One of the most recent casualties of Australia’s construction crisis is Perth-based Pindan Group—the head contractor for a number of WA government projects—which was placed in external administration in May owing creditors $80 million.
Consult Australia chief executive Nicola Grayson, a joint signatory, said the response from the industry demonstrated the seriousness of the failures in the construction sector that needed to be addressed urgently.
“We all agree on the urgent need for reforms that drive an improved industry culture, create increased capacity and capability, and ensure that project commercial frameworks are equitable and align the interests of all parties,” Grayson said.
“Reform of the magnitude required will only happen through greater collaboration across all levels of government and in consultation with industry.
“In particular, the federal government, as a direct procurer of major projects and as a significant source of funding for jurisdictionally led projects, can play a major role in resolving these issues and supporting the sustainability of the sector and its supply chain.”
In their letter to the inquiry the construction industry leaders said while the Covid-19 pandemic had exacerbated the existing challenges, it also offered an opportunity to address the “sustainability crisis” and ensure the industry can deliver the record-levels of infrastructure in the pipeline.
Committee chair of the House of Representatives Standing Committee on Infrastructure, Transport and Cities John Alexander said it was an important inquiry as the country focused on its economic recovery.
“The committee will examine challenges and opportunities to enhance Australia’s sovereign industry capability, including for Australian-owned businesses,” he said.
“We are keen to hear about what is working well here and internationally, opportunities to improve procurement practices, and how governments at all levels can better cooperate on infrastructure procurement.”
The inquiry is open for submissions.
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