Crisis Averted: How Construction Weathered Covid Storm Insolvency Australia

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>In this <em>TUD</em>+ Briefing, CreditorWatch chief executive Patrick Coughlan discusses the potential increase in court cases and insolvencies due to the end of the JobKeeper wage subsidy and HomeBuilder grant schemes.</p><p>According to CreditorWatch, there has been a 61 per cent jump in monthly external administrations since January, the highest rise in 12 months.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><iframe sandbox="allow-forms allow-scripts allow-pointer-lock allow-same-origin allow-top-navigation allow-presentation" class="embed-responsive-item" allowfullscreen="" frameBorder="0" style="max-width:574px" width="100%" height="323" src="https://www.youtube.com/embed/3lvobYtd0Qo"></iframe></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><strong>You are currently experiencing </strong><strong><em>The Urban Developer </em></strong><strong>Plus (TUD+), our premium membership for property professionals. </strong><a href="https://www.theurbandeveloper.com/membership-plans"><u><strong>Click here</strong></u><strong> to learn more.</strong></a></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/4fb872c4-2507-449c-af93-4c928c2ed849.png" width="800"/></picture><div></div></div></div></div></div></div></div>

In this TUD+ Briefing, CreditorWatch chief executive Patrick Coughlan discusses the potential for a rise in court cases and insolvencies...

STEEL SHORTAGE CONSTRUCTION AUSTRALIA

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Nerves of steel are not something Australia’s construction industry is ever likely to be short on.</p><p>And now, more than ever, it will need them to overcome the challenges it is facing from major threats to the supply chain and the skyrocketing price of its key building material.</p><p>Steel exports from China have begun to plunge—reportedly already by more than 50 per cent in recent months—heightening concerns of a rising shortage that will exacerbate the stress cracks of an industry already under pressure.</p><p>To meet its target for peak carbon emissions by 2030, the world’s largest steel exporter has been winding back its steel production at the same time countries around the world have ramped up construction activity as part of Covid-19 recovery programs.</p><p>Meanwhile, new outbreaks, most recently of the Delta variant of the virus, have led to congestion at its major ports, compounding the supply issues and resulting in significant hikes in sea freight costs. </p><p>At least 30 per cent of Australia’s steel supply is imported, the majority from China. </p><p>With demand already outstripping supply, it is predicted soaring steel prices will climb even higher in coming months, further cementing the <a href="https://www.theurbandeveloper.com/articles/construction-industry-a-360bn-house-of-cards">construction industry’s “profitless boom”</a>. </p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/7fb227b0-9e4a-499d-b1c8-8edabf9f3ece.jpg" width="800"/></picture><div><span style="align-content:center;opacity:0.8">▲ The QFES and QAS Bundaberg, built by Hutchinson Builders.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>Steel and other building material shortages also have the potential to derail the delivery of Australia’s <a href="https://www.theurbandeveloper.com/articles/construction-industry-buckles-under-110bn-infrastructure-pipeline">$110-billion infrastructure pipeline</a> if the <a href="https://www.theurbandeveloper.com/articles/construction-material-prices-labor-shortages-supply-chain">supply chain issues</a> worsen. </p><p>“Nobody really knows what’s going to happen ... if you did you could make a fortune on the futures,” said Scott Hutchinson, chairman of Australia’s largest privately-owned construction company Hutchinson Builders.</p><p>“We’re dealing with them [the supply issues]. You just buy what you can and do what you can—you can’t stop the job. Things, generally, are difficult. It’s not an easy game. It’s a struggle.” </p><p>Hutchinson estimates that rising steel prices during the past 12 months so far have shaved at least 10 per cent off the company’s already slim profit margin. </p><p>“You’ve just got to lose money on the steel on projects you’ve already signed up on, and for the projects going forward you can either put in a high rate for steel or get the client to underwrite the value of the steel,” he said. </p><p>Australian Steel Association chief executive, David Buchanan, said import prices had almost doubled over the past year from $1100 per tonne to nearly $2000 per tonne for structural steel products. </p><p>He said the rising price had triggered a “chill effect” on buying and, combined with the impact of the recent slowdown in production in China, the volume of imported hot-rolled steel coil had hit its lowest level in the past three months. </p><p>In April, the removal of China’s 13 per cent manufacturers tax rebate caused a sudden surge in its steel price and, on top of that, there is speculation its steel products will be slapped with an export tax from early September. </p><p>“We haven’t seen too much damage as yet,” Buchanan said.</p><p>“I think we’ve been insulated in Australia by the two big steel mills we’ve got here. They’ve kept their prices relatively competitive compared to the world market. </p><p>“But we can see what’s coming, and what’s coming is shortages and delays and more price increases.”</p><p>Adding to the construction sector’s supply chain and material cost woes are major shipping bottlenecks with delays of up to 10 days to get vessels into some of China’s ports.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/7ec5b296-cd53-4d53-ba59-46199760500c.jpg" width="1600"/></picture><div><span style="align-content:center;opacity:0.8">▲ The cost and availability of steel from China is a huge factor in the materials supply issue.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>“Shipping is probably the biggest challenge for the industry at the moment,” Buchanan said. “The whole supply chain is getting extended and that’s a major issue. </p><p>“Because of those delays you’re going to see shortages in the total inventory in the market. </p><p>“Coupled with this, you’ve got pricing increases from the shipping lines, huge rises in container costs and that’s all adding to the increase in the steel prices.” </p><p>Buchanan said all indications were that steel prices will likely continue to spiral upwards, albeit at a slower rate, at least into the first half of 2022. </p><p>“We’ve certainly got some very challenging times in front of us,” he said. “And until the supply chain from overseas can catch up, steel shortages will also continue.” </p><p>In the latest Global Construction Monitor, the Royal Institution of Chartered Surveyors’ cited issues around sourcing building materials and the related costs in the wake of interruptions to supply chains as major concerns. </p><p>Material costs were deemed a “significant challenge” by 80 per cent of survey respondents in the Asia Pacific region. Almost two-thirds of them also suggested that shortages of materials were hampering construction activity. </p><p>The report indicates that with projections for material cost inflation increasing to more than 8 per cent over the next 12 months “pressures seem set to intensify … [and] drive costs higher”. </p><p>“Taken altogether, there appears to be several emerging headwinds for the sector to contend with and, if these were to continue to escalate, they may well begin to take some of the steam out of the current global uplift,” it said. </p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/a9f4c47e-5900-4a59-946c-acf092f25bc4.jpg" width="1600"/></picture><div><span style="align-content:center;opacity:0.8">▲ Delays in supply are causing massive cost blowouts for projects across Australia.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>On the Gold Coast, the massive hikes in steel prices as well as increasing supply shortages are already biting into the city’s booming and highly competitive residential construction sector. </p><p>“We’re probably very close to a $1-million loss off our bottom-line over the past six months because of the rise in steel prices ... and we’re only a tenth of the size of the bigger builders,” said Steve Marais, managing director of locally-based Condev Construction. </p><p>Marais said steel supply shortages meant that there was “a degree of redesign that has to occur” day-to-day on projects in its workbook, including Marquee Development Partners’ 17-level <a href="https://www.theurbandeveloper.com/articles/tower-plans-for-gold-coast-mansion">One Cannes apartment tower</a> in Surfers Paradise. </p><p>“You’ve just got to adapt to what’s available,” he said. </p><p>“The concern to all of us as builders is not necessarily the extra cost of the steel but, more specifically, the issue of non-supply.</p><p>“Our projects, generally, cost us around $50,000 a week to run.</p><p>“If we have supply problems for two or three weeks that’s $100,000 or $150,000, so you’d rather be paying more for your steel than losing time.”</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><strong>You are currently experiencing </strong><em><strong>The Urban Developer</strong></em><strong> Plus (TUD+), our premium membership for property professionals. </strong><a href="https://www.theurbandeveloper.com/membership-plans"><strong><u>Click here</u></strong><strong> to learn more.</strong></a></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/4fb872c4-2507-449c-af93-4c928c2ed849.png" width="800"/></picture><div></div></div></div></div></div></div></div>

