July 2017 Infrastructure Update

What an amazing few months we have had in the Australian Civil Construction industry with huge announcements across Australia on major projects as our industry is about to crank up to yet another gear!

Demand for experienced personnel across the industry continues to grow with everyone from tier 1 majors to small family owned subcontractors all looking to take advantage of the upswing in activity and/or to service existing needs. We are starting to see significant pressures on salary levels across the market as companies compete for scarce resources and major projects ramp up their thirst for resources.

Just a sample of some industry news;

  • The Melbourne Metro Tunnel (Vic) – Preferred consortium for tunnel & stations announced being; Cross Yarra Partnership (Lendlease Engineering, John Holland, Bouygues Construction and Capella Capital).
  • Westconnex M4-M5 Link (NSW) – $7.247bn, two consortium’s shortlisted for bid.
  • West Gate Tunnel (Vic) – Preferred consortium announced; headlined by John Holland and CPB Contractors.
  • Northern Gas Pipeline (NT) – Construction has commenced
  • Haughton River Floodplain Upgrade (QLD) – Shortlisted tenderers announced
  • Ballarat Rail Line Upgrade (Vic) – Lend Lease, Coleman Rail and SMEC named as the preferred bidder
  • Murray Basin Rail Project (Vic) – McConnell Dowell & Martinus Rail preferred Contractor
  • Sydney Metro Tunnel (NSW) – John Holland, CPB and Ghella awarded contract
  • New South Wales – Committing up to $72.7b to infrastructure investments over the next 4 years.
  • Vic Country Rail – $1.52bn announced in Vic Country Rail project

Talent Associates continue to be at the forefront of the provision of recruitment services across the Civil Construction industry and provide a highly knowledge & ethical service to our clients. If we can assist with any recruitment requirements please don’t hesitate to contact us.

 

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June Infrastructure Update

June has been an interesting month for the Civil Construction industry with major projects now awarded in Adelaide, Melbourne, Sydney and Brisbane in the past 8 weeks. These projects are going to be major sources of work for many companies including subcontractors and suppliers. Companies are now mobilising delivery teams, so the employment marketplace is becoming more fluid.

Talent Associates is witnessing a major upswing in activity in hiring intentions amongst employers, with companies now willing to engage staff quicker then has been for the last 2 years and we have also experienced a large increase in people looking for alternative roles. This increase in active/passive candidates in the marketplace has been across most skill levels, with many looking to return to their states of upbringing or former residence.

Please see below for some updated industry news and attached some profiles of candidates whom Talent Associates are currently working with;

Industry News & Projects:

  • New underground railway station at Barangaroo as part of Sydney Metro
  • More than $16 billion for transport upgrades in NSW 2015-16 Budget
  • Leighton Contractors named as preferred contractor for level crossing removals in Blackburn, Mitcham and St Albans
  • NSW Budget provides $1bn for ‘simpler planning and better infrastructure’
  • Industry briefing held for Stage 2 of the Sydney Metro project
  • $1.162b D&C contract awarded to Lend Lease for Gateway Upgrade North project in Brisbane
  • Contract officially awarded to Pacific Complete Consortium for $4.3bn Pacific Highway upgrade project

May Infrastructure Update

We are witnessing a project transition in the national Civil Construction industry, as most states now have major projects under way or close to commencing. Talent has been readily available over the last few years but we are witnessing an industry shift to scarcity, particularly with companies continuing to beef up their management roles (PM and above).

Project Managers seem to be the hot commodity in the marketplace at the moment. Not those people who have done a bit here and there but those proven performers who can hit the ground running, have managed self-performed works and have a proven track record of project profitability.

Salaries have maintained their positions but as more and more projects start to be awarded/come out of the ground, then we envisage that there will be significant increases across the industry.

Talent Associates remain committed to working with the Australian Civil Construction industry in partnership to deliver high value recruitment and HR Services.

