CCA
Construction Contractors Association of Western Australia
SUBMISSION TO INFRASTRUCTURE AUSTRALIA
AUSTRALIAN INFRASTRUCTURE AUDIT
Image: Gateway WA
AUGUST 2015
ABOUT US
The Construction Contractors Association of Western Australia (CCA) is the peak industry body for the major building and civil construction contractors in Western Australia.
Through its members, the Association is responsible for some $10 Billion per year in Western Australian turnover, undertaking over half of the major building and infrastructure work performed in Western Australia.
Members of CCA are contractors with national operations and with annual turnovers typically exceeding $400 million.
The CCA's prime purpose is to represent the construction industry to governments, our major clients and relevant stakeholders.
CCA members are:
BGC Contracting
Broad Group Holdings (WA) Pty Ltd
Brookfield Multiplex Australasia
Clough
Downer EDI Works Pty Ltd
Georgiou
Laing O’Rourke
Leighton Contractors Pty Limited
Lendlease
John Holland
McConnell Dowell Constructors (Aust) Pty Ltd
Probuild
UGL
Gateway WA, shown on the cover of this submission, is an example of the transformative infrastructure projects being undertaken by CCA members.
CCA FEEDBACK ON FINDINGS
Finding 11. Infrastructure decision making must place a high priority on productivity growth. This can only be achieved through efficient management of existing infrastructure, rigorous and disciplined evaluation of investment initiatives, and efficient delivery of new projects.
CCA strongly supports priority being given to investing in infrastructure that improves productivity, promotes economic growth and stimulates investment. CCA supports more time being spent in planning and scoping a project as well as sufficient time being given to allow quality bids to be made.
Finding 17. Sound infrastructure planning requires an ongoing commitment to engage communities throughout the decision-making process. This improves the likelihood of meeting community needs and expectations, and reduces objections to development.
CCA believes that industry also needs to be consulted in planning for infrastructure about the best ways of providing value for money, opportunities for value capture and how innovation can be encouraged in provision of infrastructure.
Finding 18. Improvements in long-term infrastructure planning, project appraisal and project selection (including the consistent use and transparent reporting of cost−benefit analyses) are necessary if Australians’ expectations are to be realised.
CCA agrees improvements in long-term infrastructure planning, project appraisal and project selection are necessary and these can be enhanced by having ongoing, structured consultation with industry.
Finding 20.There is a need for more detailed information on infrastructure performance to be assembled consistently, at a national level, and for this information to be reported publicly to assist the forecasting of benefits and costs when planning infrastructure.
CCA supports gathering more detailed information on both project procurement and infrastructure performance to be assembled consistently, at a national level, and for this information to be reported publicly to assist the assessment of alternative technologies and techniques for providing infrastructure.
Finding 29. Government funding alone is unlikely to be sufficient to provide the infrastructure that Australia requires. Maintaining or strengthening conditions to facilitate private sector investment in and operation of Australia’s infrastructure networks is fundamentally important.
CCA agrees that government funding alone is unlikely to be sufficient to provide the infrastructure that Australia requires.
CCA supports strengthening conditions to facilitate private sector investment in construction and operation of Australia’s infrastructure networks.
Finding 32. Skills shortages contribute to cost increases for infrastructure construction. Development of an infrastructure pipeline presents an opportunity to develop a better skilled workforce and to minimise skills shortages in the future.
CCA agrees that development of an infrastructure pipeline presents an opportunity to reduce costs, improve project outcomes, maintain Australian capability, develop both a safer and better skilled workforce and to minimise skills shortages in the future.
Finding 33. Australia would benefit from a strong and consistent pipeline of future infrastructure projects. Without this, there is uncertainty and less likelihood of a well-resourced environment for project procurement. The effectiveness and cost of current procurement processes in some jurisdictions are also an ongoing concern.
CCA believes that Australia would benefit from a strong and consistent pipeline of future infrastructure projects. CCA agrees there is currently uncertainty and potential loss of capability for project procurement. The appropriateness and cost of current procurement processes in some jurisdictions is also concerning.
