CCF WA NEWS

Western Australia’s civil construction industry peak body has congratulated the McGowan Government on being returned and called on it to prioritise procurement reforms that will reduce red tape, help create more long-term local jobs, and deliver greater value-for-money for taxpayers.

Civil Contractors Federation WA CEO Andy Graham said the Government’s first term was notable for the introduction of important legislation that could provide a framework for comprehensive and much-needed reforms in procurement and security of payments.

“A hallmark of this Government has been its consultative approach, and we have appreciated the opportunity to contribute to the development of new legislation,” Mr Graham said.

“One important but possibly under-appreciated piece of legislation is the new Procurement Act, which has the potential to drive some revolutionary changes to the way infrastructure projects are delivered, right across Government.

“Full credit to this Government for setting the wheels in motion. Now it will require strong will and commitment at all levels to break down the procurement silos that have been built up over many decades.

“Most businesses that contribute to infrastructure projects in WA, whether as a head contractor, subcontractor or supplier, do so for multiple Government agencies and corporations. Every day, they must deal with a multiplicity of contracts, documentation and processes, from beginning to end of project procurement and delivery.

“All of this chews up time and resources and distracts them from their real job of delivering high-quality infrastructure safely and efficiently.

“Ultimately, this web of procurement red tape translates into much higher costs, both for the contractors and for Government itself, and increases the risks of mistakes being made.”

Mr Graham said the scope of the Act should be extended wherever possible to the major Government corporations that are major procurers of infrastructure works, including Development WA, Western Power, Water Corporation and the port authorities.

“If these corporations continue to operate as procurement silos, with unique contracts and processes, all developing their own versions of ‘best practice’, then these reforms will be half done,” he said.

“As the Government’s Procurement Reform website notes, ‘inconsistencies in procurement processes are challenging and frustrating for agencies and industry’. That frustration extends to dealing with the corporations too, and so we encourage them to get on board.”

Mr Graham said the other important procurement reform was the new Security of Payments legislation currently before Parliament.

“CCF WA welcomed the introduction of the Building and Construction Industry (Security of Payment) Bill 2020 into Parliament last year,” he said.

“Security of payment is an ongoing issue in the construction industry and when enacted, this legislation will help ensure businesses get paid on time, avoiding company failures and saving jobs.

“Procurement reform will play a part in this too, as unnecessary complexity and duplication in Government procurement also contributes to business failures.”

Western Australia’s civil construction industry peak body says an expected boost to subdivision construction activity from the extended Federal Government Home Builder incentive is easing fears of a ‘hard landing’ for Western Australian land development contractors and suppliers in early 2021.

Civil Contractors Federation WA CEO Andy Graham said the HomeBuilder extension – providing a reduced $15,000 grant for contracts signed between 1 January and 31 March 2021 – would give land developers the confidence to commission more stages to meet demand.

“We’re already hearing that developers are looking to take advantage of the extended incentive – which when combined with the State Government First Home Owners Grant and stamp duty concessions, can mean a saving of close to $40,000 for first home buyers,” Mr Graham said.

“With both the State and Federal home building incentives previously requiring a contract signed by December 31 this year, there were concerns that the current high activity in subdivision construction would be followed by an abrupt downturn early next year.

“For the subdivision sector, which has been extraordinarily busy for the last six months, the Federal Government’s extended incentive will help ease the transition to more normal workflows.”

More contractors are sought for work placements

It was great to see Minister for Transport Hon Rita Saffioti MLA visiting North Metropolitan TAFE this morning to meet students taking part in the Infrastructure Ready training program - including some who have just completed their work placement (the final step of the program). Minister Saffioti and the Government are justly proud of this program and CCF WA has been pleased to be involved in its development from the outset, providing a vital industry perspective.

Program participants undertake a 3-week skill set (comprising 6 introductory-level units of competency, as recommended by CCF's Training Committee) followed by a 4-day work placement.

The feedback from contractors who have hosted work placements has been very positive. The robust screening process for Infrastructure Ready candidates, developed by industry in collaboration with Government, has proven effective, with candidates demonstrating they are 'work ready' and eager for an opportunity. Already we are hearing success stories, with some participants finding jobs directly with their work placement hosts.

