CCF WA NEWS

‘Hard’ border closure, regional travel restrictions

The State Government has tightened border controls from 11.59PM Sunday. Exemptions include:

• Specialists required for industry or business continuity and maintenance of competitive operation where the service is time-critical
• Persons responsible for critical maintenance or repair of infrastructure

Click here to download the form 'WA Entry - Request for Approval as an Exempt Traveller'

If you have any issues with key specialist employees being denied entry, threatening the continuity of a project, please let me know.

The State Government has also imposed travel restrictions between regions of WA from Midnight tomorrow night. People travelling to and from their workplace, or transporting freight, are exempt. Employees travelling between regions should be provided with documentary proof that they are travelling for work purposes, e.g.

• A signed letter on company letterhead stating they are a contractor or employee, and the reason they are required to travel between regions, including name and location of project/worksite
• A contact number for a person at the company who can verify this information
• Photo ID

The restriction applies to travel between these regions: Perth/Peel (treated as one region); South West; Great Southern; Goldfields-Esperance; Mid-West; Wheatbelt; Gascoyne; and Pilbara

NOTE: Access to the Kimberley (including the entire Shire of Ngaanyatjarraku, and parts of the Shire of East Pilbara encompassing the communities of Jigalong, Martu homeland communities and Kiwirrkurra) have additional stronger restrictions in place.

The State Government will soon be implementing an electronic system ('Good to Go WA'), with individual travel licences being issued to enable authorised persons to travel across State, Regional and LGA boundaries in accordance with their exemptions and any associated quarantine requirements. There will be a bulk upload function for companies to use to load their employees that must travel and are covered by exemptions.

 

Civil construction to continue operating safely

Premier Mark McGowan has stated clearly that the construction industry will continue to operate despite other restrictions. Mr McGowan added: "Whilst tradesmen and workers within industry, in particular the construction industry, are exempt from the new intrastate travel restrictions, they must remain vigilant with social distancing practices and hygiene on site."

CCF WA has assured Government that our industry can continue to deliver works safely and productively through this crisis. The civil construction industry has historically led the way in implementation of safety management systems and safer work processes, and we’ve adapted quickly to the current situation and implemented tough and effective control measures.

CCF WA is also meeting with representatives of building and construction industry groups and unions. We have agreed to send a united message to government that our industry is responding sensibly to the COVID-19 crisis and is ready to continue operating while keeping our workers safe. We believe it’s important to get on the front foot as an industry and reinforce the message that an active construction industry is critical to the health of the WA economy, and we’re taking that responsibility seriously.

Now it is up to all of us to demonstrate our commitment to keeping civil construction workplaces safe, by adhering closely to infection control measures such as social distancing and hygiene.

Safe Work Australia has published a fact sheet on minimising COVID-19 risk and exposure in the building and construction industry, with practical and relevant advice on social distancing and hygiene in a construction setting, and on consultation and communication with workers.

 

Pipeline of works

CCF is engaging with State Government infrastructure agencies/corporations seeking more detail on any plans to increase/fast track their capital works programs. With the private sector pipeline already being affected, additional govt works will be welcome.

 

Government support for businesses and employees

The Federal and State Governments have announced numerous measures providing financial support during this crisis.  These measures are detailed at the links below:

Federal Government support

State Government support

Coronavirus information for small business owners from the Small Business Development Corporation

CCF WA is engaging with Main Roads through the BORR Local Business Advisory Group in conjunction with the South West Development Commission.

The State Government recently announced the two consortia that have been shortlisted

• The Forrest Alliance (comprising CPB Contractors, Carey MC, Densford Civil, GHD and BG&E)
• Southwest Connex (comprising Acciona, NRW Contracting, MACA Civil, AECOM and Aurecon)

Main Roads and Transport Minister Rita Saffioti has stated that maximising local business procurement is a key objective for the BORR project. Through the Advisory Group, CCF’s role is to represent the local industry’s view on how that can be achieved.

Our advocacy includes

• Targets for local procurement -  an overall target (by value) including specific targets for: local road works contractors; local specialist subcontractors; and local specialist materials suppliers
• Discrete packages of work - CCF WA believes discrete packages (e.g. local road connections) will most effectively provide opportunities for local prequalified contractors, and local contractors with road-building capability.
• Service relocation works - CCF WA has written to Water Corporation and Western Power recommending local business procurement as a key objective for BORR-related relocation/enabling works.

