CCF WA NEWS

The State Government has announced legislative reforms that will replace the current complex and lengthy Project Bank Account (PBA) processes with simpler trust accounts that will provide the same protection to subcontractors.

The reforms will remove the heavy administrative burden of PBAs including the PBA Trust Deed Poll, PBA Agreement, and Deed of Release/Priority Deed Poll. The PBA will be replaced with a construction trust account, which can be any bank transaction or deposit account set up for the purpose.

It's proposed the deemed construction trust scheme will apply on State Government-led construction projects over $1.5 million, and will cover first-tier subcontractors/suppliers (the Government says cascading trusts, covering the entire subcontracting/supply chain, have proven burdensome and problematic when used in other states).

These appear to be welcome changes as PBAs have proved a nightmare to manage, and the trusts appear to be a simpler and equally effective mechanism. Member feedback is welcome.

New ‘head contractor statement’ provision

The State Government says this will strengthen the existing statutory declaration provisions on government projects. When lodging a payment claim, head contractors will be required to state:

• whether or not they have paid the full amount claimed by each subcontractor
• if not, details of the unpaid claim and why the full amount has not been paid.

Furthermore, the draft legislation then allows the Principal to withhold payments to the head contractor in some circumstances. We will be taking a closer look at these complex provisions and welcome all input.

Amendments to the Security of Payments Act (SOPA)

The Government says these are minor amendments to clarify several minor issues with the SOPA adjudication process, specifically in relation to serving of notices, adjudication fees and ‘pay when paid’ provisions in contracts. The Explanatory Memorandum (link below) has more details.

Have your say through CCF WA

The draft legislation and Explanatory Memorandum are available online here   

CCF WA will be making a submission by the deadline of November 14. Please email us with any input by COB Friday, November 7.

CCF WA will keep Members well informed as these reforms progress to implementation next year.

Just over four years ago, on 3 September 2021, the Certificate III qualifications in Civil Construction, Civil Construction Plant Operations and Trenchless Technology were gazetted as three-year apprenticeships in WA, replacing the previous two-year traineeship. One of our main ambitions for the new Civil Construction Apprenticeship was to encourage more school leavers and young people to take up civil construction as a trade career. We're encouraged to see that the latest National Centre for Vocational Education Research (NCVER) data indicates that this is happening.

Last year, 80 Western Australians aged 15-19 enrolled in a civil construction apprenticeship, a fourfold increase on the civil traineeship enrolments for that age group in 2019. Annual enrolments of under 25s jumped from 75 to 190 in the same period. Overall, under-20s jumped from 9% to 20% of all Cert III civil enrolments and under-25s from 33% to 46%.

Although over-25s now make up a smaller percentage of civil apprenticeship enrolments, their numbers have grown too (notwithstanding a 'bubble' driven by generous post-COVID Federal incentives).

Is the civil construction sector really such a laggard in productivity growth? Although overall construction productivity growth in Australia has undoubtedly been poor – with just 13% growth since 1994/95 compared to 49% for the whole economy – the headline figures hide a big disparity between building and civil construction.

Recent Federal Productivity Commission data (see chart below) shows that productivity in heavy and civil construction has achieved 44% growth over the past 30 years, only just below the economy-wide average.

While claims of a crisis in civil construction productivity may be exaggerated, there are certainly ample opportunities for improvement. Here’s a few things Governments can do.

Invest more in project planning and design
The #1 productivity killer on infrastructure projects is delays and rework, which most often result from insufficient planning and underdeveloped designs. Government agencies don't get the time and resources they need to properly plan and design projects prior to procurement. As a result, design and construct contracts are too often used as a risk transfer mechanism on projects with minimal opportunity for design innovation. 

Encourage innovation through competitive procurement
The ‘productivity crisis’ narrative is employed to support calls for the aggregation of government capital works into very large, long-term program alliances, which we are assured will turbocharge innovation and productivity. Sacrificing a diverse, competitive marketplace is not the way to increase productivity. A broad spread of head contracting opportunities is essential to ensure a competitive market and drive continued innovation and productivity growth.