I visited a number of our Contractor Members hosting work placements this week, including Enviro Infrastructure who are doing some works for PTA in East Perth. Pictured below are Enviro Infrastructure HSEQ Officer Joe Nash, Infrastructure Ready program participants Allan Holper and Paul Holmes, and Enviro Infrastructure Site Supervisor Cam Matthews.

Enviro Infrastructure's General Manager David Schlueter said: "We applaud the efforts of DTWD, OMTID and CCFWA in accelerating the prioritisation of upskilling initiatives such as Infrastructure Ready. Enviro are embracing the opportunity to redeploy workers from sectors affected by the COVID-19 pandemic and retrain them in the challenging, diverse and highly rewarding WA civil industry.”

How you can help

The Government aims to put 250 people through the Infrastructure Ready program before Christmas, and potentially hundreds more next year, and has asked CCF to assist with finding companies to host work placements, whether this year or early next year. So if your company is willing to host a work placement, or interested in finding out what's involved, please contact the program facilitator at irp@dtwd.wa.gov.au. It's not expected that all hosts will be able to offer immediate employment to candidates, and we understand the Government is currently finalising an online portal where graduates can be 'matched' to potential employers.

Some background

CCF WA has engaged extensively with the Office of Major Transport Infrastructure Development (OMTID), the Department of Training and Workforce Development, and other Government stakeholders on the design of the Infrastructure Ready program. From the outset, OMTID has made it clear that it expects our industry to find jobs for hundreds of Infrastructure Ready graduates on its projects, and it will be setting contractual targets to ensure that happens.

OMTID has however also acknowledged that placing a high volume of entry-level workers on complex projects will affect productivity on those projects, and that contractors will need to be fairly recompensed for the reduced productivity of new workers, and the higher level of supervision they require. Those discussions are still ongoing.

While there will no doubt be issues to work through, the Infrastructure Ready program does offer an opportunity for our industry to work with government to help address skills shortages that are already hitting our sector and will get more severe in the coming months and years. Furthermore, this program, and the level of publicity it is getting thanks to Minister Saffioti and others, is also raising community awareness of civil construction and highlighting that our industry can offer fulfilling and rewarding trade-level and professional careers. Increasingly, civil construction is gaining broader recognition as an industry in its own right and not just an offshoot of the building or mining industries. I hope we can look back in a couple of years and recognise this program as a game-changer.

(And speaking of game-changers, our proposal to have Civil Construction traineeships re-classified as Apprenticeships is still being considered and we remain hopeful of an announcement soon. This would be another important step in raising the status of civil construction as a 'real' trade-level career.)

- Andy Graham, CCF WA CEO

CCF Online Masterclass: Advocacy in Action

Join us for this critical online event and receive insight to CCF’s latest advocacy work and achievements in representing the interests of our Members to Government, addressing key issues most pertinent to our industry within the COVID-19 environment.

Hosted by John Kilgour, CEO CCF Victoria, this webinar welcomes Special Guest Presenter Chris Melham, CEO of Civil Contractors Federation National, who will provide an overview of the activities and achievements of the Civil Contractors Federation National at a federal level over the past 12 months. Chris will focus on CCF National’s advocacy efforts to respond to the economic impacts of COVID-19, and to highlight the industry’s priorities in the lead-up to the 2020-2021 Budget.

Chris will also discuss:

• The role CCF National plays to work on behalf of members to lobby for additional infrastructure investments from the Federal Government and to increase funding for skills.
• The direct engagement CCF National had with senior ministers during the year, including the Deputy Prime Minister, the Hon Michael McCormack. Surveys undertaken during 2020 to demonstrate our sector’s strong capacity to take on more infrastructure projects and employ more workers to stimulate the Australian economy.
• The formal submissions CCF National has provided to the Federal Government on a range of matters consistent with CCF National’s policy pillars, including infrastructure investment, skills, industrial relations, procurement and foreign investment.
• CCF’s engagement with a range of government and non-government bodies to advocate for policies that support the civil construction sector.