 

Lodge your Expression of Interest for BORR opportunities

The South West Development Commission is asking local businesses to register their interest in BORR opportunities via a brief online form --  click here to register

 

Local Capability Fund grants

The State Government has announced a new Local Capability Fund round to encourage and support South West businesses to tender for work on BORR. Small to medium businesses in the South West can apply for up to $20,000 to help them tender for work on the project.

Grants can be used to meet essential prequalification requirements for supply-chain entry, buy and upgrade essential equipment and engage consultants for a range of expertise. If you’re considering an HSEQ management system, CCF’s Civil Contractor Management System is highly regarded and recognised by Main Roads.

A message from CCF WA CEO Andy Graham

In these difficult and uncertain times, CCF WA is focused on supporting our Members the best we can and continuing our role as the 'voice' of the Western Australian civil construction industry.

Many of you have contacted CCF in the past week. Your updates and insights on what’s happening in the market, and how your business is being affected, have been much appreciated and very useful in informing how we respond on behalf of the industry.

The main purpose of this message is to make it clear that civil construction activity has not been stopped by either the Federal Government’s latest restrictions on non-essential services or the State Government’s latest control measures. The construction sector (including businesses supplying construction goods, materials and services) have not been included in the list of ‘non-essential services’ that are prohibited. Therefore, the clear message is that we are in the ‘essential’ category and should keep calm and carry on.

At an advocacy level, CCF WA has written to the Premier and key Ministers responsible for infrastructure delivery, welcoming the ‘essential traveller’ exemptions to border closures announced on Tuesday, which will assist movement of essential construction industry personnel and freight.

We have further requested that civil infrastructure construction and maintenance activity be permitted to continue in the event of any further restrictions. The nature of civil infrastructure construction and maintenance operations – typically outdoors and with a low density of workers compared to other sectors – means that highly effective control measures can be implemented with relatively little disruption to workflows.

CCF has reminded the State Government that the civil construction industry has historically led the way in implementation of safety management systems and safer work processes, in partnership with our clients in Government and the private sector. We have adapted quickly to the current situation and implemented tough and effective control measures.

If our industry is to continue receiving this licence to operate, it is up to all of us to demonstrate our commitment to keeping civil construction workplaces safe, by ‘walking the walk’ and adhering closely to infection control measures, every minute of the day. We must integrate 'social distancing' into all processes and maintain separation of at least 1.5m at all times. These measures to reduce close contact should be supported by a stringent focus on hygiene, through regular hand washing/sanitising and industrial grade cleaning of common areas/equipment.

Managing the risks from COVID-19 – advice for employers from Safe Work Australia

Coronavirus (COVID-19) resources – fact sheets and downloadable posters.

Coronavirus and Australian workplace laws – latest advice from the Fair Work Ombudsman

 

Support for businesses

The Federal and State Governments have announced a wide range of measures designed to soften the blow to businesses.

These include:

Temporary relief for financially distressed businesses – a temporary increase to the threshold at which creditors can issue a statutory demand on a company and the time companies have to respond to statutory demands they receive.

Increasing the Instant Asset Write-Off – from $30,000 to $150,000 from 12 March 2020 until 30 June 2020, and now including businesses with annual turnover of less than $500 million (up from $50 million), along with accelerated depreciation deduction arrangements.

Boosting cash flow for employers – between $20,000 and $100,000 to SME businesses (annual turnover under $50 million) that make eligible payments, e.g. salary and wages.

State Government assistance includes one-off grants of $17,500 to businesses with annual wages between $1 million and $4 million

Supporting apprentices and trainees - businesses employing fewer than 20 full?time employees who retain an apprentice or trainee can apply for a wage subsidy of 50% of the apprentice’s or trainee’s wage paid during the 9 months to 30 September 2020.