Significant price rises loom large for steel as shortages and supply chain issues start to derail projects. The Urban Developer investigates… 

Why Is Suicide So Widespread in the Construction Sector?	

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>The construction sector is keenly aware of the confronting issues it has relating to men’s health. It’s the industry with the highest rate of male suicide in Australia. </p><p>Men in the construction industry are 53 per cent more likely to die by suicide than other employed males in this country. </p><p>That’s more than 190 construction workers a year. </p><p>A construction worker is lost to suicide every second day, according to figures from the University of Melbourne and Deakin University.</p><p>In a sector with stringent health and safety regulations, research commissioned by the national suicide prevention group Mates in Construction found that death by suicide in the sector is six times higher than death due to site accidents. </p><p>“One of the big issues was that 93 per cent of construction workers who had committed suicide in the past had never sought professional help,” Mates in Construction New South Wales chief executive officer Brad Parker​ said.</p><p>“They either didn’t know where to find it, they didn’t want to, or— here’s the big one—they weren&#x27;t encouraged to.” </p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><strong>Number of suicides among male construction workers and male non-construction workers 2001-2018</strong></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><table><thead><tr><th>State </th><th>Construction workers</th><th>Non construction workers</th><th>Total</th></tr></thead><tbody><tr><th>ACT</th><th>58</th><th>180</th><th>238</th></tr><tr><th>NSW</th><th>980</th><th>2943</th><th>3923</th></tr><tr><th>NT</th><th>75</th><th>199</th><th>274</th></tr><tr><th>Qld</th><th>759</th><th>1951</th><th>2710</th></tr><tr><th>SA</th><th>209</th><th>634</th><th>843</th></tr><tr><th>Tas</th><th>107</th><th>317</th><th>424</th></tr><tr><th>Vic</th><th>850</th><th>2376</th><th>3226</th></tr><tr><th>WA</th><th>583</th><th>1318</th><th>1901</th></tr><tr><th>Australia</th><th>3621</th><th>9918</th><th>13539</th></tr></tbody></table></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><sup>^ Suicide in the construction industry report, July 2020. The University of Melbourne, Deakin University, Mates in Construction. </sup></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><h2><strong>Driving Australia’s economy</strong></h2><p>The construction sector is Australia&#x27;s third largest after mining and finance. It produces around 8 per cent of the nation’s gross domestic product (GDP) and encompasses more than 330,000 businesses. </p><p>The sector directly employs more than one million people—that’s around 9 per cent of Australia’s total workforce.</p><p>Between 2001 to 2018 there were 3621 suicides by male construction workers in Australia, and 9918 suicides among employed males in other occupations.</p><p>Productivity Commission chair Michael Brennan has said that mental ill-health has huge impacts on people, communities and our economy. But mental health is treated as an add-on to the physical health system. And this has to change. </p><p>The costs of mental ill-health and suicide to Australia’s economy was between $43 billion and $51 billion in 2018-2019, according to the Productivity Commission.</p><p>This figure includes the direct cost of healthcare and support services ($18 billion), the cost of lost productivity due to lower employment, absenteeism and presenteeism (between $10 billion and $18 billion), and informal care provided by family and friends ($15 billion).</p><p>So, why is this issue so prevalent in the construction sector? </p><p>The latest Melbourne and Deakin University research figures show evidence of a decline in suicide rates among construction workers, and a narrowing of the suicide disparity between construction and non-construction workers, but the issue remains unacceptably high among this group.</p><p>Parker says there are a number of factors at play, but part of the reason is that the sector is dominated by men. </p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><h2><strong>Pressure, tight deadlines, blokey, and ‘she’ll be right’</strong></h2></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>In a male-dominated culture, Mates in Construction case manager Kayte Wilson said the “she&#x27;ll be right” attitude played a part.</p><p>“There’s a stigma for men talking to others about psychological stress and their feelings if they’re not coping,” Wilson said. </p><p>“As we know, suicide can be due to multiple reasons with work and home directly overlapping.”</p><p>The spiral can start from a relationship break down, or any kind of loss, from a loved one to gambling.</p><p>Wilson said this was the case for up to 80-90 per cent of the males she speaks to. </p><p>“Your relationship ends and next you&#x27;ve got unexpected financial problems... And suddenly you don&#x27;t know which way is up,” she said. </p><p>Wilson said a lack of job security was also a factor.</p><p>“It’s the only industry I know where they work excruciatingly long hours only to work themselves out of a job—every six months,” she said.</p><p>“They work their heart out and then the job ends.” </p><p>Meanwhile, the aim to complete large projects on-budget means project delivery timelines are not always realistic and can be prioritised over employee wellbeing. </p><p>TradeMutt director and co-founder of mental health helpline TIACS Edward Ross said the drive for cost savings can itself come at a price. </p><p>“There is a complete lack of understanding and misconception about what mental health means … a lot of people battle through it but aren&#x27;t talking about it,” Ross said. </p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/fc9fabc1-2b94-4892-87bb-84d4cd98a03d.jpg" width="960"/></picture><div><span style="align-content:center;opacity:0.8">▲ TradeMutt make work wear designed to start conversations about mental health.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>“That is especially true of people in leadership positions. </p><p>“They’re higher up in the business but they’re not talking to their staff about what they’re going through as well, which makes it harder for people below them to speak up when they’re having trouble.” </p><p>RMIT research by Professor Helen Lingard and associate professor James Harley identified the masculine culture of the predominantly male construction sector as having the potential to affect men’s mental health in two ways.  </p><p>First, by creating pressures to accept highly demanding conditions of work to satisfy responsibilities as a family “breadwinner”, and second, in discouraging seeking help in the event of psychological distress or emerging mental health issues.</p><p>The research found that low job control over the way work is performed and high psychological demands, such as workload and work pressure, were identified as risk factors for suicide among Australian men.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><h2> ‘<strong>Having someone check on me has been life-saving’</strong></h2></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/152a4d7d-eb68-4334-bf28-3a06a2e904cc.jpg" width="1254"/></picture><div><span style="align-content:center;opacity:0.8">▲ *Geoff, not his real name, says he found it extremely difficult to seek help when he needed it.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>Geoff describes himself as usually the class clown, who loved going to the pub with mates, always one to have a joke.</p><p>But the combination of his long-term relationship ending and missing out on a permanent role at work was the tipping point.</p><p>Geoff now looks back and recognises this was the beginning of his spiral.</p><p>Describing the experience as frightening, at his lowest point, he presented to his local emergency department after an attempt to take his own life.</p><p>“We had relocated to Australia away from family and friends and I hadn&#x27;t realised, but I became heavily reliant on my partner for daily support,” he said. </p><p>“When I missed out on a role at work I was unable to secure a permanent visa.”</p><p>This combination of his inability to gain a permanent visa, his relationship breakdown and having to move homes because he couldn’t afford the rent on his sole income sent Geoff into a depression, which led to thoughts of suicide.</p><p>“I didn’t know where to go or who to talk to,” he said.</p><p>“I felt embarrassed, ashamed and that if I admitted to these thoughts it could impact my ability to secure employment.”  </p><p>In hindsight, Geoff noticed he began to withdraw. He couldn’t leave the house and felt a lack of motivation, a lack of interest in activities with friends, and a mounting reliance on substances. </p><p>He has since been referred to professionals for support. He was also referred to the Mates helpline, and describes making that first call as “extremely difficult”.</p><p>“Having someone to check in on me every week and talk about the counselling appointments or my plans for the future, or even just how the week is going has been life-saving,” he said. </p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><h2><strong>Mental health—normalising the conversation</strong></h2></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>To change the face of mental health in Australia, Ross said, this invisible issue must be made impossible to ignore, and to ensure people access care when they need it. </p><p>“Our goal is to start conversations because we know how hard it can be, especially if you are struggling,” Ross said.</p><p>“And to make people feel more comfortable when it comes to seeking help to talk to a professional.</p><p>“Knowing that we have a community full of people who are looking after their mates is what we love seeing the most.”</p><p>As a result of the pandemic, Wilson said the topic of mental health had been bought to the forefront.</p><p>“The more the topic of mental health and suicide is out there in the media, the more we can continue to normalise the conversation, the better,” she said.  </p><p>“At the end of the day, you spend more time with your workmates than you do at home. It can be the small and seemly insignificant conversations that mean the most to people.”</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Construction employers, employees and their families can call or text:<em> This Is A Conversation Starter</em> (<a href="https://www.tiacs.org/">TIACS</a>) on 0488 846 988 for free professional mental health support.<br><br>Mates in Construction 1300 642 111<br><a href="https://www.lifeline.org.au/">Lifeline</a> 13 11 14<br><a href="https://www.beyondblue.org.au/">Beyond Blue</a> 1300 22 46 36 <br><a href="https://headspace.org.au/">Headspace</a> 1800 650 890</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><strong>You are currently experiencing </strong><em><strong>The Urban Developer </strong></em><strong>Plus (TUD+), our premium membership for property professionals. </strong><a href="https://www.theurbandeveloper.com/membership-plans"><u><strong>Click here</strong></u><strong> to learn more.</strong></a></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/4fb872c4-2507-449c-af93-4c928c2ed849.png" width="800"/></picture><div></div></div></div></div></div></div></div>