Relax specifications and share the risk of innovation
Government agencies want innovation but are not prepared to accept performance liability, so they default back to inflexible specifications that stifle productivitity. True innovation is unleashed when agencies accept outcomes which challenge the norm and are prepared to share the risk. Today’s innovation becomes tomorrow’s norm.

Streamline project procurement
Government project EOIs and RFPs have become bloated with management plans, even though preferred proponents are invariably selected based on their price, experience and proposed methodology. Issues such as culture and diversity, safety management and stakeholder management can be managed more effectively and productively through collaboration post-award.

Slash excessive compliance obligations
Compliance for compliance’s sake is anti-productive. Governments should reassess all administrative and compliance requirements on projects and eliminate those that are not adding any value or improving outcomes.

Manage contracts collaboratively, not punitively
Inflexible and adversarial contract management results in contractors being unfairly punished despite delivering a quality outcome. Time and resources are too often wasted by a bureaucratic approach to claims and variations. Instead of being resolved quickly, reasonable claims are delayed by assessment processes which often seem designed to defer a decision as long as possible.

Balanced approach to workplace relations
Union-friendly, government-mandated pattern agreements on major civil infrastructure projects damage the healthy employer-employee relationships that characterise our sector and severely constrain employers’ ability to incentivise and reward productivity.

- Andy Graham, CCF WA CEO

The WA Earth Awards, proudly presented by PSC Insurance Brokers, is the Western Australian civil construction industry’s annual celebration of infrastructure project excellence –. We're very excited to have set a record of 25 incredible entries in 2025 across all categories. The projects nominated are: Enviro Infrastructure – Bridge 0629 Demolition and Associated Civil Works DJ MacCormick Contractors – Seabrooke Ave, Rockingham Sewer Pressure Main Diversion Tracc Civil – 125 Hay Street, East Perth Brown Civil – Lee Road - Gravity Sewer Main Extension DJ MacCormick Contractors – Barrambie Way, Ellenbrook New Sewer Pressure Main Tracc Civil – Glendalough Green DCI Group – East Intercourse Island CD2 Culvert Refurbishment Saltire Infrastructure – Caves Road Water Mains Upgrade Advanteering Civil Engineers – Scotch College Boatshed Construction Neo Civil – Kalbarri Disaster Recovery Works Georgiou Group – Bayswater Pressure Reduction Station BMR Piping & Civil – Kathleen Valley - 48km Pipeline for Liontown Rob Carr and NEWest Alliance – Anaconda Dr Sewer Pressure Main Realignment Tracc Civil – Austin Lakes Stage 19 BMD – Belmont Park Redevelopment Ertech – Kalgoorlie City Centre Transformation Tracc Civil – Cassia Estate Georgiou Group and Water Corporation – Alkimos Seawater Desalination Plant Enabling Works SRG Global – Pilgangoora Tailings Storage Facility & Associated Infrastructure Ertech – Spoilbank Marina Pk 4 - Landside Civils and Landscaping Fitzroy Bridge Alliance – New Brooking Channel Bridge Causeway Link Alliance – Boorloo Bridge NEWest Alliance – METRONET Thornlie-Cockburn Line Armadale Line Upgrade Alliance – METRONET Victoria Pack-Canning Level Crossing Removal Project South West Gateway Alliance (SWGA) – Wilman Wadandi Highway Join us to celebrate the winners and finalists at a gala dinner event on Friday, September 19 at Crown Perth's Grand Ballroom. There will be fine dining, networking, and entertainment from Perth band Atomic. Don't miss our biggest-ever Earth Awards – book your table now at the link below! Ticket sales close September 11. Event info   Tickets

The Women in Civil Awards recognise exceptional women for their leadership and commitment to excellence within the WA civil construction industry. This year, we introduced four new awards: Industry Leader; Emerging Leader; Trainee/Apprentice; and Corporate Leader.

The nominees for 2025 are...

