PROJECT MANAGEMENT
HOW TO MANAGE OWNER EXPECTATIONS AND REMAIN
PROFITABLE
WHILE THE CURRENT MARKET DYNAMICS AND INFRASTRUCTURE INVESTMENTS ARE BOOSTING COMPETITION IN FAVOUR OF CONTRACTORS, THE LONG-TERM ISSUE OF LOW PROFIT MARGINS IN THE CONSTRUCTION INDUSTRY STILL LOOMS, SAYS MATTHEW MACARAS, SENIOR SOLUTION ENGINEER AT INEIGHT.
A
ustralia is in the midst of one of the greatest infrastructure booms in its history. While infrastructure spending was already playing catch-up to fill the gaps created by migration and population growth over the past decade, the pandemic and the federal government’s commitment to infrastructure investment to boost the economy in the post-COVID world has boded well for the sector. The federal government released its 2021 Australian Infrastructure Plan
in September last year, advocating for a new wave of infrastructure reform to be driven by a $110 billion investment. The government’s vision for the next 15 years addresses a range of areas for reform, including city redevelopment and expansion, housing density and public and private transport. This dynamic market condition has been welcomed by contractors, particularly the smaller and medium-sized companies, who are finding themselves in need of growth and expansion to meet the
size and scale of incoming work. And while this may have temporarily relieved some of the pressure felt by contractors to reduce their profit margins to win contracts, the underlying issue has not gone away, according to industry expert Matthew Macaras. As a Senior Solutions Engineer working with the global construction management software company InEight, Macaras deals with Australian contracting businesses of all sizes to help them streamline their project management processes. InEight’s tools help contractors minimise their project risks by creating more transparency.
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