear the brunt of recent massive cost increases and supply chain disruptions.
CCF WA CEO Andy Graham said the new $30 million scheme to assist building contractors working for the departments of Finance and Communities would not help hundreds of local businesses battling soaring costs on Government civil infrastructure projects.
“There is some cost relief for the civil construction sector in the Budget, mainly on a few high-profile, federally funded road and rail projects,” Mr Graham said.
“The budgeted cost of some major projects has increased by around 30 per cent, yet the allocations for all other transport projects has remained the same.
“CCF WA welcomes the acknowledgement of huge and unforeseen escalation on those major projects, but we are concerned that contractors on dozens of other Government projects are facing the same realities yet being forced to fight tooth and nail to have their fair and reasonable claims accepted.
“The standard watertight contracts used on many Government projects are designed to protect the budgeted project cost by any means possible. The contractor is expected to wear the cost of unexpected events or unavoidable delays that are out of their control.
“In normal times, we deal with that and take the occasional loss on the chin. But these are unprecedented times, and civil contractors can’t keep absorbing huge extra costs and mounting losses.
“It’s time to put aside the onerous contract and the legalistic mindset, work together and take an ‘open book’ approach that fairly reimburses all Government contractors for unavoidable extra costs.
“It’s certainly encouraging to see a $350 million provision for general construction cost escalation in the Budget – we now look forward to working with the Government to ensure this provision translates into timely action.”
How to attract, retain and promote women working in the civil construction industry was the issue of the day at this morning’s Women in Civil annual breakfast held by the Civil Contractors Federation Western Australia (CCF WA).
With just 20 per cent of women making up the civil construction industry nationally and Western Australia having the biggest gender pay gap in the country, gender diversity leaders recognised while there was positive work being done, there was still more to do.
CCF WA CEO Andy Graham said the business case was clear – more diversity has a positive effect on productivity and financial performance.
“Since 2011, CCF WA’s Women in Civil initiative has supported and celebrated diversity in the Western Australian civil construction industry,” he said.
“We launched our inaugural Women in Civil Mentoring Program in 2021 which is dedicated to providing support, guidance and professional growth opportunities to women working in civil construction.
“We recognise part of this challenge is making sure civil construction careers are a genuinely viable long-term career option. It’s important we have these discussions and keep moving in the right direction to provide career opportunities for both men – and women.”
Special guest speakers included Minister for Women’s Interests Simone McGurk, Champions of Change Coalition Program Director Tania Cecconi, and Clough Vice President of Strategy and Development in the APAC region Carl Titchmarsh.
Minister McGurk has led the State Government’s Plan for Gender Equality, while Ms Cecconi has been instrumental in shifting the conversation from fixing women to fixing workplaces and Mr Titchmarsh spoke off the back of Clough’s second Employer of Choice for Gender Equality Citation by the Workplace Gender Equality Agency.
Themes raised included workplace flexibility for both women and men, gender agnostic paid parental leave, government funded female leadership programs on major infrastructure projects, and women’s safety and security.
CCF WA’s Women in Civil Breakfast was supported by Kais Hire, CJD Equipment and Sitech.
Western Australia’s civil construction industry has been blindsided by a new State Government regulation that from today will force thousands of excavator operators to obtain a crane operator’s licence before they can perform straightforward lifting tasks on sites.
With the introduction of the new Work Health and Safety Regulations, WA is the only state in Australia that requires operators of earthmoving machinery to possess a crane operator’s licence when lifting and shifting loads.
Civil Contractors Federation Western Australia (CCF WA) CEO Andy Graham said the industry had largely been caught unaware by the new regulation.
“The new WHS regulations, comprising 800-plus pages, were only gazetted a few weeks ago and this sweeping change to licensing requirements is tucked away as a footnote to a schedule,” Mr Graham said.
“We aren’t aware of any forthcoming advice from WorkSafe about this change, and industry doesn’t appear to have been consulted.
“Underlining the haste and lack of consideration with regards to implementing this change, the newly mandated crane operator training is not even designed to train operators of earthmoving equipment.
“The crane operator licensing training packages are designed around the harmonised national WHS system, which recognises that a crane is nothing like an excavator, and vice versa. Sending thousands of excavator operators off for a crane licence will certainly be a windfall for training providers but it will do nothing for safety.
“If the Government was serious about improving safety, it would ensure the appropriate training in excavator operations – which covers safe lifting techniques – was being delivered to a more consistent standard. This is the sort of unintended consequence of departing from the national framework, which could have been avoided with consultation.”
Mr Graham said the new regulation had been introduced with no consultation, no advice, and no transition period. He said it was out of step with safety and training frameworks in every other state in Australia and would not improve safety.
