October 2021 - January 2022
CONSTRUCTION
Australian I construction industry cries out for reform Industry experts say Infrastructure reform is “desperately” needed to rollout Australia’s massive $110-billion infrastructure program, The Urban Developer reports
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nfrastructure Australia has released its 648page infrastructure plan for 2021, responding directly to the 180 infrastructure “challenges and opportunities” identified in its 2019 Australian Infrastructure Audit. The plan, which highlights nine focus areas to “support infrastructure”—following bushfires, drought, cyber-attacks and the Covid-19 pandemic—zeros in on delivering infrastructure for the lowest cost. Infrastructure Australia chief executive Romilly Madew says Australia’s approach to infrastructure, at a time of record investment, now needs to consider value for money and whether
or not projects deliver optimum public value. “The challenge of progressing the reforms outlined in the plan is a shared one—that is why we stand ready to partner with the commonwealth, states and territories, local government and industry to support the implementation of reform,” Madew says. The federal budget tipped an additional $10 billion into the government’s $100 billion, 10-year infrastructure program, in a bid to drum up job creation following a turbulent 2020. Only a few years ago, the federal government’s “headline” infrastructure promise was around the $50-billion mark. The pandemic has since increased pressure on supply chains, material costs and construction companies as more money is pumped into new projects across all sectors to stimulate the economy. “The ability to successfully deliver this ambitious infrastructure pipeline is constrained by current processes,” Madew says. “These include an over-emphasis on a project-to-project and contract-by-contract mentality, inappropriate apportionment of risk, and a sporadic uptake of best practice. “If these processes and practices continue, less infrastructure will be built for the same money, and the infrastructure will not be as functional in the long-term.” Slattery managing director Sarah Slatterytold The Urban Developer that the national property and construction advisory firm welcomed the strategy and and that it was strategic and necessary to “build confidence” in the market and provide much needed flow on effects.