Emerging Leader

• Mairead Breen, FSC Civils
• Aimee Crofton, Georgiou Group
• Leonie Cunningham, Georgiou Group
• Tracey Daly, APEX Utilities
• Jennifer Gaitan, BOS Civil
• Katelyn Gibson, Brooks Hire Service
• Emma Lauriston, BMD
• Tessa McGrath, DM Civil
• Hadiah Mojaddidi, Melchor
• Libby O'Brien, BMD
• Jordan Pedley, Barakee, MAX Plant
• Melinda Preece, BMD
• Meghan Roger, Western Geotechnical & Laboratory Services
• Maria Vermeulen, CPB Contractors
• Natasha Veurink, Tracc Civil

Industry Leader

• Kate Chapman, CPB Contractors
• Nancy Chen, Tracc Civil
• Nayelly Garcia, CPB Contractors
• Kim Haynes, SRG Global Infrastructure
• Kelly Hillary, SJ Traffic Management
• Jutta Klocke, Geoquest Australia
• Anna Massey, BMD
• Emma Moebius, BMD
• Hilary Morup, Mallard Contracting
• Barbara Tighe, CPB Contractors
• Elizabeth Ward, CPB Contractors

Trainee/Apprentice

• Elise Ewen, Georgiou Group
• Abbey-Lee Johnson, Apex Utilities
• Deborah Williams, Motivation Foundation
• Brianna Fretwell, Laing O’Rourke

Corporate Leader

• FSC Civils
• BMD

The winners will be presented at the 2025 Women in Civil Lunch by Minister for Women the Hon. Simone McGurk MLA.

Tickets are on sale until 5:30pm Wednesday, 9 July.

Western Australia’s peak civil construction industry group says planned major road projects must be brought forward to ensure WA retains the skilled workforce needed for an expected surge of infrastructure construction activity later this decade.

Civil Contractors Federation WA CEO Andy Graham said the recent State Budget included many road projects scheduled to get underway around 2028 (see list below). Construction works on these projects will coincide with a forecast rise in public and private sector construction activity including Westport and Western Trade Coast enabling works (road and rail), Perth Airport runway and redevelopment, Clean Energy Link projects, Defence upgrades at Garden Island and Henderson, and development of Strategic Industrial Areas.

Mr Graham said bringing some road projects forward would help smooth the infrastructure pipeline and ensure WA retained workforce capability.

“We’re optimistic about the long-term pipeline of work but the next couple of years are a concern,” Mr Graham said.

“With the METRONET program wrapping up, more and more civil contractors and subcontractors are geared up and ready for work, but they can see very few new tendering opportunities in the next 18-24 months.

“The State Budget forecasts show Main Roads will spend about a billion dollars per annum statewide on road construction in 2027/28 and 2028/29, which is back to the levels of about ten years ago and a massive drop in real terms.

“It makes sense to bring some road projects forward. Otherwise, we’ll pay the price in skills shortages a few years from now. Civil engineers, supervisors and others will go east where the work is.

“We can’t expect to retain workforce capability if WA is pushing the pause button on new projects while other states are pushing ahead with big infrastructure programs.”

Mr Graham said CCF WA also urged the Federal Government to support any State Government initiative to bring forward road projects.

“Federal funding support will be essential,” he said. “And with WA currently set to receive only 5% of all Federal infrastructure funding from 2027 to 2029, there is undoubtedly plenty of scope for the Federal Government to step up with a fairer deal.”

Road projects that could be brought forward include:

Kwinana Freeway Widening ($700 million). Federal funding (50%) confirmed. New State Budget includes $460M to widen between Roe Highway and Mortimer Road, commencing 2027.

Tonkin Highway and Kelvin Road Grade Separation ($122 million). Funding and delivery timeline on this project not clear as State Budget aggregates Tonkin Highway improvement. Works originally scheduled to commence in 2024.

Great Northern Highway Bindoon Bypass ($275 million). Fully funded since 2019; delivery deferred as part of 2021 pipeline smoothing process. State Budget shows major works funded from 2027/28. May need additional Federal funding.

Canning Bridge Bus Interchange ($200 million). Federal funding confirmed in 2023. State Budget includes $140 million for construction, likely commencing early 2028. May need additional Federal funding.

Reid Highway and Erindale Road Grade Separation ($450 million). Federal funding (50%) recently confirmed. No significant State Budget funding for construction works until 2028/29.

Nicholson Road and Garden Street Grade Separation ($80 million).  Was scheduled to commence early 2026 but new State Budget has no significant funding until 2028/29. Likely to need additional Federal funding.

