Constructing a Better Future: Restoring order and competition in the building industry
A productive and efficient construction will be critical to developing new industries, securing foreign investment and economic growth.
Yet productivity in the building industry is poor. Excessive wages and disruptive working practices typically increase the cost of construction by 20 to 35 per cent and, in some cases, even more. Better value for money in construction will help businesses expand, create new jobs and export opportunities.
The report examines a number of major government funded projects, included the Royal Adelaide Hospital, the Gold Coast Commonwealth Games site, the Majura Parkway project in the ACT and Victoria’s desalination plant. It finds that pattern bargaining agreements struck between contractors and unions are inflating the cost of projects and leading to inefficient work practices.