Chris will also speak about CCF National’s future activities, including the development of an Infrastructure Report that will underpin ongoing engagement with governments at both the federal and state levels.

This is your opportunity to hear from and directly engage with the CEO of CCF National.

Special Guest Presenter:

CHRIS MELHAM - CCF NATIONAL, CHIEF EXECUTIVE OFFICER

Chris Melham has accumulated over 30 years experience as an industry advocate within the not-for-profit industry association sector. He has represented a number of industries at state, federal and international levels and currently represents Australia’s civil construction industry as Chief Executive Officer of Civil Contractors Federation National (CCF).

In his capacity as the CCF National CEO, Chris also sits on a number of high-level Federal Government Advisory Committees representing the interests of CCF including:

• Australian Government Security of Payments Working Group
• Australian Taxation Office Fuel Schemes Advisory Group
• National Heavy Vehicle Regulator Industry Reference Forum
• Standards Australia Council
• Australian Construction Industry Redundancy Trust Fund

 

EVENT DETAILS:

Date: Thursday, 26 November 2020

Time: 6:00 am AWST (9:00 am AEST)

Venue: Online Webinar

Cost: CCF MEMBERS: FREE

NON-MEMBERS: $99 (inc. GST) per attendee

RSVP: Tuesday, 24th November 2020

TO REGISTER

Email your full name and email address (for each attendee), company name to events@ccfwa.com.au

The Western Australian civil construction industry gathered on Friday night for the industry’s ‘night of nights’, the Civil Contractors Federation WA’s 2020 Earth Awards Gala Dinner, an annual celebration of excellence in infrastructure project delivery.

CCF WA CEO Andy Graham said that after considerable uncertainty earlier in the year about whether the event could go ahead, it was a great pleasure to welcome nearly 400 people to the Gala Dinner.

“The Earth Awards have been a highlight on our industry’s calendar since 1993 and we’re happy that we didn’t have to break that run this year,” Mr Graham said.

“We were honoured that Transport and Planning Minister, the Hon Rita Saffioti MLA, joined us on the night.

“And it was especially appropriate as Minister Saffioti was closely involved in planning, procurement and delivery of two category winners – the Great Northern Highway Upgrade - Maggie Creek to Wyndham and the Subiaco Oval Demolition and Renewal – and two other category winners were State Government projects.”

The Earth Award for Excellence in Civil Construction – Project Value $30 million - $75 million went to WBHO Infrastructure and Main Roads WA for the Great Northern Highway Upgrade - Maggie Creek to Wyndham. The project involved the investigation, design and construction of 27 km of highway, including widening, reconstruction, and overlay; replacement and extension of culverts; construction of floodways and off-road drainage; reconstruction and realignment of the steep section known as Maggie’s Jump-Up; and construction of a passing lane at Maggie’s Jump-Up. The design and construction of the project required exceptional engineering and construction expertise. Both Main Roads and WBHO-I recognised that upon completion, regardless of its performance against traditional KPIs such as quality, safety, and schedule, this project would ultimately be measured against the success of its Aboriginal engagement outcomes.

The Earth Award for projects valued between $10 million - $30 million went to RJV Civil Infrastructure for the Subiaco Oval Demolition and Renewal project for Development WA. The demolition of Subiaco Oval was the largest such project ever undertaken in an urban setting in the State’s history. It was also one of the most high-risk, requiring significant asbestos removal, innovation solutions for a technically challenging location near residential areas, and sensitive treatment of a range of important heritage elements. The close constraints of nearby housing and busy thoroughfares required an innovative demolition approach. The solution was to demolish the stadium infrastructure from the inside out. All up, about 97% of salvaged materials were recycled.