Men in the construction industry are 53 per cent more likely to die by suicide than other employed males across Australia...

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<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Mirvac has secured development approval for a $250 million logistics hub in western Sydney, spurred by online sales trends in the wake of coronavirus confinement measures.</p><p>The ASX-listed developer won approval from Cumberland Council to develop the 14-hectare site at 300 Manchester Road, Auburn, into an industrial estate and employment precinct that blends flexible warehousing and office space. </p><p>Mirvac will undertake the 73,000sq m project in a joint venture with an investment vehicle sponsored by Morgan Stanley Real Estate Investing, with whom it purchased the site in 2019 from property group Payce for $94.2 million.</p><p>Construction is slated to start in the 2021 financial year.  </p><p>Mirvac said that the site, located 3.3km from Parramatta CBD and 18km from Sydney&#x27;s CBD will cater to the surge in online shopping and the growing need for last mile delivery locations.</p><p>Mirvac industrial general manager Richard Seddon said that the vision was to deliver a precinct that represents a new age for industrial estates. </p><p>&quot;Our plans include bringing leading technology together with unique amenity for future workers and the local community.” </p><p>Seddon points to growing e-commerce trends, with more people staying at home, driving the need for new logistics hubs, with recent research from Nielsen showing a 45 per cent growth in online sales in Australia when compared to the same time last year—which is likely to enhance consumer adoption of buying online.</p><p>“With more people staying at home, there has been a rapid increase in demand for e-commerce services. </p><p>&quot;To meet future needs we are committed to delivering cutting-edge industrial warehouses and logistics facilities like the one planned for Auburn.”</p><p>Only last month, the ASX-listed diversified developer <a href="https://theurbandeveloper.com/articles/rea-group-withdraws-guidance-coronavirus">withdrew </a>the 3-4 per cent earnings per share growth and 5 per cent dividend-per-share growth it restated when announcing its half-year earnings.</p><p>Yet Mirvac continues to push ahead new projects amid the economic uncertainty surrounding Covid-19, also lodging plans for a 143-apartment <a href="https://theurbandeveloper.com/articles/mirvac-moves-ahead-on-1bn-newstead-masterplan">tower </a>in central Brisbane.</p><p>“Against the current climate, Mirvac has adapted its operations and is progressing development plans and construction across its portfolio,&quot; Seddon said.</p><p>&quot;Continuing momentum on our developments ensures we are well placed to help support the recovery of Australia’s economy on the other side of Covid-19.&quot;</p></div></div></div></div></div>

Mirvac has won development approval for a new-age logistics hub, spurred by online sales trends in the wake of coronavirus confinement measures ...

