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Construction Contracts Changes

Construction Contracts Changes

The success of the Federal Government’s $10-billion housing fund depends on also developing sustainable and resilient infrastructure to support population growth.

Engineering firm, CJC Management, managing director, Colin Calder, says while infrastructure spending has increased, at the same time Australia’s population has soared by more than 500,000 people.

He says it is the only way that communities can not only exist but thrive and that to support the additional housing, further money needs to be committed to utilities, telecommunications, digital infrastructure, port developments, and social infrastructure.

Calder predicts changes ahead in way that the engineering and construction industry work on big projects and says they are moving away from fixed-price contracts to more flexible agreements that focus on cost and time assessments.

Many Australian construction companies collapsed during Covid when the costs of materials soared and workers were hard to find, but they were locked into fixed-price contracts which had not predicted the massive increases.

Calder says a KPMG report shows it was a worldwide issue with only half of projects completed on time.

“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.”


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