The $5 million - $10 million Earth Award was won by Rob Carr for the  Quindalup Infill Sewerage Project, part of Water Corporation’s Infill Sewerage Program. Rob Carr’s project team worked closely with Water Corporation and the lead designers to provide advice on design solutions and constructability, which enhanced project outcomes through reduced community impacts and client cost savings. Significant time and resources were invested in minimising impacts of the works on the environment and the conservation of significant or endangered fauna that inhabited the area. The success of Rob Carr’s efforts was reflected in the overwhelmingly positive feedback from residents to Water Corporation regarding the courtesy of the workers and quality of restoration.

The $2 million - $5 million category winner was MMM (WA) for the Hill60 Bank Remediation. Urgent major remediation and stabilisation works were required to the Swan River escarpment behind the Hill60 Apartment Buildings in Rivervale. A section of dual-purpose path next to the apartments had been heavily undermined. MMM had to ensure that the works had minimal impact to the Swan River and its spiritual and environmental values. Due to the extremely limited laydown area – just 120 square metres – MMM had to ensure materials hauled into the stockpile were relocated and placed immediately along the embankment. Scheduling of deliveries was imperative and played a crucial role in the success of the project.

The Earth Award for projects valued up to $2 million was won by Ellett Contracting - Cranbrook Grain Receival Site Expansion Project Subcontract Works. This project was a major expansion to an existing CBH grain receival site in Cranbrook, 320km south of Perth. The project was run over a tight time frame as it needed to be completed outside of harvest season to prevent delays to CBH’s operations. Delivering the project over the winter months created many challenges, including planning and preparing concrete pours around rain. The most technically complex aspect of the project was counteracting the high water table and associated drainage issues. This affected the earthworks and the installation of the elevator pits.

On the recommendation of the judges, a special Highly Commended award was presented to Altona Plumbing and Civil - HMAS Stirling Redevelopment Stage 3A – HY1. Altona’s scope of works comprised a major upgrade of the water, fire, and wastewater infrastructure on Garden Island, delivered in 16 stages and involving the installation of more than 65km of HDPE pipe, two complete fire systems, and the replacement and/or refurbishment of 14 wastewater pumping stations. The success of the project was pivotal upon delicate planning, effective risk aversion strategies, precise execution, and the careful management of stakeholders, in order to overcome a series of unique and intricate construction constraints and latent conditions.

Pictured: Michael Brunton (centre) from RJV accepts the Earth Award for Excellence in Civil Construction – Project Value $10 - 30 Million from CCF WA President David Della Bona (left) and Hon Rita Saffioti MLA (right). For more photos of the night and high-res images email ccfwa@ccfwa.com.au.

Successful Recycling of C&D Materials

With David Beyer, Principal of ActiveSustainability.

Your business could be saving money, and helping to ensure a sustainable future, by using quality recycled Construction & Demolition (C&D) materials.

With over 1.5 million tonnes of C&D materials processed annually in WA, there is a large supply of recycled construction materials available.

This timely and informative webinar is presented by David Beyer, co-author of the recently released WA Construction Resources - Recovered Construction and Demolition Materials Resource Guide.

The Guide features information on what, where and how much construction waste is available for reuse in WA projects.

Mr Beyer will summarise the key points from the Guide. You’ll learn where to source recycled C&D materials, and how to put them to best use.

WHEN:

TUESDAY, DECEMBER 15th 2020

11:00am - 12:00pm

REGISTER:

(Registrations now closed)

Cbus Super, Australia’s leading Industry Super Fund for the building and construction industry, has a proud history of investing back into the industry and creating jobs for its members through Cbus Property^#.

Now, more than ever, Cbus’ commitment to investing in Australian projects and developments will be vital as Australia continues on its road to economic recovery.

Since March 2020, Cbus has committed over $950 million to Australian businesses through equity raising, debt finance and project financing. An extra allocation to the Cbus debt portfolio means Cbus now has a further $850 million in additional capital to invest in companies and project finance.

The fund has committed over $240 million in general corporate debt to Australian businesses and a further commitment of $260 million into debt funding for construction projects across Sydney and Melbourne including:

• funding of $160 million for the development of over 390 new apartments and associated retail and commercial facilities over two locations in South Melbourne and the inner North East of Melbourne;
• $100 million in a NSW based construction facility for a residential project close to the Sydney CBD.