Concord Hospital redevelopment for Roberts Pizzarotti

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Roberts Co Group has acquired the remaining 50 per cent share of Roberts Pizzarotti from the <a href="https://theurbandeveloper.com/articles/ex-multiplex-scion-joins-with-construction-giant-for-new-firm">Impresa Pizzarotti Group</a> to become wholly Australian owned.</p><p>After just four years in the construction industry the privately-owned business has gone from strength to strength with big ticket projects including <a href="https://theurbandeveloper.com/articles/cbre-north-sydney">Zurich Tower</a>, the North Shore Health Hub and the $341 million <a href="https://theurbandeveloper.com/articles/roberts-pizzarotti-to-deliver-341m-concord-hospital-redevelopment">Concord Hospital</a> redevelopment currently under way. </p><p>Roberts Co chief executive Alison Mirams said it was “business as usual” for the boutique tier one construction firm.</p><p>“We feel lucky to now be fully Australian owned ... we had a company that had two shareholders and we now have one shareholder, it’s business as usual,” Mirams said.</p><p>“We have $650 million in projects, 140 people on staff and our turnover will be $400 million. We’ve grown rapidly but in a really careful way.”</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/d66e9f69-92f0-41af-82db-e3489410ca3a.jpg" width="800"/></picture><div><span style="align-content:center;opacity:0.8">▲ Alison Mirams, CEO of Roberts Co, formerly Roberts Pizzarotti.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>“If you look at how many overseas contractors have come over here and struggled. Pizzarotti was guided by Andrew Roberts and the executive team, and our processes and procedures. </p><p>“There were no Italian nationals in the team, there’s no personnel changes, and the financial position of the company remains the same.</p><p>Mirams said the company has been heavily focused on improving the industry. </p><p>“The better you make the industry, the better it is for everyone,” she said.</p><p>“We have looked at the construction industry and how we can improve it … particularly with regards to mental health and wellbeing.</p><p>“Our Concord Hospital redevelopment project has been part of a five-day work week study. I’m hoping when we have (the results of an interim report) that I am going to have hard data and we can start to make changes.”</p><p>The UNSW two-year study is looking at whether a five-day work week, instead of the six-day industry standard, is beneficial to the mental health and wellbeing of construction workers. </p><p>Mirams said Covid had heavily impacted the industry, but like many other sectors they had <a href="https://theurbandeveloper.com/articles/lockdown-opens-door-for-technology-adoption-in-construction">innovated and adapted</a> to roll out sanitisation on site and allow for social distancing. </p><p>“Covid has proved that we can work flexibly and be onsite. I’m hoping it becomes the new normal.”</p></div></div></div></div></div>