Latest information on temporary changes to superannuation arrangements from CBUS

CCF WA is aware there is considerable uncertainty about how State Government departments, agencies and corporations will deal with contractual obligations that may not be met because of this unprecedented event. We have written to infrastructure delivery agencies/GTEs urging them to extend Government contracts without penalty if delays directly result from staff absences or supply delays caused by COVID-19, and to direct head contractors that they will only be granted such an extension if it is passed ‘down the chain’ to all subcontractors and suppliers.  We would expect the same consideration is shown by clients in Local Government and the private sector. All businesses will be under financial pressure during this crisis. As a matter of principle, businesses must not be put under further pressure, or even fail, by being unfairly penalised. If you feel this principle is not being adhered to, then please let us know.

(Please contact ccfwa@ccfwa.com.au as our office may be unattended)

Western Australia’s peak civil construction industry group says WA’s proposed industrial manslaughter laws are significantly tougher than similar laws in other states and should be referred to a parliamentary committee for careful review.

Civil Contractors Federation WA CEO Andy Graham said industrial manslaughter laws in other Australian states and territories all required some level of negligence on the part of the person being prosecuted, while ‘gross negligence causing death’ was the test recommended in the influential Boland review into Work Health and Safety laws.

“In WA, however, a business owner or manager could be charged with industrial manslaughter – carrying a maximum penalty of 10 years jail – and the prosecution would not even have to prove negligence or recklessness," Mr Graham said.

"WA’s small businesses should be most alarmed as they will be most at risk. Experience in other jurisdictions shows that smaller businesses are more likely to be prosecuted than larger, more well-resourced businesses."

Mr Graham said CCF WA's other concerns with the legislation included:

• No provision for prosecution of reckless or negligent behaviour by employees causing death - inconsistent with the principles of the legislation and shared responsibilities for safety.
• Individuals or family businesses could be prosecuted in relation to the death of a relative
• Inclusion of manslaughter offence in WHS legislation could compromise the common law privilege against self-incrimination

Mr Graham said CCF WA endorsed the Chamber of Commerce and Industry’s view (“Scrutiny must be applied to rushed industrial manslaughter provisions”) that further examination is needed of these critical provisions. CCF WA supports CCIWA’s recommendation that the Bill be referred to committee.

(This opinion piece by CCF WA CEO Andy Graham was published in The West Australian, Monday, February 17, 2020.)

Infrastructure construction has been in the news recently with claims of major delays and even ‘chaos’ on some of the upgrade projects going on around Perth. As the industry group representing the sector, we believe it’s time to address a few misconceptions.

Perth’s major civil construction sites are far from chaotic. On the contrary, works proceed calmly, professionally and most importantly, safely. For Main Roads and its contractors there are three basics: projects must be delivered safely, with the least possible inconvenience to motorists and nearby residents, and to the highest quality (the remarkable quality and durability of our roads doesn’t happen by accident – Main Roads’ specifications are among the most rigorous in the world).

We have been surprised to read negative commentary around the apparent lack of workers visible on road upgrade sites. It’s important to understand that building a road is not like building a house; a lack of tradies swarming over the site does not indicate a lack of activity.

For construction contractors, time is money. Every extra day on site reduces their already tight margins. Contractors are highly motivated to finish a project as quickly as possible, so they can get paid and move to the next job.

The fact is, though, that complex brownfields projects can’t be rushed. There’s more to adding a lane than clearing some space and whacking down some hotmix.

Carefully identifying and relocating essential underground services such as power, gas and water can take many weeks. Water is the enemy of a long-lasting road, so thorough and time-consuming dewatering is usually necessary. Millions of cubic meters of sand must be excavated, removed and replaced with subgrade, sub-base, basecourse, and multiple asphalt layers, all of which have to be thoroughly and patiently compacted and tested.

All of this, and much more, goes on within incredibly constrained sites, typically with traffic whizzing by on one side and houses, shops, a railway line or a river just metres away on the other. The contractors who perform this juggling act deserve our admiration, not condemnation.

Any additional congestion during construction works is regrettable but it’s important to remember the congestion well and truly predates the works. Some of the sections of freeway and major arterials being upgraded have been major bottlenecks for years – which is of course why the works are being undertaken. Infrastructure Australia has forecast that by 2031, Perth could have seven of the 10 most congested roads in the country – including the top four – unless we act decisively.

Sure, some projects will open a little later than originally intended. That’s mainly because there have been substantial changes of scope to those projects. These scope variations make perfect sense – if other remedial or preparatory work is identified that needs to be done, the best time to do it is now, rather than causing lengthier (and more costly) disruption later.