West Swan and Reid Highway Interchange ($175 million). Federal funding (50%) confirmed in 2020. No significant State Budget funding for construction works until 2028/29. Likely to need additional Federal funding.

Roe Hwy/Great Eastern Highway Bypass Interchanges ($368.5 million): Design of interchanges at Roe/GEH Bypass and Abernethy/GEH Bypass is completed, but more Federal funding is needed for construction.

Pinjarra Heavy Haulage Deviation ($250 million). Federal Government withdrew funding support in November 2023. No significant works funding in this Budget cycle.

Federal funding of major transport projects in Western Australia is set to fall to less than one-sixth of current levels over the next four years.

CCF WA’s analysis of the Federal Government’s Infrastructure Investment Program shows WA will receive just $688.4 million in 2028/29 – less than 5% of the national total.

Confirmation of 50% funding for the Leach Highway/Manning Rd intersection upgrade and the Kwinana Freeway widening is welcome. It's been reported the Budget includes a substantial allocation for “decisions taken but not yet announced” so in the lead up to the Federal election we may also see a commitment to match the State Government’s $225 million commitment to fixing the intersection of Reid Highway and Erindale Road.

Disappointingly, there are no new major commitments to fixing WA’s regional roads.

The Federal Budget does include $1 billion in defence spending brought forward and an additional $10.6 billion in total over the next four years. Some of that is expected to go towards WA infrastructure upgrades needed for the AUKUS submarine deal – CCF WA is seeking more information on the details.

Civil apprentices miss out again

Our sector has again been dudded with civil construction apprentices not eligible for a $10,000 bonus (increased from $5000) while employers of civil apprentices will miss out on a $5000 Priority Hiring Incentive.

Civil Contractors Federation National CEO Nicholas Proud called for recognition and funding of the civil construction sector as a priority workforce, essential to unlocking both infrastructure investment and national housing targets.

“Until governments invest in the men and women who deliver roads, water, power, and subdivisions, the housing pipeline will remain stalled,” Mr Proud said.

“You cannot invest a dollar in housing until you invest a dollar in civil. Australia’s housing challenge cannot be solved without civil construction.”

What else is in the Federal Budget for businesses?

The Business Council of Australia says the 2025 Federal Budget should have done much more for business, including positive action to incentivise state and territories to undertake economic reform and improve productivity.

About 1 million small businesses (defined as those with annual electricity consumption of less than 50MWh) will receive a $150 electricity bill rebate.

The $20,000 instant asset write-off scheme will be cut to $1,000 from July 1.

Peak business groups criticised the Government’s decision to ban the use of non-compete clauses for employees earning less than $175,000.

CCI WA’s Aaron Morey said: “This measure will make it harder for businesses to protect their legitimate interests by ensuring workers do not unfairly use insider knowledge to help a new employer.”

Western Australia’s peak civil construction industry body welcomes the Federal Government’s renewed commitment to fair and reasonable security of payments protections for subcontractors.

Civil Contractors Federation Western Australia CEO Andy Graham said today's Federal response to the 2018 Murray Review reinforces that security of payments protections are necessary in the construction sector. “As the Review stated and the response acknowledges, there is an inherent power imbalance in our industry between extremely large head contractors and small subcontractors,” Mr Graham said. “That’s why security of payment legislation exists in all states and territories.

"Here in WA, our State Government responded proactively to the Murray Review, implementing new security of payments legislation that aims to improve protections and provide more certainty for head contractors, subcontractors and suppliers.

“CCF has a unique perspective on this issue as our membership includes some of the largest head contractors and smallest subcontractors. More than most groups, we know how important it is to get the balance right and ensure that subcontractors are fairly paid, without tying all businesses up in complex and sometimes ineffective red tape.

“We share the Federal Government’s concern that project bank accounts and statutory trusts impose a huge administrative burden on all parties, while not really addressing key issues such as disagreements over contractual entitlement.

“CCF looks forward to further consultation with the Federal Government on this important issue, led by CCF National CEO Nicholas Proud, our representative on the National Construction Industry Forum.”

The exclusion of civil construction trades from a new $10,000 apprentice incentive shows the Federal Government still hasn’t grasped the need for more skilled workers to build housing enabling infrastructure, says the Civil Contractors Federation WA.