News

28 May – AV Jennings acquire $350m infill project in Vic – http://tinyurl.com/py4kdwv
25 May – First Civil Project for tender for West Sydney Airport – http://tinyurl.com/or7fohc
22 May – Help for Vic Infrastructure Planning – http://tinyurl.com/o2ksf5w
20 May – Women in Engineering – Award Nominations Open – http://tinyurl.com/o2abvwg
13 May – CCF Release 2015 Budget Response – http://tinyurl.com/o3jpsj8
11 May – Infrastructure Victoria Established – http://tinyurl.com/pxl6z2m
1 May – Preferred Delivery Partner for $4.3bn Pacific Hwy upgrade – http://tinyurl.com/nobmhfe

Projects Awarded

25 May – $2.44m, Sneydes Road, Vic – RECivil
19 May – $524m, 4 Level Crossing Removals, Vic – John Holland
8 May – $777k, Waverley Road, Vic – Bitu-Mill (Civil)
8 May – $1.33m, Sunbury Riddells Creek Road, Vic – Patten Pavement Services
4 May – $570m, Tulla Sydney Citylink Widening – Leighton Contractors

29 April – $896m – Torrens to Torrens, SA – Leighton Contractors & York Civil JV

February 2015 – Infrastructure Update

Activity in Australia’s Civil Construction continues to strengthen across markets, but is being impacted heavily by change of governments in Vic/Qld and the upcoming NSW state Election (28 March 2015). The industry is seeing a strong pipeline of future projects but continues to cry out for consistency/commitment to projects as evidenced by the continual discussions around the East West Link in Melbourne.

Talent Associates are seeing continual increases for demand for Project Managers, Project Engineers and Foreman, with NSW becoming a hot spot and Victoria’s 2nd to 4th tier contractors beginning to get a lot busier. We haven’t seen too much salary pressure as yet but expect this to occur in the second half of 2015 as demand rises across states to secure talented individuals. We are also having a lot of companies engaging us to undertake search assignments for difficult to fill roles, succession planning activities and strategic hires.

Please find below a summary of some news that you may find interesting and some contracts that have been awarded in February.

If you are interested in any of the profiles attached or have any requirements you would like to discuss with us further, please don’t hesitate to give Talent Associates a call.

News:
* 6 Feb – (Vic) Stockland to commence construction on $4.6bn development (http://tinyurl.com/pqtptgw)
* 7 Feb – (Qld) Government approves $3.8bn Brisbane Airport plan (http://tinyurl.com/nzwaadc)
* 9 Feb – (NSW) Sydney’s South West Rail Link Opened (http://tinyurl.com/pu3asly)
* 16 Feb – (Vic) Melbourne Metro Rail Authority established (http://tinyurl.com/q9zsfvn)
* 17 Feb – (Vic) $30m committed to Stage 1 of Murray Basin Rail Project (http://tinyurl.com/nul6pb2)
* 18 Feb – (Vic) $100m announcement for Flinders Street Station (http://tinyurl.com/on7r75p)
* 20 Feb – (Vic) $24m Rural Roads Funding announcement (http://tinyurl.com/poour4g)
* 25 Feb – (Vic) EOI’s closed for West Gate Distributor Northern Section (http://tinyurl.com/qzn6pd7)

Contracts:
* 2 Feb – (NSW) $2.6bn, Lend Lease, NorthConnex – nine kilometre twin tunnel link, M1 to M2
* 2 Feb – (Vic) $1m, SMB Civil, Road Safety Barrier Installation Works Morwell
* 5 Feb – (Vic) $1.73m, Services South East, Road Safety Improvement Works Murray Valley Highway
* 6 Feb – (Vic) $1.3m, Bitu-Mill (civil), Pavement rehabilitation/stabilisation McIvor Highway
* 11 Feb – (Vic) $1.67m, Enoch Civil, Traffic Signal Installation Princes Highway Dennington
* 11 Feb – (Vic) $3.88m, Services South East, Pavement rehabilitation on South Gippsland Highway
* 12 Feb – (NSW) $100m, BMD, Stage 1, Bringelly Road upgrade project
* 16 Feb – (QLD) $110m, Seymour Whyte, 5.7km duplication of Warrego Highway near Toowoomba 17 Feb – (Vic) $6.3m, Negri Contractors, Transport Network Improvements East Werribee
* 18 Feb – (Vic) $1.89m, ReCivil, Pavement Rehabilitation Calder Highway and Heathcote-Rochester Rd
* 18 Feb – (Vic) $1.5m, Newnham Earthmoving, Pavement rehabilitation/stabilisation, Nth Region
* 26 Feb – (Vic) $1.9m, Downer Edi Works, Pavement Rehabilitation Henty Highway

September Infrastructure Update

September was a huge month for infrastructure!

