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June 15, 2012

Road Construction: Can Deaths Be Prevented?

Filed under: Uncategorized — Tags: , , — tom @ 5:22 am

road construction zones

When Keith A. Jakel left home for work on March 21 this year, he had no idea that he would not return.

On that day, the 55-year-old from Highland, Illinois was working on repairs on a shoulder on US Midwestern Highway Interstate 39 when he was struck by a semi truck which had failed to merge into the left lane quickly enough and had chosen instead to drive around a Department of Transportation arrow truck by going onto the right shoulder.

Tragically, Jakel is not the first to be killed in a road construction zone, nor will he be the last. In the United States alone, figures from the Bureau of Labour Statistics indicate that approximately 100 construction workers are killed in roadway work zones every year – equating to around eight per cent of total construction deaths in that country.

Painting an even starker picture, that figure does not take into account the number of drivers and other vehicle occupants, pedestrians or bikers also killed in these zones.

So what causes these accidents? Arrive Alive, a South African organisation dedicated to reducing road deaths, has identified a number of contributory factors. Perhaps not surprisingly, the organisation says speeding traffic is the number one cause of death and injury in highway construction zones around the world.

Other contributory factors include:

  • Inadequate sign posting and lighting/drivers failing to notice road workers.
  • Drivers ignoring work zone signs or flaggers indicating they should slow down or come to a stop.
  • Drivers being distracted by cellular phone calls/conversations/roadside activities and subsequently failing to merge properly.
  • Incidents like the one that killed Jakel, in which drivers drive in the closing lane right up to the last second and then try to force themselves in, often being tempted to enter the work zone if they are unable to get across.

road safetyWhat can be done?

From a site management viewpoint, a number of simple measures can make a big difference.

For significant works on major freeways and highways, provision of prior notice to motorists via press, radio ads and electronic signage can encourage motorists to seek alternative routes, thus reducing the volume of traffic flowing through at the time of the works, lessening driver frustration at the scene and making drivers more aware of the likely dangers at the scene.

At the scene, signs must be clean and well-maintained, while workers should be wearing conspicuous clothing.

Traffic controllers must be adequately trained with regard to where to stand, how to slow or stop traffic, and how to coordinate public and construction traffic movements. Where visual contact with other controllers is not possible, two-way radios should be used. Controllers should be provided with temporary traffic signals to control traffic where the site is suitable and where such signals are available.

Speed limits, which should be especially vigorously enforced, should be consistent with safe traffic movements around the site. This is key, as motorists are likely to ignore any limit they perceive as being unrealistic.

Measures to prevent driver frustration, too, can help to reduce erratic behaviour. Where vehicles are held up in queues, for example, a worker might be appointed to talk with motorists, apologise for delays, give them an estimate as to how long they might be kept waiting and keep them generally informed.

Beyond vehicle control, the actual area where the work is being performed must also be kept safe. Access points leading to areas where construction blasting works are being carried out, for example, must be manned to prevent entry during blasting.

More broadly, road authorities, and perhaps construction industry bodies and unions, should engage in efforts to promote broader driver awareness with regard to construction zones and how erratic behaviour can lead to danger.

Of course, none of this matters where drivers fail to use basic common sense, as appears to have happened in the Jakel case.

Proactive measures at individual sites will go a long way toward reducing road construction zone accidents. Unless drivers themselves use common sense, however, accidents like that which killed Jakel will continue to occur and construction workers will continue to be needlessly killed at road work sites.

By Andrew Heaton

http://designbuildsource.com.au/road-construction-can-deaths-be-prevented

Green Jobs Redirected, Not Axed

Filed under: Uncategorized — Tags: , , — tom @ 5:09 am

green jobs transferred

The green building sector has taken a big hit this year after a number of federal initiatives were axed. The loss of major green developments is placing mounting pressure on those in the sector, particularly in relation to the loss of job opportunities the lack of investment may cause.

Climate change parliamentary secretary Mark Dreyfus has defused some of those concerns, however, with the announcement that the $45 million allocated to the dumped solar hot water rebate scheme will be redirected into two other green initiatives.

In what is known to be a Greens Party push, money will now be reallocated to a $24 million community solar and heat pump hot water program and a $21 million existing Home Energy Saver Scheme (HESS) in order to help lower income Australians afford renewable energy technologies.

Tim AyresWhile Australian Manufacturing Workers Union secretary Tim Ayres is skeptical about business pledges in regard to the scrapped hot water scheme, he states that the reallocation of funds will support the green building sector by substantially saving jobs.

“I don’t believe there will be job losses,” says Ayres. “This is a very significant subsidy and the industry has got a social obligation now to make sure they are delivering for local jobs and delivering for apprenticeships.”

Not only is the investment boost expected to ensure green jobs, it is also expected to aid in the education/communication gap between the industry and the public, allowing everyday Australian households to understand new green technologies and skills to better manage energy consumption.

The first of the schemes will be initiated in October of this year.

