Some burning questions for the Australian Construction Industry

Some burning questions for the Australian 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.

  1. If formal Bills of Quantities are no longer being prepared for the majority of construction projects, who is measuring the quantities for tendering purposes and how are they being measured in terms of a reference standard method of measurement if any?
  2. Following on from question 1, What is the relevance and purpose of the Australian Standard Method of Measurement both in the current marketplace and the future marketplace?
  3. Another follow on from question 1, If all Main Contractors and subcontractors are measuring their own quantities for every project they tender for, would this not be a gross duplication of measurement resources in an Industry that has been short on resources for a very long time and an obvious drain on productivity. In addition, it raises the question of accuracy of quantities for comparative purposes by Main Contractors as well as the potential for the introduction of padding in the quantities to cover any potential errors in the measurement of quantities. This is of course all against the well advertised backdrop of rising (beyond CPI) construction costs in Australia.
  4. Could the high levels of insolvency (Main Contractors & Subcontractors) currently being experienced be related in some way to the trend away from formal Bills of Quantities for tendering purposes?

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.

Australian Constructors Association (ACA)

Australian Institute of Quantity Surveyors

Master Builders Australia

Australian Owned Contractors


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.

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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.

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Bob Wildermuth OAM

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.

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Matt Stevens MBA PhD FAIB

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

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