Finding 34. Governments, industry and the communityshould ensure there is a continuous focus onreducing construction costs, and promoting modern building practices.
CCA agree much more can be done by improving procurement processes and greater use of alliancing and Early Contractor Involvement to reduce construction costs, and encourage innovation. The Construction Sector is very keen to explore opportunities to innovate in building practices and forms of contracting as well as improving safety and wellbeing for those working in the sector.
The CCA support the development of an industry/government group similar to Infrastructure New South Wales and Infrastructure Victoria in Western Australia to assist implement the findings of the Australian Infrastructure Audit Report, promote innovation and to have input into the funding and prioritisation of future infrastructure investment for Western Australia.
CCA FEEDBACK ON CHALLENGES
Productivity – national productivity levels need to be increased through regular strategic investment in economic infrastructure
CCA supports a pipeline of projects with regular, planned investment in economic infrastructure that improves productivity and competitiveness. CCA supports linked major projects such as Gateway WA rather than small incremental projects.
Population – huge population growth, particularly in our major cities, will necessitate the delivery of new and renewed infrastructure
Perth and Western Australia are expected to be the fastest growing parts of Australia and will create huge pressures for infrastructure investment as well as creating economic opportunities. CCA supports priority for investment being given to high growth, high opportunity locations that will strongly contribute to the national economy.
Connectivity – modernised infrastructure networks and gateways are needed to link businesses, boost trade and improve access to workplaces
Western Australia is a very globally focussed economy. Connectivity is essential for productivity and international competitiveness. CCA supports connectivity between economic hubs having a priority over connectivity between population centres. Freight should be given a much higher weighting than private vehicle movement in assessing project priorities.
Funding – reforms are essential to increase the total pool of funds made available for infrastructure, especially by facilitating private investment
CCA supports a pipeline of projects, protocols for unsolicited bids and innovation in contracting to facilitate private sector investment.
Competitive Markets – national infrastructure markets must operate to improve investment decisions and give consumers choice
CCA supports competitive markets but accepts that some areas which involve public good, such as public transport, may need to continue to be subsidised and operate outside of a competitive environment.
Governance – integrated planning, transparent project selection, and stakeholder consultation are essential, and all have to improve
CCA believes that improvements can be made to integrated planning and contracting. The increased use of Early Contractor Involvement and Alliancing are also essential to provide for innovation and improved project outcomes. CCA is establishing Infrastructure WA to act as a link between the private sector and the Western Australian Government to promote improved governance.
Sustainability and Resilience – we will need to cut environmental impacts and improve resilience, using new technology to run our infrastructure better
Infrastructure in Western Australia has typically had poor resilience so that a burst water main on a freeway or a flooding of a section of road has meant chaos. A higher value needs to be placed on having resilient infrastructure and use of technology such as intelligent transport systems. The rate of growth in Western Australia will mean that “shoehorning” or optimising capacity through technology will not ameliorate the need for substantial additional infrastructure investment.
Regional – we must see how infrastructure improvements can enhance local service standards and facilitate rural and regional growth
The massive growth of the resources sector in Western Australia has enhanced regional capability, service standards and amenity as well as promoted regional growth. Perth will continue to dominate Western Australia’s population and is expected to continue to represent 75 per cent of the State’s population.
Indigenous – across the nation we can do more to achieve equity and close the infrastructure gap faced by remote communities
Infrastructure projects have provided excellent opportunities for the development of indigenous businesses as well as individual skills development. CCA supports major projects supporting indigenous employment and opportunities for indigenous business.
Best Practice – a uniting theme is how to pursue best practice procurement and delivery, and encourage whole-of-life asset management.
CCA believes that improved procurement processes will improve productivity, safety and project outcomes and sees this as a role of Infrastructure WA.
CCA welcomes the opportunity to provide feedback on the Australian Infrastructure Audit and is happy to engage with Infrastructure Australia to expand on this submission.
Rob Wallwork
CCA President
August 13, 2015
Contact: PO Box 3143, EAST PERTH WA 6892,