MEDIA RELEASE 15 June 2019
FOR IMMEDIATE RELEASE
10 ‘NOW’ S.A. PROJECTS TO REVERSE SLOW PACE OF PROMISED GOVERNMENT TENDERS ON METRO & REGIONAL CIVIL WORKS The Civil Contractors Federation – South Australia (CCF(SA) has today outlined its funding and project concerns ahead of next Tuesday’s SA Budget – and backed that up by naming 10 ”action now’ projects to stimulate the sector. Details and commentary by CCF (SA) Chief Executive, Mr Phil Sutherland, are as follows: COMMENTARY: Public investment in transport and other infrastructure is a proven job creator and economic stimulator. When the economic multiplier effect is triggered, it delivers positive social and economic outcomes well beyond the project site. The SA economy is slowing and major infrastructure projects are entering their final stages. Job losses are inevitable. While there appears to be up to $14 billion in projects earmarked for funding (2018 SA and Federal Government budgets) the major construction agency of the SA Government appears to have capacity and expertise constraints that have resulted in projects coming to the market at a very slow rate. Of the 30 odd projects funded in the 2018 State/Federal Budgets, only a handful were shovel ready and only a few have reached the construction phase. Not one new road has commenced construction during the life of this State Government. An industry/government task force needs to be established to consider methods of accelerating bringing projects to the market so that civil construction companies can tender for the work and construction can occur. Note there are long lead times in the planning and design phase of most civil construction and other projects. This can be two or more years. Government can create more projects for more companies (of all sizes) by disaggregating potentially large projects. Government must resist the temptation to bundle work into larger and larger contracts, making these attractive to very large interstate and overseas contractors. TEN “ACTION NOW” PROJECT OPPORTUNITIES: State-wide road maintenance program, on the basis there is an estimated road maintenance backlog of up to $800 million.
For further Information contact: Phil Sutherland - CCF SA Chief Executive Officer M 0402 440 339 P (08) 8111 8000 E psutherland@ccfsa.com.au The CCF SA: the peak industry association for the civil contracting sector l influencing government policy and regulation l lobbying and advocating for civil contracting companies l maintaining networks of influential government, media and community contacts l providing information of relevance to civil contracting companies and the community l facilitating opportunities for civil contracting companies to be consulted on matters of importance l hosting social and networking opportunities for civil contractors l promoting the civil contracting sector l delivering civil training programs and courses l providing technical and specialist advisory services to civil contractors l progressing strategies designed to achieve and maintain a safe, sustainable and profitable civil contracting sector.