In addition, Cbus has also injected over $450 million into quality Australian companies that were raising capital to continue operating and employing into the recovery.

More projects and investments ahead

Over the next 12 months, Cbus will continue to actively look for opportunities that create strong returns and jobs for its members, playing an important role in Australia’s economic recovery and supporting our members’ financial wellbeing during their working lives and into retirement.

Learn more about Cbus’ role in the road to recovery here.

This update was brought to you by Cbus, the industry super fund for building, construction and allied industries. 

^# Cbus Property Pty Ltd is a wholly-owned subsidiary of United Super Pty Ltd and has responsibility for the development and management of Cbus’ direct property investments.

This information is about Cbus and doesn’t take into account your specific needs. You should look at your own financial position, objectives and requirements before making any financial decisions. Read the relevant Cbus Product Disclosure Statement to decide if Cbus is right for you. Call 1300 361 784 or visit cbussuper.com.au for a copy.

Cbus' Trustee: United Super Pty Ltd ABN 46 006 261 623 ASFL 233792 Cbus ABN 75 493 363 262

Australia’s peak voice for the civil infrastructure sector, the Civil Contractors Federation, has welcomed the Federal Government’s infrastructure investment package announced in the 2020-2021 Federal Budget and has called on governments to work with industry to roll out the funds in a fast and effective manner.

“CCF welcomes the $7.5 billion worth of new infrastructure investment, taking the total Federal Government commitment to $14 billion since the outbreak of COVID-19. This is in addition to the existing $100 billion rolling 10-year infrastructure investment pipeline,” CCF National Chief Executive Officer Chris Melham said.

“I would like to thank the Deputy Prime Minister, the Hon Michael McCormack MP and the Minister for Population Cities and Urban Infrastructure, the Hon Alan Tudge MP, for their constructive dialogue with CCF over many months leading up to the Budget and acknowledge their recognition of the important role the civil infrastructure sector can play in contributing to Australia’s economic recovery as evidenced in tonight’s budget.

“This investment reflects the significant productive capacity of the civil infrastructure sector, and its readiness to generate additional jobs as outlined in the CCF’s 2020-2021 Federal Government pre-budget submission. CCF has long argued for significant and sustained civil infrastructure investment to support Australia’s economic recovery efforts and the budget announcements reflect CCF’s policy."

Mr Melham also welcomed the Federal Governments ‘use it or lose it’ message to the States and Territories but he said it needs to go further by requiring ‘shovel ready’ infrastructure funds to be spent in a transparent manner across urban, regional, rural, and remote Australia – and not to be used for ‘pork barreling’ in the lead up to respective State elections.

“In addition, Federal, State and Territory government procurement policy must be more balanced by encouraging and maximizing greater participation of Tier 2 and Tier 3 head contractors, and I look forward to the Federal Government adopting this policy and its application to the release of infrastructure funds to State and Territory procurement agencies,” he said.

“While the Government has made it quite clear that it is targeting ‘shovel-ready’ projects across all States and Territories, creating opportunities for parties to work more collaboratively is the key to contracts being awarded earlier and to identify and manage risks."

Civil Contractors Federation National - 2020-2021 Budget Brief 

1. Economic Highlights

• Budget deficit is $213.7 billion in 2020-2021
• Economy forecast to fall by 3.75 per cent in 2020
• Unemployment is forecast to peak at 8 per cent in the December 2020 quarter
• Establishment of a new JobMaker hiring credit - payable for up to twelve months and immediately available to employers who hire those on JobSeeker aged 16-35
• Expanded asset write off incentives and new loss carry back measures

 

2. Infrastructure Investment

The Federal Government has announced:

• an additional $7.5 billion for road and rail infrastructure projects in the 2020-2021 Budget (see Attachment A for a break down of new and additional funding commitments). The $7.5 billion investment includes new projects in each jurisdiction as well as additional funds for existing projects, and in most cases, requires matching funds from the respective State or Territory Government.
• an additional $2 billion investment in road safety measures as part of a new Road Safety Program.
• an additional $1 billion under the Local Roads and Community Infrastructure Program in addition to $500 million announced in June 2020.
• $2 billion in new funding to build water infrastructure including dams, weirs and pipelines.
• The Commonwealth’s investment in infrastructure since the outbreak of COVID 19 is approximately $14 billion.

