Civil sector well placed for works boost in COVID-19 response
A survey of civil contractors nationwide has highlighted the sector’s capacity to take on additional infrastructure projects and hire more workers, a peak industry body says.
Civil Contractors Federation National surveyed companies between April 4 and April 14, receiving responses from 228 companies (17.5 per cent from Queensland).
Respondents were asked to provide an indication of the impact of COVID-19 on their business, with 18.86 per cent reporting significant negative impact.
CCF National said the the vast majority reported a minor or moderate impact, reinforcing that the industry at large was in a strong position and remained ‘open for business’.
And it says the survey results strongly support its calls to government to fast-track spending on civil infrastructure as an immediate measure to ensure ongoing viability of civil construction companies and to boost the economy during and post COVID-19.
They showed 74.12 per cent of respondents had capacity to tender for additional works in the $0-10 million threshold, 17.54 per cent for projects $10-50 million and 8.33 per cent for rojects graeter than $50 million.
In addition to being able to tender for new work, the majority of companies said they would employ additional workers when the government provided additional project funding.
Push to bring infrastructure projects forward
“The survey sends a powerful message to the Federal Government that the civil infrastructure sector is ready to lead the economic recovery if Governments inject more money into the sector for new projects,” CCF National chief executive officer Chris Melham said.
“I have previously written to the Prime Minister recommending that he bring forward spending from the already committed 10-year $100 billion infrastructure program – this spending is not a cost it’s an investment.”
CCF National is also calling for the Federal Government to adopt a procurement policy that incorporates disaggregation of major projects to provide an opportunity for tier 2 companies to tender, for example, through joint venture arrangements.
And it wants the Federal Government to develop and release a public agency supplier payment policy as a matter of urgency as a form of injecting cash into the civil construction supply chain by ensuring the immediate payment of all outstanding claims and prompt payment of future claims.