Plan to grasp $62b opportunity 'hiding in plain sight'

Taxpayers and commuters could be the big winners if a plan succeeds to narrow a $62 billion productivity gap that’s opened over the past three decades. Construction labour productivity has fallen 33 per cent below other industries in Australia since 1990, offering industry, unions and government a “massive opportunity” for reform, big constructors say. A new national strategy, kicked off on Friday, aims to allow more modern methods of construction and improve productivity through new skills and better retention of workers. It comes amid an infrastructure building boom, including underground rail lines costing $34.5 billion in Melbourne and $55 billion in Sydney, and a desperate effort to build out of the national housing crisis. “Here is a $62 billion national opportunity hiding in plain sight,” Australian Constructors Association chief executive Jon Davies told AAP. “Whichever way you frame it, you could be saving billions of dollars in delivering infrastructure already in the pipeline or using those savings to deliver even more for the same price. “Or not delaying infrastructure because you haven’t got enough resources or that the price is too high.” The four-pronged strategy, stemming from a meeting of unions, industry and government in August and to evolve over the coming year, will initially focus on improvements in the transport infrastructure sector. As well as innovation and workforce changes, it seeks to share better data to measure productivity improvements and harmonise how governments seek project bids. Mr Davies said some contracts had specifications virtually down to the last nut and bolt, frustrating innovation. Bid teams in major construction firms are meanwhile tied up for a year or more on major projects “just to essentially give the illusion the government is getting value for money,” Mr Davies said. The overhaul of the CFMEU offered a chance to create a more sustainable and welcoming industry where workers had secure, well-paid jobs, taxpayers got value for money and contractors got an appropriate return, he said. “I’ve never seen an opportunity like we have today to fundamentally reshape the industry to create that better, more productive industry,” he said. NSW recently opened the door to 3D-printed homes, cutting expected construction time from 40 weeks to 16 weeks. Construction will begin within weeks on a social housing duplex in Dubbo, with its success to determine further rollout. The process produces significantly less waste while the concrete mix uses eco-friendly, high-recycled materials.