While the recent announcement of a $10-billion housing fund by the Australian government is a positive move to alleviate the housing crisis, it’s also important to develop sustainable and resilient infrastructure to effectively support population growth, says CJC Management, a leader and advisor in the engineering and construction industry.

According to the Australian Bureau of Statistics, Australia’s population has increased by 563,200 people in just one year, underscoring the urgent need for robust infrastructure development to keep pace with this growth.[1]

The Intergenerational Report 2023, recently released by the Treasurer of Australia outlines the critical role of infrastructure in supporting socio-economic development and enabling economic and productivity growth. It highlights the continued and increasing investment in infrastructure to help reduce congestion and ensure the smooth, efficient movement of goods and people nationally and internationally. These measures are instrumental in enhancing connectivity, and providing access to employment, healthcare, education, and community activities.[2]

“The $10-billion housing fund and the Federal Government’s commitment to transport infrastructure expenditure give us a framework upon which we can construct a strong and resilient infrastructure for Australia,” said CJC Management group managing director Colin Calder. “This is a golden era for collaboration across sectors to focus on creating comprehensive environments where communities not only exist but thrive.”

Based on the Intergenerational Report’s projections, investment is required in diverse sectors such as utilities, telecommunications, digital infrastructure, port developments, and social infrastructure.

“As the report suggests, a strategic review of the Infrastructure Investment Program and enhanced planning and coordination with states and territories are essential to improve the quality and sustainability of long-term infrastructure spending,” says Calder.

Rethinking risk management for project delivery

The Australian engineering and construction industry is on the brink of change, especially in managing project delivery risks. Project owners and contractors are aiming for enhanced collaboration and open communication, while fixed-price contracts will be replaced with more flexible and collaborative agreements that focus on cost and time assessments.

To adapt to this changing landscape, organisations will need to establish robust governance, incorporate thorough risk management practices, and employ advanced digital systems for accurate reporting and forecasting, Calder observed. “Early engagement with contractors and the adoption of adaptable, performance-incentivised delivery models will be crucial for navigating this emerging industry scenario efficiently.”

Enhancing project success

Escalated material costs, labour issues, and supply chain disruptions are some of the key factors contributing to poor project performance in the construction industry. A KPMG report reveals that only half of the projects are completed on time, increasing the pressure on contractors worldwide.

However, there’s substantial opportunity for improvement: For instance, organisations handling major projects should prioritise proper delivery and procurement models, precise cost estimates, and realistic schedules; focus on comprehensive risk management, cost analysis, fair risk distribution, efficient project management offices, solid governance, and integrated project controls; and utilise data analytics and technology to boost project performance and productivity.[3]

Digital technology and innovation reviving the industry

As the construction industry increasingly adopts diverse technologies including mobile platforms, AI, and robotic process automation, there’s not only a notable surge in modular or offsite manufacturing, but also a higher scope for enhanced efficiency and overall performance in the industry. Trends indicate that the sector is turning its attention towards project management information systems, integrated project controls, building information models, and sophisticated data analytics to boost return on investment in construction projects.

ESG and diversity paving the way

ESG considerations are emerging as a central focus not just in Australia, but globally in the infrastructure and construction sectors. Organisations are actively urging the industry to embrace more environmentally sustainable practices. “This push is resulting in a significant shift with industry leaders establishing ambitious targets for reducing carbon footprints, waste, and pollution, and heightening biodiversity awareness,” Calder notes.

The industry is also focussing on enhancing diversity, equity, and inclusion. “We are beginning to witness the industry not just talk about, but also act upon the belief that a diverse workforce is pivotal for enhancing project resilience. There is still a long way to go but, this industry approach effectively tackles disruption, brings fresh skills and perspectives to the forefront, and adeptly handles challenges tied to scheduling, remote working, and job site travel. To ensure continued progress, the industry needs to hold firm in its commitment to fostering inclusivity, investing in training and development, and implementing policies that support a diverse and equitable workplace,” Calder says.

“It's vital for the entire industry to look beyond traditional construction. The inclusion of digital innovation, environmental sustainability, and workforce diversity is essential for the journey ahead. Together with other industry leaders, CJC Management is ready to share insights and collaborate extensively to ensure that our collective infrastructure robustly meets future demands and challenges particularly as our population grows.”

Image: https://www.future.transport.nsw.gov.au/future-transport-plans/greater-sydney-services-and-infrastructure-plan

References:

[1] https://www.abs.gov.au/statistics/people/population/national-state-and-territory-population/latest-release

[2] https://treasury.gov.au/sites/default/files/2023-08/p2023-435150.pdf

[3] https://kpmg.com/au/en/home/insights/2023/06/global-construction-survey-trends-2023.html

Branko Miletic

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