In Victoria, we had a $5.5bn contract for the East-West Link signed and NSW has seen the release of RMS’s forward work plan for 2014 – 2019, with the program including $2.8 billion for 2014 – 2015 but this is also supported by NSW Government’s record $7.8 billion infrastructure investment. In SA, the Southern Expressway is now fully operational (in both directions) and the $400m+ Torrens Road to River Torrens is currently out to tender.

In addition to this major investment into roads, we are saw huge investment into rail in both NSW and Victoria. Major projects are online in both states and others are very close to award, including; road/rail grade separations, light rail, rail tunnels and track infrastructure services.

We are expecting to see the climate really heat up in regards to demand for Engineers, Supervisors and Project Managers in particular over the next couple of months as projects start to ramp up. This is great news for all candidates seeking new opportunities in the infrastructure industry and also for employers who over the past 2 years have experienced some very challenging industry conditions.

June Civil Construction News

June has been a relatively slow month for project announcements and awards; with most of the focus still being on bidding for upcoming projects. In fact Vic Roads have not awarded 1 construction project to any contractor officially in the month of June!…. But the good news is that July is looking like a bumper month as they look to defer the award of projects to the new financial year. 

In terms of major projects, we see construction activity continuing to increase at the Port of Melbourne with BMD and McConnell Dowell in particular having a large presence and plenty of work now pushing ahead at the airport with Downer, Fulton Hogan, Leighton’s, Civilex and Fortunato among those civil contractors represented. East-West link has been cut to two bidders with John Holland/Leighton’s out the running and project Zebra (Tulla expansion) well into its bidding period. 

From a recruitment perspective, experienced Project Managers remain the focus of many contractors particularly in specialist areas and contracts administrators remain highly sought after. Will the projected upswing in construction activity (2014/2015) fast approaching companies are also looking to put in place strategies to retain key staff as demand increases and this no doubt will also put inflationary pressure on salaries 

Recent News  

  • 24 June – Australia’s Top 100 Engineers announced – http://tinyurl.com/meeyfvh  
  • 23 June – Two Bidders shortlisted for East-West – http://tinyurl.com/o6o7jdl
  • 20 June – Drug & Alcohol testing to be enforced on sites – http://tinyurl.com/nc23xoz  
  • 19 June – Investigation into adding another lane to Monash – http://tinyurl.com/khe4m5w  
  • 18 June – Balfour Beatty announce plans to staff to pull-out of Australia 
  • 16 June – $25m, Demonstration Plant, Latrobe Valley, Shanghai Electric Australia Power & Energy 

 

May Civil Construction News

May has been a huge month with plenty of announcements for major future projects, with a huge investment looking into Victoria’s infrastructure network across rail, roads, tunnels, land development, ports and airports. The future is looking very good.

The industry whilst looking very positive moving forward is still a case of the haves and have not’s with many companies tendering hard to secure additional works and others travelling along very well with recently secured projects. Fast forward 6 months and with the East-West Link, Rail Grade Separations, Rail and Tulla Widening all underway, hopefully will most contractors having full work books.

From an industry staffing perspective, Project Managers with proven delivery backgrounds and longevity in their employment continue to remain the most in demand people, closely followed by estimators and engineers with strong utility construction experience. We are also beginning to see many more Civil Contractors looking to engage experienced contracts & commercial candidates as they look to beef up their risk management and maximise project financial outcomes.

Recent Project News

Some Recent Contracts Awards

  • 23 May – $768k, Emergency repair works, Fish Creek-Foster Road – Fulton Hogan Industries
  • 9 May – $1.44m, rock revetment, San Remo – Services South East
  • 6 May – $1.92m, Road Works Baxter-Tooradin Road – Winslow Constructors
  • 2 May – International Container Terminal Services announced as winning bidder to operate Melbourne’s 3rd container port at Webb Dock – http://tinyurl.com/mvfd7dd