Some people have wondered why all construction contracts don’t include damages to ‘punish’ the contractor for actions that lead to congestion. Financial penalties, it is argued, would create a strong incentive for the contractor to meet shutdown deadlines. Except, they wouldn’t.

The reality is that sometimes the best laid plans go awry, despite contractors making the best decision in the circumstances and with the information available at the time. Hitting contractors with onerous penalties won’t change that.

Not that governments are averse to penalties. The State Government is far from a soft touch when it comes to contract conditions, and we have long argued for fairer risk allocation in contracts – so that, for example, a contractor doesn’t have to bear the cost of relocating a gas pipe that wasn’t on the plans provided, or removing some buried asbestos that no one knew was there.

Increasingly, however, governments acknowledge that the ‘old way’ of onerous contracts and adversarial relationships does no one any good, least of all taxpayers. Recently the Transport and Infrastructure Council – comprising the Federal and State transport and infrastructure ministers – agreed that “collaborative-based approaches to procurement, project management and risk allocation promotes safer and more productive delivery”. CCF WA welcomes this progress towards a more collaborative approach, and a culture where clients and contractors work together to achieve the best outcomes.

Andy Graham
CEO, Civil Contractors Federation WA

The Civil Contractors Federation WA says the contractor delivering the Smart Freeways project has been unfairly targeted following a delay in reopening lanes for traffic on the Kwinana Freeway Monday morning.

CCF WA CEO Andy Graham said it was disappointing to see commentary questioning the competence of the contractor, BMD Constructions.

“This company has delivered many billions of dollars’ worth of major road projects all around Australia over the past decade,” Mr Graham said.

“BMD is an experienced and highly competent road contractor. That’s why they’ve been entrusted with delivering the Smart Freeways project and other current freeway widenings in Perth – projects so complex and challenging that very few contractors were even willing to bid on them.

“There has been some suggestion that the contractor should receive a financial penalty for Monday’s events. There’s a very good reason that won’t happen.

“The Smart Freeways project is without doubt one of the most complex, high-risk projects ever undertaken by Main Roads. For that reason, the Government chose to deliver the project under an alliance agreement, where Main Roads, the contractor and design consultants work together collaboratively in a ‘no fault, no blame’ framework.

“On Sunday night, the unexpected happened, as so often does on risky and complex brownfields road projects. An existing cracked drainage pipe had the potential to create a sinkhole in the Freeway. The Alliance moved quickly to excavate and fill the area with quick-set concrete – the works were planned to ensure there was enough time allowed so that the concrete could gain sufficient strength prior to opening to traffic. Unfortunately, the concrete didn’t set as intended and the result was a frustrating delay for motorists. Despite that, the contractor acted reasonably to remove and replace the patch safely based on their vast experience.”

Mr Graham said the State Government’s ambitious infrastructure agenda was transforming Perth’s transport networks.

“It’s worth reminding ourselves why these works are being undertaken,” he said. “Without them, our growing city will soon grind to a halt every morning. Four years ago, an Infrastructure Australia report warned that without action, Perth’s major road arteries would be the most congested in Australia by 2031, causing massive ongoing congestion and costing the economy billions of dollars in lost productivity. These upgrades are essential, and unfortunately it’s inevitable they will cause some inconvenience. However, we’ll benefit for many years to come.”

The Federal Government is looking to reintroduce the Ensuring Integrity Bill into Parliament following the Bill’s defeat in the Senate late last year. The Government needs the support of the Senate crossbench to get the Bill through.

CCF's National office put forward a submission last year supporting the Bill and continues urge the Senate to vote in favour of the Bill.

Rogue union behaviour, and that of individual union officers must be brought to account and the Bill seeks to address that as follows:

• By including serious criminal offences punishable by five or more years’ imprisonment;
• By including a discretionary regime that allows the Federal Court to disqualify officials from holding office in certain circumstances;
• By making it an offence for a person to continue to act as an official or in a way that influences the affairs of an organisation once they have been disqualified;
• By allowing the Federal Court to cancel the registration of an organisation on a range of grounds including in relation to unlawful or otherwise improper conduct of the affairs of the organisation;
• By expanding the grounds on which the Federal Court may order remedial action to deal with governance issues in an organisation and expressly provide that the Federal Court may appoint an administrator to an organisation or part of an organisation;
• By introducing a public interest test for amalgamations of registered organisations.