CCF WA CEO Andy Graham said apprentice civil plant operators and pipelayers deserved the same support from the new Key Apprentices Program as apprentices in the housing trades.

“While the Federal Government continues to announce generous funding for housing-enabling infrastructure, it has ignored the apprentices in the trades that actually deliver it,” Mr Graham said.

“Without housing lots, there’s no houses, and it’s critical we attract and retain the skilled tradespeople we need to build those housing lots.

“Do the Feds understand that building subdivisions requires a highly skilled workforce? Don’t they get that the apprentice plant operators and pipelayers building subdivisions are every bit as important as the bricklayers and carpenters building houses?

“If we sound frustrated, it’s because the CCF has been telling the Federal Government this for 15 years. Yet every time a new Federal apprenticeship incentive is announced, civil construction apprentices miss out.

“This month alone we’ve been snubbed twice – firstly excluded from the new GTO Reimbursement Program, and now this apprentice completion incentive.

Mr Graham said the consistent lack of Federal support for civil trades was in stark contrast to the strong support shown by the Western Australian Government.

“Our State Government consistently provides equal support for civil construction skills. It understands that you can't build houses without housing lots. For example, we’ve just seen excavator operators and pipelayers included as eligible for the $10,000 relocation bonus, aimed at encouraging interstate migration.

Mr Graham said the State Government was also a strong supporter of civil construction skills through its apprenticeship funding programs – unlike the Federal Government, which refuses all civil construction apprentices, including apprentice plant operators, access to its Australian Apprenticeship Incentive System funding.

CCF National CEO Nicholas Proud said the Federal Government had to start prioritising civil trades or risk further delays in addressing Australia’s housing and infrastructure challenges.

“We are building 60,000 fewer homes than we were in 2021, so it is baffling that the Government has chosen to defer action on civil trades,” Mr Proud said.

“Civil construction is the foundation of every housing project, enabling essential services like subdivisions, roads, sewerage, and water. Without a skilled civil workforce, the housing sector simply cannot function. The longer we delay investing in these trades, the further we fall behind on delivering the infrastructure and housing Australians desperately need.

“Unless the Government is intending to build homes without cleared lots, connective roads and utilities, we are not going to see any progress on housing until the Government prioritises the civil skills that unlock new homes.”

The Civil Contractors Federation (CCF) welcomes the Government’s commitment to boosting Vocational Education Training (VET) and addressing skills shortages through the Free TAFE Bill 2024 but cautions that private RTOs – which play a crucial role in civil construction training – should not be disadvantaged.

CCF warns that a focus on TAFEs, to the exclusion of other VET providers, could exacerbate issues such as the lack of recognition and support for civil construction skills and the unique needs of contractors delivering housing-and energy enabling infrastructure.

CCF CEO Nicholas Proud said private Registered Training Organisations (RTOs) were often the only viable option for contractors seeking skilled workers to meet the demands of vital infrastructure projects.

"We urge the Commonwealth to broaden its focus and take further steps to support RTOs that specialise in civil skills training," Mr Proud said.

"Relying solely on TAFE risks overlooking the specific, industry-led training solutions that private providers offer, which are crucial for equipping workers with the specialised skills needed in our sector.”

In response to these challenges, the CCF is also calling on the Commonwealth Government to formally recognise the vital role of apprenticeships and trades within the civil sector, by funding civil construction apprenticeships through the Australian Apprenticeships Incentive System

"As a country we are waking up to the urgent skills shortfalls we need to address to deliver the housing-enabling infrastructure and renewable energy projects Australia urgently needs. We need to focus every strategy and dollar to tackle this crisis.

“This means not only prioritising support for the private RTOs that are training the skilled workforce to make it happen, but also addressing the current unfair funding policies that severely disadvantage civil construction apprentices compared to nearly all other construction trades

Without equal support for private sector training providers, and fair funding for civil construction apprentices, we risk falling short on the infrastructure and energy goals that underpin our nation’s future."

The CCF remains committed to working alongside the Government, training providers, and other industry stakeholders to develop a robust skills pipeline that supports the nation’s infrastructure goals.