3. Apprentices/trainees

The Federal Government has announced a $1.2 billion package in the 2020-2021 Budget to support the hiring of apprentices. The package is in addition to the previously announced $2.8 billion Supporting Apprentices and Trainees wage subsidy to help employers to retain their apprentices and trainees. Under the package employers will be eligible for 50 per cent of the wages for a new or recommencing apprentice or trainee for the period up to 30 September 2021, up to $7,000 per quarter. The subsidy will be available to employers of any size or industry, Australia-wide who engage an Australian apprentice or trainee from 5 October 2020 until the 100,000 cap is reached.

Western Australia’s civil construction industry peak body welcomes today’s launch of the State Government’s Infrastructure Ready training program, which will offer a pathway into a civil construction career for hundreds of Western Australians.

Civil Contractors Federation WA CEO Andy Graham said the four-week program would provide the first step to an exciting and rewarding career in civil construction. “There’s a very strong pipeline of road and rail infrastructure projects to be delivered over the next few years in WA,” Mr Graham said. “It’s an exciting challenge for our industry, and it’s also a great opportunity for Western Australians who might not have previously considered a career in civil construction.

“Everyone is aware of the traditional trade-level jobs in housing and high-rise construction, but there are lots of ‘tradies’ in civil construction too, with a wide variety of interesting and well-paid trade-level roles in areas such as plant operations, pipelaying, road and bridge construction, tunnelling, and utilities installation.”

Mr Graham said the industry and the TAFEs had worked together to devise a program that quickly and effectively delivers ‘basic training’ in civil construction, providing the foundation skills for working safely on infrastructure projects. The program will include a work placement that will provide hands-on experience on a major project.

“The work placement will also be the first step to helping participants connect with potential employers,” Mr Graham said. “After all, that’s what this initiative is all about – finding jobs for Western Australians in the thriving civil construction sector.”

Mr Graham said the State Government, through the Office of Major Transport Infrastructure Delivery (OMTID), would encourage head contractors and subcontractors on its projects to provide employment to successful graduates from the program. “OMTID is to be congratulated for its proactive approach in both driving the creation of this program, and incentivising the employment of people in entry-level roles on its projects,” he said. “These new workers will be the future ‘top guns’ our industry needs to ensure a sustainable, home-grown workforce for years to come.”

Western Australia’s civil construction industry peak body congratulates the State Government on implementing key recommendations in the Fiocco report through the introduction of the Building and Construction Industry (Security of Payment) Bill 2020 into State Parliament.

Civil Contractors Federation WA CEO Andy Graham said the industry welcomed the removal of the exemption for some types of resources sector construction work. “This will remove a grey area in the current legislation which has caused confusion,” Mr Graham said. “As a matter of principle, we believe there’s no justification for excluding any particular type of construction work from legislation that simply helps ensure contractors get paid for the work they have done."

Mr Graham said the revision to payment times, with a maximum 20 business days payment for head contractors and 25 business days for subcontractors, achieved a fair and realistic balance, while the complementary introduction of a payment schedule regime was a welcome step forward to ensuring greater certainty and security of payment.

“The payment schedule process is well understood by our industry and regarded as fair to all parties,” he said.

Mr Graham said the introduction of trusts for retentions was a reasonable reform that would protect retentions in event of company failure. “It makes sense for retentions to be held in trust as they are a portion of the payment that the contractor has already earned at the time of their retention,” he said. “Education will be key to the successful implementation of retention trusts and we look forward to working with Government on ensuring industry is well prepared."

The new legislation reduces the time available to make an application for adjudication, and also restricts the grounds for adjudication to matters included in the payment schedule. “These are both sensible reforms which will give claimants greater and earlier certainty, and will also encourage a shift back to a faster, cheaper and less complicated adjudication process,” Mr Graham said.