A major construction projects report update released today, commissioned by the Queensland Major Contractors Association (QMCA) and Construction Skills Queensland (CSQ) and prepared by BIS Shrapnel, confirms that engineering construction work in Queensland continues a decline that commenced following the 2012/2013 peak of the resources and engineering construction boom.
The report updates the QMCA and CSQ’s Queensland Major Projects Report (MPR), released in March 2016, which revealed that major project activity in the State was already in sharp decline having fallen by 52% during 2015/16 when compared with the previous year.
The latest update takes into account data released by the Australian Bureau of Statistics for the March quarter 2016 (latest available), which discloses a 40% decline compared to the corresponding quarter in 2015, and highlighting Queensland as the worst performing of all Australian states and territories during that time.
QMCA President Iain Ward, said that the MPR Update’s findings were disappointing but expected and a further wake up call for the government.
“When we released the 2016 Major Projects Report in March this year we made the point that, while there are significant opportunities in Queensland’s major projects pipeline, much of the work remains unfunded. We also called for greater government engagement with the industry to develop a more effective approach to the development of projects”.
“A report on mega-projects released late last year by the Australian Constructors Association concluded that large projects were costing taxpayers and the industry at least 20% more than they should. The problems have been recognised in the UK where the government has partnered with industry to develop a more cooperative approach to the development and delivery of mega-projects that is already achieving significant cost savings and releasing funding for other infrastructure projects”.
“Whilst the industry has enjoyed a constructive working relationship with the Palaszczuk government, we believe there is room for much more to be done. A closer partnership between government and industry will improve confidence in the sector and achieve significant flow-on benefits for the whole construction supply chain. This includes the many small businesses that subcontract to major contractors as well as construction product manufacturers and service organisations” Mr Ward said.