Roberts Co Buys Out Italian Shareholder to Become Australian-owned

1cff85c9-c4a0-4012-9027-aca54faf2d77

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>A predicted sustained decline in <span class="mce-spellchecker-annotation mce-spellchecker-word mce-cram_68326081371644725030478" aria-invalid="spelling" data-mce-highlight-id="mce-cram_68326081371644725030478" data-mce-bogus="1" data-mce-annotation="cashflow" data-mce-lingo="en_au">cashflow</span> will be the key driver of insolvency risk in 2022, according to <span class="mce-spellchecker-annotation mce-spellchecker-word mce-cram_90212919481644725030478" aria-invalid="spelling" data-mce-highlight-id="mce-cram_90212919481644725030478" data-mce-bogus="1" data-mce-annotation="CreditorWatch’s" data-mce-lingo="en_au">CreditorWatch’s</span> Business Risk Report.</p><p>The warning comes as the <span class="mce-spellchecker-annotation mce-spellchecker-word mce-cram_5986360091644725030479" aria-invalid="spelling" data-mce-highlight-id="mce-cram_5986360091644725030479" data-mce-bogus="1" data-mce-annotation="ASIC’s" data-mce-lingo="en_au">ASIC’s</span> latest data on insolvencies shows a 38 per cent increase in the number of insolvencies in the construction sector.</p><p>The number of construction firms going into external administration jumped from 237 in the third quarter of 2021 to 328 in the fourth quarter of 2021.</p><p>The number of court actions has also hit 58 per cent over the last quarter compared to the corresponding period the year before.</p><p><span class="mce-spellchecker-annotation mce-spellchecker-word mce-cram_920980454101644725030479" aria-invalid="spelling" data-mce-highlight-id="mce-cram_920980454101644725030479" data-mce-bogus="1" data-mce-annotation="EarlyTrade’s" data-mce-lingo="en_au">EarlyTrade’s</span> supply chain scorecard also pointed to the <span class="mce-spellchecker-annotation mce-spellchecker-word mce-cram_503588127111644725030479" aria-invalid="spelling" data-mce-highlight-id="mce-cram_503588127111644725030479" data-mce-bogus="1" data-mce-annotation="ASIC" data-mce-lingo="en_au">ASIC</span> data, stating that November 2021’s figures alone showed a 57 per cent increase in insolvencies as the effects of both restrictions and the withdrawal of government support were felt.</p><p>From the calendar year for 2020 to 2021 there was a 17 per cent increase in the insolvency rate for the construction sector.</p><p>The construction sector is the highest industry in arrears with 12.41 per cent of the sector affected. The accommodation sector followed with 10.92 per cent and IT with 10.77 per cent.</p><p><span class="mce-spellchecker-annotation mce-spellchecker-word mce-cram_929513231261644725038204" aria-invalid="spelling" data-mce-highlight-id="mce-cram_929513231261644725038204" data-mce-bogus="1" data-mce-annotation="EarlyTrade" data-mce-lingo="en_au">EarlyTrade</span> also agreed and said that major public infrastructure activity will increase, hitting $52 billion 2023.</p><p>This is due to supply chain concerns, material costs increasing and labour shortages and restrictions.</p><p>“A tsunami of projects is cresting in 2023, at precisely the time cost pressures—inflation, materials, insurance—and competition for skilled workers are escalating for the industry,” <span class="mce-spellchecker-annotation mce-spellchecker-word mce-cram_704046123211644725037634" aria-invalid="spelling" data-mce-highlight-id="mce-cram_704046123211644725037634" data-mce-bogus="1" data-mce-annotation="EarlyTrade’s" data-mce-lingo="en_au">EarlyTrade’s</span> chief executive Guy <span class="mce-spellchecker-annotation mce-spellchecker-word mce-cram_755627740251644725038202" aria-invalid="spelling" data-mce-highlight-id="mce-cram_755627740251644725038202" data-mce-bogus="1" data-mce-annotation="Saxelby" data-mce-lingo="en_au">Saxelby</span> said.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/6a5d1f62-1c9e-4764-b986-63f9c0ac3226.jpg" width="800" data-mce-src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/6a5d1f62-1c9e-4764-b986-63f9c0ac3226.jpg"></picture><div><span style="align-content: center; opacity: 0.8;" data-mce-style="align-content: center; opacity: 0.8;">▲ Insolvencies in the construction sector jumped dramatically in January. Image: <span class="mce-spellchecker-annotation mce-spellchecker-word mce-cram_290950363221644725038105" aria-invalid="spelling" data-mce-highlight-id="mce-cram_290950363221644725038105" data-mce-bogus="1" data-mce-annotation="iStock" data-mce-lingo="en_au">iStock</span>.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>The <span class="mce-spellchecker-annotation mce-spellchecker-word mce-cram_149979617231644725038200" aria-invalid="spelling" data-mce-highlight-id="mce-cram_149979617231644725038200" data-mce-bogus="1" data-mce-annotation="CreditorWatch" data-mce-lingo="en_au">CreditorWatch</span> report also pointed out that the sector’s unique payment structures were also to blame.</p><p><span class="mce-spellchecker-annotation mce-spellchecker-word mce-cram_629478455561644725042338" aria-invalid="spelling" data-mce-highlight-id="mce-cram_629478455561644725042338" data-mce-bogus="1" data-mce-annotation="EarlyTrade" data-mce-lingo="en_au">EarlyTrade</span> said that head contractors are trying to resolve the payment structures issue by scaling up via tech to be able to process payments to subcontractors faster.</p><p>Subcontractors usually operate on thirty day payment terms but are now opting more and more for early payment options.</p><p>“<span class="mce-spellchecker-annotation mce-spellchecker-word mce-cram_6180010922061644725055547" aria-invalid="spelling" data-mce-highlight-id="mce-cram_6180010922061644725055547" data-mce-bogus="1" data-mce-annotation="Earlytrade" data-mce-lingo="en_au">Earlytrade</span> has seen a five-fold increase in subcontractor registrations as our clients try to drive productivity and offer more to <span class="mce-spellchecker-annotation mce-spellchecker-word mce-cram_3886357832071644725055547" aria-invalid="spelling" data-mce-highlight-id="mce-cram_3886357832071644725055547" data-mce-bogus="1" data-mce-annotation="subbies" data-mce-lingo="en_au">subbies</span> by way of technology,” <span class="mce-spellchecker-annotation mce-spellchecker-word mce-cram_1721292331921644725055161" aria-invalid="spelling" data-mce-highlight-id="mce-cram_1721292331921644725055161" data-mce-bogus="1" data-mce-annotation="Saxelby" data-mce-lingo="en_au">Saxelby</span> said.</p><p>“Oftentimes for <span class="mce-spellchecker-annotation mce-spellchecker-word mce-cram_999318682051644725055526" aria-invalid="spelling" data-mce-highlight-id="mce-cram_999318682051644725055526" data-mce-bogus="1" data-mce-annotation="subbies" data-mce-lingo="en_au">subbies</span>, it comes down to cash flow and cash conversion—with better cash flow flexibility comes the control to manage forward orders, retain staff and successfully navigate the boom.”</p><p>Australian Construction Association said that if the gap in productivity growth between the construction industry and other industries over the last 30 years could be halved, it would generate $15 billion in infrastructure every year for the same expenditure and employ another 15,000 people.</p><p>“To deliver the record pipeline of infrastructure projects, the industry must innovate to find ways to do more with less...closing the gap in productivity growth between construction and other major industries is essential,” <span class="mce-spellchecker-annotation mce-spellchecker-word mce-cram_3638486421981644725055480" aria-invalid="spelling" data-mce-highlight-id="mce-cram_3638486421981644725055480" data-mce-bogus="1" data-mce-annotation="ACA" data-mce-lingo="en_au">ACA</span> chief executive Jon Davies said.</p><p>Meanwhile Western Australia remains the best performing state according to the <span class="mce-spellchecker-annotation mce-spellchecker-word mce-cram_478359091931644725055162" aria-invalid="spelling" data-mce-highlight-id="mce-cram_478359091931644725055162" data-mce-bogus="1" data-mce-annotation="ASIC" data-mce-lingo="en_au">ASIC</span> data as boosted by both its mining and agricultural sectors.</p><p>NSW however has the most regions with the highest default risks most notably <span class="mce-spellchecker-annotation mce-spellchecker-word mce-cram_8930502292721644725059886" aria-invalid="spelling" data-mce-highlight-id="mce-cram_8930502292721644725059886" data-mce-bogus="1" data-mce-annotation="Bringelly-Green" data-mce-lingo="en_au">Bringelly-Green</span> Valley with 7.81 per cent and <span class="mce-spellchecker-annotation mce-spellchecker-word mce-cram_7299193882731644725059886" aria-invalid="spelling" data-mce-highlight-id="mce-cram_7299193882731644725059886" data-mce-bogus="1" data-mce-annotation="Guildford-Merrylands" data-mce-lingo="en_au">Guildford-Merrylands</span> with 7.84 per cent.</p><p>Defaults may rise within the Melbourne <span class="mce-spellchecker-annotation mce-spellchecker-word mce-cram_4512743483581644725063307" aria-invalid="spelling" data-mce-highlight-id="mce-cram_4512743483581644725063307" data-mce-bogus="1" data-mce-annotation="CBD" data-mce-lingo="en_au">CBD</span> as regional Victoria is the best performing in all of Victoria for default risk.</p><p>Northern Sydney and regional industrial areas remain steady but West Sydney is struggling with default risk as many people living in West Sydney cannot work from home and are affected adversely by restrictions.</p><p>North Queensland and agricultural centres are performing better than tourism areas and the Gold Coast.</p><p>The healthcare sector remains the safest industry in terms of default risk and arrears.</p><p><br></p><p>Nationally, the default risk sits at 5.7 per cent.</p></div></div></div></div></div>

  Construction insolvencies have increased and so have delays on projects prompting head contractors to use tech to scale up paying and retaining...

