Some burning questions for the Australian Construction Industry
Bob Wildermuth OAM
FAIQS CQS ICECA FAIB - Certified Quantity Surveyor & Commercial Consultant to the construction industry
We are all living in some very interesting times. The following are open questions to the construction industry but in particular the Australian Contractor's Association, Master Builders Australia, Australian Owned Contractor's Association and the Australian Institute of Quantity Surveyors.
It is fair to say the Construction Industry is not in a good place at the moment and hasn't been for quite some time. I've written many articles and made submissions to Federal Government Inquiries about the root cause which has driven the industry to where it is today, so I'm not going to go into the details here today, but suffice to say the Australian Construction Industry was purring along BEFORE the Trade Practices Commission and the ACCC acted to ban minimum scales of professional fees which at the time produced quality well coordinated documentation (drawings, specifications and Bills of Quantities) for tendering and construction purposes.
Until the Federal Government recognizes the errors of its past decisions and legislation and adopts a back to the future approach, the Australian Construction Industry is destined to remain in a very bad place despite the best intentions and endeavors of every construction industry association and institute in Australia.
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Another question is whether contractors really want to keep buying more risk, with design, quantities, programming etc., or turn to delivering an excellent service, without the risk. Deloitte turned $US65billion in '23. Wouldn't be a contractor in Australia who wouldn't kill for a share of that.
Thanks for raising this again, Bob. Everything is moving very quickly, so it is hard to predict. As you know, the industry is grappling with improving performance, profitability and productivity, while clinging to 40 year old processes. But we know that improvement will only be achieved with end-to-end collaboration, and that means transparent, rules-based data. Everything including process automation, smart contracts, fair bidding and more will rely on it. Governments and clients will learn that they must understand the value of, pay for, own and control all the important data if they too want to take advantage of emerging technologies for whole-of-life facilities management. Interesting times.
FAIQS CQS ICECA FAIB - Certified Quantity Surveyor & Commercial Consultant to the construction industry
5 个月It’s been quite some time since this post was made and interestingly not one reply from any of the associations and institute that the questions are directed too.
Author / Senior Lecturer-Western Sydney University / Fellow AIB / Senior Lecturer-IATC
9 个月Bob Wildermuth OAM is correct in his general assertion, given the recent surge in Australian Building Construction PPI