CCF WA has urged the Government to defer implementation of this new regulation pending further consultation.
“Ultimately, this regulation is unnecessary and should be removed,” Mr Graham said.
The Civil Contractors Federation Western Australia (CCF WA) has welcomed today’s official announcement of the new Civil Construction Pilot Program by the Minister for Education and Training, the Hon. Sue Ellery.
CCF WA CEO Andy Graham said civil construction qualifications were now formally recognised as a trade, putting it on equal footing with traditional building trades, with civil construction apprentices receiving a trade certificate on completion of their Certificate III qualification.
“Together with our Civil Construction Industry Training Committee, it has taken considerable work and engagement to get to this point and is a huge step forward for the industry,” he said.
“With government investment in infrastructure at record levels and a strong pipeline of both public and private sector work, trade careers in civil construction now have the recognition they deserve. This is hugely important in attracting new people into the workforce, especially at a time of skills shortages in our industry.
“Not only is this an opportunity to increase both the number and quality of new workers entering the industry, but also to increase employer satisfaction with graduates.”
Mr Graham thanked the Construction Training Fund (CTF) for playing a vital role in helping to advance the proposal with the CTF now investing in wage gap funding to cover any wage difference between trainee and apprentice award rates, ensuring no business or apprentice will be financially worse off by transitioning to an apprenticeship.
“This will ensure the take-up of civil construction apprenticeships is strong and will help the pilot program’s success,” he said.
The decision by WBHO South Africa to put its Australian infrastructure business into administration highlights an ongoing profitability crisis right across the building and construction industry, including Western Australia’s civil infrastructure sector.
Reporting of WBHO Australia’s financial problems has understandably focused on the group’s high-profile Melbourne-based building division, Probuild. Closer to home, the group’s civil construction business, WBHO Infrastructure, is based here in Perth and a key player in the local infrastructure sector. WBHO Infrastructure’s excellence in infrastructure delivery has been recognised by multiple CCF WA Earth Awards, most recently last year for the Wanneroo Rd – Ocean Reef Road Interchange project. WBHO Infrastructure is currently part of the joint venture widening Mitchell Freeway from Hodges Ave to Hepburn Ave.
In a time of unprecedented infrastructure construction activity in Western Australia, it’s troubling that such a strong and capable civil contractor is thinking of closing its doors.
Our thoughts are with the WBHO-I team, who have to deal with this uncertainty on top of all the other pressures they’ve faced over the past two years during the pandemic.
This is a challenging time for all businesses in civil construction. We’re facing the disruptions and compliance burden of COVID-19 while in the midst of a boom in activity, with strong activity across the board in government works, in subdivision development and in resources construction.
While we have been fortunate in WA to have avoided project shutdowns, the pace of progress on projects has been significantly compromised by factors including border closures restricting the movement of people and companies; delays with the supply of materials and equipment; and rampant escalation in the costs of labour and materials.
All these factors have translated into totally unavoidable extra costs for contractors. With profit margins in the government infrastructure sector already wafer-thin, contractors can easily lose money on a project – and increasingly, that’s what is happening.
We are at risk of a profitless infrastructure boom, which will leave the local industry in worse shape than before.
In this environment, it’s more important than ever that when a contractor lodges a reasonable variation or delay claim, that claim is assessed fairly and quickly. Unfortunately, as WBHO alluded to in a statement this week, that’s often not the case, and contractors are all too often left carrying those unavoidable extra costs.
CCF WA believes it’s time for an urgent rethink of the way variation and delay claims are addressed. We need to progress from the current ‘just say no’ culture to a more balanced approach that recognises the importance of spending public funds wisely, while also ensuring that head contractors are not unfairly punished through delayed payment or non-payment where their claims are reasonable and justified.
The state government has been proactive in increasing protections for subcontractors through stronger security of payment laws, and rightly so. Now there needs to be a focus on speeding up payment to head contractors, many of whom must wait months or years to get their reasonable claims settled.
Despite the challenges, all civil contractors and suppliers appreciate the privilege of building the vital infrastructure that underpins economic development and improves our quality of life.
That’s why we do what we do, but increasingly more of our businesses are becoming unsustainable and more of our people are deciding they want a less demanding and stressful career.
The Government recognises this too, and in collaboration with industry is developing a long-term strategy for a sustainable civil contracting sector – a place where people want to work, where capable businesses are valued, and where there are pathways to growth.
The Office of Major Transport Infrastructure Development (OMTID) is leading the way by facilitating this strategy, and we look forward to working with them on its development and implementation.
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