30% of the Australian construction industries efforts are wasted each year, reducing this wastage by just one third through implementing productivity recommendations could turn the tide, increasing non-residential and residential building output by over $10 billion per year!
So how can Australia raise construction productivity? Well, the Australian Construction Industry Forum (ACIF) has 3 great ideas.
1. Set-up an Independent Procurement Centre of Excellence
Government needs to take charge if the industry is to see real and permanent construction productivity improvement. Setting up an Independent Procurement Centre of Excellence is a first step.
Infrastructure requires huge amounts of taxpayers’ money. A procurement process is integral to making sure the public gets value for money out of this process.
There are so many opportunities for business to converse with government and discuss solutions, as well as share expertise, which can lead to increased value for money and productivity from start-to-finish of the procurement process.
ACIF is continuing the work of the Australasian Procurement and Construction Council (APCC) by suggesting a whole government approach supporting the creation of the Centre of Excellence, believing its existence would be best to avoid any deficiencies in procurements practices and proficiencies into the future.
The Centre would:
- Foster relations between business and government and promote best practice in procurement throughout Australia.
- Expand APCC’s role and government engagement to keep working towards achieving efficiencies in procurement across jurisdictions.
2. Procurement and Contracting Standardisation Country-Wide
Increased autonomy due to devolving agency responsibility has led to bespoke approaches to project contracting, initiation and definition with the consequence of more regulatory paperwork and bureaucracy to navigate, as well as decreased trust and more wastage.
ACIF recommends the Centre of Excellence come up with a consistent public sector framework of capital works procurement practices, delivery strategies, contract conditions and policies to establish a new ‘leading practice’ approach to be implemented and used by all government bodies.
3. Building Information Modelling should be mandated by 2020
Building Information and Modelling (BIM) presents great opportunities for Australian construction businesses through improved collaboration and co-ordination between the supply-chain and construction participants.
The uptake in BIM is slow due to industry trepidation and the significant investment costs and up-skilling involved, as well as, the need for developing regulatory frameworks and standards, taking into account work culture changes.
As the industry is hesitant to adopt BIM on a massive scale as of yet, its imperative government takes action to help move the sector along into the future.
ACIF believes the Australian government should mandate using BIM on federal and state government construction projects by 2020, and government infrastructure works by 2023, overseen and handled by the Centre of Excellence.
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