c7289f40-7209-4ae8-9cc2-3fe2f7ca745c

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><strong>Top-tier contractors Multiplex and Hutchinson Builders are competing for one of Australia’s largest ever private construction contracts — the “city shaping” Queen’s Wharf contract worth up to $1.5 billion. </strong></p><p>Billed as Queensland’s largest private single development, the $3.9 billion Queen’s Wharf will take up 20 per cent of Brisbane’s CBD — 27.3 hectares — and feature a purpose-built casino, pedestrian bridge and entertainment precinct. </p><p>The construction contract, worth between $1.3 billion and $1.5 billion, is for the development of the integrated-resort component of Queen’s Wharf and excludes the 630-apartment residential tower.</p><p>Probuild was awarded the tender for the basement and excavation works, which are <a href="https://theurbandeveloper.com/articles/construction-has-begun-on-the-first-stage-of-queens-wharf-project">currently under way</a>. </p><p>A spokesperson for Queen’s Wharf developer Destination Brisbane Consortium said that they are working through a “robust tender process”. </p><p>“We are working closely with the final tenderers and hope to make an announcement in the near future.”</p><p>Related: <a href="https://theurbandeveloper.com/articles/multiplex-breaks-its-silence-on-yuhu-saga-">Multiplex Breaks its Silence on Yuhu Saga</a></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/7298cdad-2315-480c-839a-c5ba77a86512.jpg" width="2600"/></picture><div><span style="align-content:left;opacity:0.8">Artistic renderings of the Queen&#x27;s wharf integrated-resort precinct. </span><span style="float:right;opacity:0.8">Image: Cottee Parker Architects. </span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>The Cottee Parker-designed integrated resort development includes the dual-tower The Star-branded hotel and the construction of The Rosewood Hotel and The Dorsett Hotel. </p><p>The project, approved last year, is being developed by the Destination Brisbane Consortium. Casino giant Star has a 50 per cent equity share in the consortium alongside Far East Consortium (25%) and Chow Tai Fook Enterprises (25%). </p><p>Hutchinson and Multiplex are working through the complicated tender, which is lump-sum with at least 60 per cent of the project costs to be executed under the construction contract. </p><p>In its half yearly results, Star said it was targeting a total $2.4 billion total project cost and that the winning contractor will be announced in the fourth quarter. Industry sources observed it could be announced as early as April. </p><p>The residential component of up to 2000-plus apartments are scheduled to come to market in the middle of the year. </p><p><em>The Urban Developer</em> reached out to Multiplex and Hutchinson Builders separately, both declined to comment. </p></div></div></div></div></div>

Top-tier contractors Multiplex and Hutchinson Builders are competing for one of Australia’s largest ever private construction contracts.

Springfield Seeks Development Partner for $88bn Masterplan

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Maha Sinnathamby’s Springfield City Group has appointed Moelis Australia to lead the global search for a development partner for its $88 billion Springfield masterplan, west of Brisbane.</p><p>Located in one of Australia’s fastest-growing growth corridors, Springfield was privately established in 1992 on 2,860 hectares of Ipswich land by Sinnathamby and his deputy chairman Bob Sharpless. </p><p>Sinnathamby said the group is seeking a partner, or consortia of partners, to effectively “finish” building the city, fast-tracking the economy’s growth and building greater amenity for residents.</p><p>“The cornerstones are already in place: the transport links are built; there are eleven schools, a university and a hospital—the hard work has been done.”</p><p>About 25 per cent of Springfield’s development has been completed so far, much of it through long-term partnerships with Australian property groups Lendlease, Aveo (<a href="https://theurbandeveloper.com/articles/aveo-accepts-13bn-brookfield-takeover-bid">recently acquired</a> by Brookfield) and Chinese major corporate R&amp;F properties.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/7609afc9-0582-4b1e-9450-e32470575473.jpg" width="800"/></picture><div><span style="align-content:center;opacity:0.8">▲ The Springfield masterplan will include a vast network of transport links, eleven schools, a university and a hospital.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>Planning approvals for 2,685,600sq m of mixed-use development is in place, making Springfield Australia’s largest masterplanned city. </p><p>At least $18 billion dollars has already been invested, with a further $70 billion needed to fully realise the masterplan.</p><p>Strong interest in the city’s health and education assets is anticipated: the Mater hospital, with approval for 1,200 beds anchors the 52-hectare health precinct; and a University of Southern Queensland campus is the centrepiece of an 18-hectare education precinct with capacity for 10,000 students.</p><p>The city is also home to Mirvac’s Orion shopping centre, and is slated as the future headquarters of the Brisbane Lions AFL team.</p><p>Connected to the Brisbane CBD and Brisbane Airport by rail and freeway, Greater Springfield is currently home to 43,000 residents, with the population projected to grow to 115,000-plus residents by the year 2036.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/501a93ad-84d2-4656-a190-51ee0a9554a8.jpg" width="800"/></picture><div><span style="align-content:center;opacity:0.8"> ▲ The new Springfield home of AFL team the Brisbane Lions is expected to open in mid-2021.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>Urbis national director of design James Tuma said greater Springfield is a global benchmark for city creation, offering greenfield space, access to a young, aspirational population, and a pipeline of opportunities in a strong growth market.</p><p>“The south west corridor of south-east Queensland is one of the highest performing growth corridors in the country, with government projections indicating it will grow faster and sooner than all others in the region,” Tuma said.</p><p>Multinational energy conglomerate Engie is on board with Springfield as part of a 50 year strategic alliance to invest in renewable energy generation and storage infrastructure, district energy schemes, green mobility solutions, energy efficiency initiatives and a dedicated research and innovation centre.</p><p>Sinnathamby said he and Sharpless felt the time was right to turbo charge the city’s success, bringing Moelis on board because of their global credentials and successful track record in the property sector.</p></div></div></div></div></div>

The quest begins to turbo-charge Brisbane's growth.

