State of the infrastructure market today

There is an interesting research report published on the Society of Construction Law website which came out in September 2020 which is well worth a read. The whole report can be read here.

Lawyers were polled as to their take on the Australian infrastructure market and what ails it. This graph caught my eye.

If lawyers are saying this then it must be blindingly obvious to all that contract risk allocation is the number one problem in the industry. The other matters follow such as project scoping, unrealistic expectations, cost pressures and procurement which in my opinion result in the rush to get a project out to tender when it hasn't been fully thought through. So what is the answer? Well the lawyers suggestions for how to achieve positive change were as follows

Seems obvious doesn't it! Part of the solution is "collaboration" which is a single word which covers many different approaches but Early Contractor Involvement (ECI) has to be the key as with ECI the contractor can provide input at the feasibility & design stage and resolve the project scoping, unrealistic expectations as well as providing solutions to the cost pressures. Then I believe the equitable risk allocation will fall into place.

However it is sad to say that the take up of ECI is not what it could and should be. Why is that? Well the same report had quotes from project managers, here is what they had to say.

?the industry has been plagued by an adversarial culture for over 35 years

?there are those in the public sector who think an adversarial attitude is the only way to protect the public purse

?the adversarial nature of the Australian construction industry contrasts with a less adversarial culture in other countries

?project managers are not head-kickers – they like to be collaborative

?the culture and behaviour in second-tier builders are generally better than in first tier builders

?too often, contracts are not collaborative in style.

So for the last point it is up to the contract drafters, those same lawyers to take a stand and start proposing collaborative/ECI contracts to their clients. Just my ten cents worth!