Australia’s $100 billion pipeline of civil infrastructure projects needs a level of assurance and protection from costly delays and interruption caused by unscrupulous and unlawful individuals and unions who repeatedly exploit gaps in the current regulatory framework, which in many cases occur without the consent of their members and are not in the best interest of their members, or the general public.

The CCF acknowledges that the Government was re-elected with a clear mandate to implement its commitment to effectively deal with registered organisations that are dysfunctional or not serving the interests of their members, and therefore CCF supports the passage of the Bill through the Parliament.

Chris Melham
Chief Executive Officer
CCF National

CCF WA is seeking industry input on skills shortages and priorities in civil construction in response to the annual review of the State Priority Occupation List (SPOL). Please have your say by February 17 and help CCF WA and the Construction Training Council represent the civil construction industry's skills needs to Government. 

WHAT IS SPOL?

SPOL is produced annually by the State Government Department of Training and Workforce Development (DTWD). SPOL helps the Government allocate its funding for vocational education and training (VET) in WA, including which qualifications receive additional subsidies. It also informs workforce development planning in the State and is used as a key source of labour market evidence in a number of important policy areas, including development of the Western Australian Skilled Migration Occupation List (WASMOL) and the Graduate Occupation List (GOL).

SPOL is also used to inform the development of WA’s State nominated migration program (SNMP), to help target those occupations in genuine need and where local workers cannot fill such jobs.

SPOL has five priority ratings:

• State Priority 1 (the highest)
• State Priority 2
• State Priority 3
• Identified Occupation (inconsistent or conflicting evidence for inclusion – being monitored by DTWD)
• Not identified as a priority (no evidence for inclusion)

 

HOW DOES SPOL RANK CIVIL CONSTRUCTION SKILLS?

Traditionally, trade-level skills in civil construction have been assigned the lowest priority on SPOL, whereas building trades (e.g. bricklayer, carpenter, tiler, plumber) have always been assigned a State Priority level. The reasons for this disparity include:

• The building trades are generally better understood and more easily identified and classified
• The ANZSCO rating system (which forms the basis of SPOL) gives building trades a higher skill level.
• ANZSCO does not even recognise some civil construction skills, e.g., pipelayer, trenchless operator, utility worker – meaning SPOL cannot recognise them either.

In response to recent industry input, some civil construction skills (e.g.  Grader Operator, Excavator Operator) are now listed as ‘identified’ – this means that DTWD has acknowledged industry concerns but requires more statistical evidence.

If your business is affected by skills shortages, CCF strongly encourages you to contribute to the SPOL review by completing the brief survey below. Your response will assist the Construction Training Council to provide  information to DTWD on our industry's skills needs, and may help ensure that any skills shortages in civil construction are more accurately recognised on SPOL in future.

Please respond to the survey below (or click here to open the survey as a separate page) by February 17, 2020.

Meeting the growing demand for skilled employees will be the key challenge for Government and the industry as infrastructure construction activity increases in the coming years, according to the 2020 WA Infrastructure Report, released today by the Civil Contractors Federation WA and the Construction Contractors Association WA in conjunction with ACIL Allen Consulting.

Lead author of the report, ACIL Allen Executive Director John Nicolaou said infrastructure development was a key enabler of the State’s economy. “Targeted infrastructure investment can provide a significant stimulus in the short term through increased construction activity, but also over the longer term by driving productivity improvements throughout the economy,” he said.

“With engineering construction activity in WA forecast to grow at 7.7% per annum over the next four years, it’s imperative that the State Government focus its efforts on the sector’s human capital needs.”

Mr Nicolaou said vacancies for skilled construction workers in WA were on the rise, while the number of construction industry apprentices and trainees in training had fallen to historic lows.

“Current Government policy settings will limit the ability of international migration to address short-term skills needs where the supply of local labour is inadequate,” he said. “The high competition from the Eastern States for skilled construction workers – particularly skills around rail construction – is another factor affecting local supply.”