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<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="ci cl"><p><strong>Apartment building was the weakest performing area of activity, declining for twelve consecutive months, although at a slightly milder rate according to the latest </strong><a href="https://theurbandeveloper.com/articles/building-construction-shrinking-at-a-concerning-rate-"><strong>Australian Performance of Construction Index</strong></a><strong>. </strong></p><p>Subdued market conditions due to soft new orders, tight lending conditions, falling prices and caution by prospective buyers were key concerns according to residential building respondents of the index, released by the Australian Industry Group and Housing Industry Association.</p><p>The weaker apartment sector echoes sentiment made by the Reserve Bank last month, with tighter lending standards <a href="https://theurbandeveloper.com/articles/developers-and-apartment-buyers-market-risks-elevated-but-contained">a cause of concern on developers of apartments</a>. </p><p>The index registered 45.6 points in March, an increase of 1.8 points from February, revealing a slight easing for a second consecutive month in the construction industry’s aggregate rate of contraction.</p><p>Readings below 50 indicate contraction in activity. The further the reading from 50, the greater the pace of growth or decline.</p><h2><strong>‘Encouraging Signs’ as Contraction Rate Slows </strong></h2><p>While Australia&#x27;s construction downturn continued in March, Ai Group’s Peter Burn said there are some encouraging signs that the overall rate of contraction has eased. </p><p>“Activity fell at a slower pace at the end of Q3 – as more planned projects moved through to construction – while the decline in new orders also moderated slightly,” Burn said.</p><p>House building activity contracted for an eighth consecutive month in March, recording 35.9 points. </p><p>Related: <a href="https://theurbandeveloper.com/articles/sydney-construction-drops-but-melbourne-peaks">Crane Spotting: Sydney Construction Falls While Melbourne Peaks</a></p><p>Across the major project areas, commercial construction recorded an eighth consecutive month of contraction amid ongoing demand for commercial building projects, down 0.8 points to 41.9.</p><p>Engineering construction stabilised in March, up 1.5 to 50.5 points. This follows four months of contraction and is in line with reports of some improvement in new project starts and an increase in tender opportunities.</p><p>“The contraction in Australian home building activity continues despite easing in recent months,” HIA economist Tom Devitt said. </p><p>“Falling house prices impeded market confidence and the unanticipated credit squeeze combined to accelerate a decline in the market in the second half of 2018.” </p><p>Related: <a href="https://theurbandeveloper.com/articles/gold-coast-cranes-rise-as-brisbane-sees-biggest-decline">Crane Spotting: Gold Coast Cranes Rise as Brisbane Sees Decline</a></p><p>Looking ahead, Burns says the construction industry is likely to remain in negative territory over coming months due to ongoing falls being recorded in new orders.</p><p>“On the positive side, there is clearly capacity to lift construction activity if policymakers are looking to stimulate the slowing economy,” Burns said.</p></div></div></div>

  Apartment building was the weakest performing area of activity, declining for twelve consecutive months.

7e22d149-a50c-4b16-a550-982502a7897e

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Mounting concern for the health and safety of construction workers has been voiced following <a href="https://theurbandeveloper.com/articles/coronavirus-multiplex-28bn-melbourne-square-construction-site">confirmed</a> cases of Coronavirus on project sites, with an industry association questioning why sites are still <a href="https://theurbandeveloper.com/articles/victoria-nsw-construction-sites-stay-open-shutdown">open</a> for business. </p><p>Prime minister Scott Morrison said he believed construction would remain as an <a href="https://theurbandeveloper.com/articles/victoria-nsw-construction-sites-stay-open-shutdown">essential </a>service when questioned if there was a phase it could be considered “non essential”, on Friday.</p><p>“I don&#x27;t believe so, no — it is essential,” Morrison said.  </p><p>Morrison said that social distancing could be “practiced on construction sites, whether they’re residential or commercial.” </p><p>“This keeps the economy going. It keeps people in work... [The] premiers and I have discussed this, this is an important part of the economy,” Morrison said on <a href="https://www.hit.com.au/fox">The Fox 101.9</a> interview.</p><p>“There will have to be some changes on sites, no doubt... Just like mining, and resources and manufacturing, and all of these important jobs. We’ve got to keep the economy running.” </p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/8fee9314-aa5a-4b2e-a6e0-de1bffeee55b.jpg" width="800"/></picture><div><span style="align-content:center;opacity:0.8">▲ The second known coronavirus case on a construction site was confirmed at Multiplex’s Melbourne Square last week. </span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>Builders Collective of Australia president Phil Dwyer said <a href="https://theurbandeveloper.com/articles/social-distancing-construction-sites">maintaining </a>social distancing on construction sites was virtually impossible, with the sector stuck between the “devil and the deep blue sea”.</p><p>“Because how on earth do you create social distancing on a building site? It’s very difficult in so many circumstances to maintain that 1.5 metre distance<a href="https://theurbandeveloper.com/articles/social-distancing-construction-sites"> away</a> from everyone else on a site.</p><p>“There’s more to this than just the economy, there’s the safety of all the people that work within the industry.” </p><p>Dwyer said the collective, which represents small- to-medium sized builders, had been calling for a fortnight shut down over the past few weeks, but with things changing so rapidly over the past few days, this now seems too short.</p><p>“We have this ‘she&#x27;ll be right attitude’, which we&#x27;ve had in the industry for far too long... And that culture flows through to the pandemic problems that we&#x27;ve got now.” </p><p>Dwyer said talk of a shut down had caused angst for a lot of people in the industry. </p><p>“Because if construction sites close down — what does happen to the economy? </p><p>“What happens to all those fellows who have mortgages? Because they wouldn&#x27;t get paid.”</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/0d3e083a-ac9c-4490-830b-66106581fd8b.jpg" width="800"/></picture><div><span style="align-content:center;opacity:0.8">▲ New South Wales announced on Friday it will fast-track the planning process for state significant developments, as workers are told to maintain social distancing measures.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>New South Wales and Melbourne City last week announced it would be <a href="https://theurbandeveloper.com/articles/construction-hours-coronavirus">extending</a> construction hours on sites. </p><p>New <a href="https://theurbandeveloper.com/articles/social-distancing-construction-sites">safety measures</a> from peak industry body Master Builders Association and the CFMEU have been introduced to keep sites safe in a bid to support the industry during the Covid-19 pandemic.</p><p>Master Builders Victoria took to social media to reaffirm it does not support a shutdown of the building and construction industry, insisting that the sector remains open under the guidance of chief medical officers at state and federal levels. </p><p>“Everyone should understand what a shutdown would mean; Building and construction is our state’s largest full-time employer, and our industry contributes over 45 per cent of Victoria’s tax revenue. </p><p>“Social distancing may be slowing work down, but <a href="https://theurbandeveloper.com/articles/coronavirus-multiplex-28bn-melbourne-square-construction-site">slower work</a> is better than no work.”</p><p>To date there have been <a href="https://theurbandeveloper.com/articles/coronavirus-multiplex-28bn-melbourne-square-construction-site">two confirmed</a> cases of Covid-19 on <a href="https://theurbandeveloper.com/articles/melbourne-construction-worker-coronavirus">construction</a> sites, both in Victoria.</p><p>Victorian premier Daniel Andrews has warned stage four coronavirus restrictions are looming in the state.</p></div></div></div></div></div>

Concern for the health and safety of construction workers has been voiced following confirmed cases of Coronavirus on construction project sites.

Construction Work Remains Stable Despite Lockdowns

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Construction held up stronger than expected in the September quarter with just a 0.3 per cent decline in output despite sites being shuttered in <a href="https://www.theurbandeveloper.com/articles/nsw-construction-covid-lockdown-vaccination">Sydney</a> and <a href="https://www.theurbandeveloper.com/articles/construction-sites-reopen-after-covid-shutdown?utm_source=TUD+-+Daily+Briefing&amp;utm_campaign=5eb22b78c9-EMAIL_CAMPAIGN_2021_08_11_01_49_COPY_01&amp;utm_medium=email&amp;utm_term=0_982c36d415-5eb22b78c9-">Melbourne</a> due to Delta Covid outbreaks and related lockdowns.</p><p>Data from the Australian Bureau of Statistics released on Wednesday showed the value of construction work done fell to $53.93 billion from June’s $54.1 billion, a much smaller decline than the 3 per cent drop forecast by economists.</p><p>Construction activity was suspended for two weeks due to the Delta outbreak —from mid-July for NSW and late September for Victoria—and has faced continued capacity and other strict social distancing measures since partially reopening.  </p><p>The fallout from rolling lockdowns was concentrated in the south-eastern corner of Australia with construction work done plunging by 8.1 per cent in NSW in the September quarter—the biggest decline in almost 21 years. </p><p>Work fell by an even sharper 15.5 per cent in the ACT to be at its lowest point in nine years. </p><p>Construction in Victoria surged by 5.8 per cent, the biggest lift in 3.5 years, with hours worked lifting by 0.4 per cent, defying expectations for a sharp decline as the state remained in lockdown for more than half of the quarter.</p><p>The construction boom also continued in Queensland with work done up 5.5 per cent in the quarter—the biggest lift in eight years.  </p><p>“Both NSW and the ACT experienced a construction shutdown, which was then followed by an extended period of workforce restrictions,” BIS Oxford Economics principal economist Nicholas Fearnley said.</p><p>“The construction shutdown in Victoria occurred at the end of September and carried over into early October, so the December quarter is likely to show most of the impact.”</p><p>Residential work done was varied with work done on houses up 3.3 per cent quarter-on-quarter to a record high, while work done on other dwellings fell 7.7 per cent quarter-on-quarter to a seven-year low.</p><p>The value of residential construction was unchanged at a total $18.8 billion for the three months, while engineering construction ticked up 0.4 per cent to $23.5 billion. </p><p>Public sector non-residential building was the weak spot during the quarter, dropping 9.4 per cent, but private sector non-residential building rose for a second consecutive quarter, by 1.4 per cent.</p><p>New work done declined by 1 per cent, while alterations and additions jumped 5.6 per cent. </p><p>The property industry is entering into a <a href="https://www.theurbandeveloper.com/articles/construction-industry-a-360bn-house-of-cards">period of great uncertainty</a>, with global supply chains under increasing pressure as economies reel back up from pandemic shutdowns, putting huge demand on <a href="https://www.theurbandeveloper.com/articles/bricks-construction-materials-supply-labour-shortages">materials</a> and <a href="https://www.theurbandeveloper.com/articles/construction-industry-steel-supply-shortage">shipping resources</a>.</p><p>CommSec senior economist Ryan Felsman said supply chain issues and rising labour cost pressures were likely to persist into 2022.</p><p>“Dwelling commencements could be nearing a peak as the HomeBuilder grant is pared back, property prices moderate and building costs surge,” Felsman said.</p><p>“Of course, growing supply chain snarls, elevated freight costs, lower product availability and labour shortages have all combined to constrain output.” </p><p>CommSec economists estimate that the number of residential dwelling commencements will ease from 181,000 in 2020 to 178,000 by the end of 2021, before falling to 159,000 in 2022 due to slower population growth and some overbuild supply.</p><p>While residential building is expected to slow in 2022, Corelogic’s latest construction outlook report suggests there is still a healthy pipeline of infrastructure-related projects. </p><p>In fact, there were 1714 new construction projects at the end of October 2021, up 10.7 per cent over the past three months. </p></div></div></div></div></div>

Construction held up stronger than expected in the September quarter with just a 0.3 per cent decline in output despite sites being shuttered...

Construction activity is expected to decline further in Australia during this year, following a 2.9 per cent drop in late 2019 according to Moody’s Investors Service and the Australian Bureau of Statistics.

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Construction activity is expected to decline further in Australia during this year, following a 2.9 per cent drop in late 2019 according to Moody’s Investors Service and the Australian Bureau of Statistics.</p><p>For the first time since 2017 the global construction industry outlook changed to negative on the back of coronavirus disruptions, slowing economic growth, and low oil prices according to Moody’s analysts. </p><p>This comes off the back of the latest ABS report for December which showed the value of new residential building work done fell 4.3 per cent while non-residential work seasonally-adjusted fell 3.6 per cent following a rise of 8.2 per cent in the September quarter.</p><p>The impacts of the summer bushfires were yet to have an impact on the quarterly results which were expected to hurt the start of 2020.</p><p>Revenue for most construction companies was expected to decline in 2020 as Covid-19 related disruptions affected the economy according to Moody’s.</p><p>The analysts said in Australia construction activity was expected to decline even though the government has not mandated work stoppages.</p><p>Related:<a href="https://theurbandeveloper.com/articles/construction-industry-further-stimulus-liquidated-damages-coronavirus"> Construction Industry Calls for Further Covid-19 Stimulus, Relief</a></p><h2><strong>Residential construction projects started in Australia</strong></h2></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/76d362de-055d-471a-9f71-eb76cb5b4c10.jpg" width="800"/></picture><div></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><sup>Source: Australian Bureau of Statistics</sup></p><p>“While we expect private construction activity to soften in the next 12 months, we expect the pipeline of infrastructure projects to proceed,” the report said.</p><p>“But we also expect continued delays in large infrastructure projects given supply chain disruptions and constraints on mobilising personnel at construction sites given social distancing laws and requirements for self-quarantine.”</p><p>They found energy and mining projects would fair better they were still likely to see delays and would have to deal with lower oil and commodity prices.</p><p>Contracting global economies would also affect future bidding opportunities and backlog growth with lockdown and social distancing raising the risk of project delays and cancellations.</p><p>However, Moody’s said in China construction activity had resumed on key infrastructure projects and the country was on track to recover much of lost domestic revenue.</p><p>This was aided by increased spending on infrastructure and strong order backlogs for companies. </p><p>Moody’s global outlook could change back to positive if rated companies revenue turned around in the next 12-18 months.</p></div></div></div></div></div>

Construction activity is expected to decline further in Australia during this year, following a 2.9 per cent drop in late 2019