CCA WA CEO Peter Moore said the construction sector’s capability could be further challenged in the light of recent moves by the Federal and State Governments to bring some infrastructure spending forward and to provide additional funding.

“We see this as an ideal opportunity for the State Government to work collaboratively with the industry to ensure the works can be delivered efficiently and effectively, smoothing out the humps and ensuring the skills and resources are available to ensure value for money is achieved,” Mr Moore said.

The 2020 WA Infrastructure Report calls for deeper engagement by the State Government with industry to ensure the State’s approach to procurement is fit for purpose and it remains as a ‘client of choice’ in an increasingly competitive market.

CCF WA CEO Andy Graham said the report highlighted Main Roads’ frequent and structured engagement with industry as a model that other infrastructure delivery agencies could adopt.

“Our industry has certainly seen the positive outcomes from that regular exchange of ideas, and we believe all Government agencies and corporations can only benefit from closer engagement,” he said.

Mr Nicolaou said a closer relationship with industry could help address an ongoing and substantial underspend on State Government infrastructure.

“Over the past five years, the State Government has underspent a total of $5 billion on its budgeted capital works program,” Mr Nicolaou said. “If that rate continues, the actual capital works spend projected in the 2019-20 State Budget will be $3.6 billion lower over the forward estimates.

Mr Nicolaou said some of the factors influencing the actual volume of infrastructure spending versus planned infrastructure spending were outside the Government’s control.

“It is therefore important for Government to ensure those things which are within its control are managed effectively, to ensure it meets its capital investment ambitions,” he said.

The 2020 WA Infrastructure Report says the preconditions for a return to trend growth in the WA economy have become more evident over the past year. The resources sector continues to leverage from its most recent investments, which is realising significant export income for the State, while high commodity prices are also acting as a catalyst for the next wave of major investments in the sector.

At the same time, domestic conditions continue to improve, and the stronger financial position of the Commonwealth and State Governments provides the opportunity to progress important economic and social infrastructure priorities.

The improved investment outlook – both private and public – is reflected in the size of the current and future projects that exist in WA. Based on data sourced from the Business News Major Projects List and the Deloitte Access Economics Investment Monitor, it is estimated that there is approximately $160 billion in major projects that are either under construction or under active consideration in WA in 2019.

ACIL Allen expects that Western Australia’s GSP will expand by 3.1 per cent per annum between 2019-20 and 2022-23, with both iron ore and LNG sectors likely to remain the State’s growth engines over the outlook period. Double digit growth rates are forecast in these sectors, fuelled by the combination of both increased production and the new expansion projects.

 

The 2020 WA Infrastructure Report is available for download at: 

2020 Infrastructure Report for web.pdf

The Civil Contractors Federation WA says the new road projects announced by the State and Federal Governments today will provide a much-needed boost for Western Australian businesses and help address the State’s infrastructure deficit.

CCF WA CEO Andy Graham said projects such as the widening of Mitchell Freeway southbound from Hodges Drive to Hepburn Avenue, the Apple Street-Great Northern Highway and Wanneroo Road-Morley Drive intersection upgrades, and three regional corridor upgrades would provide opportunities for many Western Australian contractors and suppliers.

“We’ve been calling for more contracting opportunities in the $10 million to $100 million range to put some balance into the mix, and these projects fit the bill,” he said.

Mr Graham also welcomed the Federal Government confirming its support for bringing forward the Bunbury Outer Ring Road, Albany Ring Road, Karratha to Tom Price Corridor and Tonkin Gap projects.

“The State Government has been working hard fast-tracking the planning and procurement of these important projects to get them all up and running within the next year, and it's great to know the Federal Government is on board to support the accelerated timelines,” he said.

Mr Graham said that today’s announcements would give confidence to the local industry and boost job prospects for Western Australians.

“There’s a lot more to do, though,” he said. “Australia has consistently under-invested in productive infrastructure over past decades. Our infrastructure deficit is massive and growing.

“With interest rates at historical lows, we must seize the opportunity to tackle that deficit through debt funding of productive infrastructure.

“We agree that ‘cash splash’ stimulus is not the way to go – the best economic bang for the buck will come from investment in infrastructure that will boost productivity and improve the quality of life for this and future generations.”