The federal government has clearly felt the industry backlash after a number of broken promises in regards to investment and support. However, with the strong support of the Greens, sector confidence is returning, especially in light of the much needed green job security these new schemes offer to provide.

http://designbuildsource.com.au/green-jobs-axed-redirected

Melbourne Home to World’s Most Iconic Stadium

Filed under: Uncategorized — Tags: , , — tom @ 5:01 am

aami stadium melbourne aerial view

While the elements that make architecture iconic are certainly debatable, one can be certain that if the World Stadium Congress deems a sporting arena to be iconic, it is.

The panel of judges at the World Stadium Awards Ceremony and Gala Dinner help in Doha, Qatar have labeled Melbourne’s multi-award winning AAMI Stadium an icon, and the plaudits do not stop there.

The panel dubbed the facility ‘the world’s most iconic and culturally significant stadium,’ citing its unique shape and importance to the larger Melbourne cultural experience as its most notable features.

The stadium was nominated by project architecture team Cox Architecture and Arup. In accepting the award, Russell Lee of Cox Architecture said that, “the AAMI Stadium is a fantastic achievement for our organisation and for the Victorian Government. It is the first truly rectangular stadium in the city of Melbourne.”

aami stadium melbourne

Also known as the Melbourne Rectangular Stadium (MRS) due to its unique shape, the facility can hold 31,000 spectators. Construction on the stadium was completed in 2010. Victorian industry members and residents alike have warmly received the stadium, with its highly unique bio-frame roof marking it as a standout structure in the Melbourne skyline.

Cox Architects design director Patrick Ness says that while local support for the development has helped it achieve its current level of cultural importance, the global recognition is a lofty honour for the entire team.

“We are honoured to have designed this world breaking stadium that not only was recognised in Victoria as the recipient of the Victorian Architecture Medal in 2011 but has now been recognised internationally as an exemplar stadium,” he says.

The award is a great honour for both the stadium and Australian architecture at large. With the development coming out as the best of the best in terms of global stadium architecture, the Australian industry is truly being recognised for its large-scale design impact.

desiganbuildsource.com.au/melbourne-home-world-most-iconic-stadium

Blueprint for Melbourne’s newest suburbs released

Filed under: Uncategorized — Tags: , , — tom @ 3:29 am

The Victorian Government has released the final Growth Area Corridor Plans for Melbourne’s designated growth area suburbs which will act as the blueprint for the state’s newest communities.

The Corridor Plans are accessible on the Growth Areas Authority website by clicking here.

The Property Council’s media release is available here.

The Corridor Plans will provide industry and the community with greater certainty by establishing the planning framework for designated employment areas, land supply for residential development and infrastructure priorities in the growth areas.

The Property Council worked closely with the Victorian Government, its departments and agencies throughout the extensive period of consultation prior to the release of the Corridor Plans.

The Property Council’s submission to the draft Growth Area Corridor Plans released in late 2011 is available here.

The Corridor Plans establish a solid planning framework for Melbourne’s growth areas. They are integral to address the challenges associated with a growing population and slowing economic productivity that Victoria currently faces.

The Property Council will continue to work with the Victorian Government as to deliver the aspirations set out by this planning framework.

The Property Council’s residential industry briefing on 28 June 2012 will provide the first look at the blueprint for Melbourne’s newest suburbs. Click here to register.

http://www.propertyoz.com.au/vic/Article/NewsDetail.aspx?p=16&id=5917

June 13, 2012

Government shifts green wedge boundary

Filed under: Uncategorized — Tags: , — tom @ 3:36 am
Urban sprawl: The new land release raises concerns of a glut of housing lots ready for development.Urban sprawl: The new land release raises concerns of a glut of housing lots ready for development. Photo: Erin Jonasson

THE Baillieu government is set to open up thousands of hectares of green wedge and farmland for housing on the metropolitan fringe, adding to a glut of Melbourne housing lots ready for development.

Planning minister Matthew Guy will today unveil long-awaited plans to extend Melbourne’s urban boundary in growth areas including in the cities of Casey, Whittlesea, Hume, Melton and Wyndham. About 7000 hectares is likely to be taken into the urban area in coming weeks under government policies known as ”logical inclusions”, and a separate review of green wedge ”anomalies”.

It will be the fourth time the boundary has been shifted since the Bracks government introduced it in 2002, promising to put an end to urban sprawl.

The Coalition government would not discuss details of today’s announcement yesterday, however a leaked copy of recommendations by the high-level Logical Inclusions Advisory Committee reveals recommendations to the minister to:

  • include 14 new fringe areas across eight municipalities totalling more than 6000 hectares
  • refer another 16 areas for possible future review in line with the Coalition’s promise to review the boundary every two years
  • reject requests for the inclusion of 11 areas in five municipalities
  • reject the City of Casey’s request to excise from the metropolitan area a market garden area at North Clyde in the City of Casey, rezoned urban by the Brumby government

Mr Guy has indicated he will follow the recommendations of the expert panel after a complex process that included initial assessment and recommendations by the government’s Growth Areas Authority.

Despite being equivalent to about 3500 MCGs of green wedge and farm land, the Coalition’s first boundary review is a relatively small extension compared to the Brumby government’s inclusion of almost 40,000 hectares in 2009-2010. The planning minister at the time, Justin Madden, said there would be no need for another boundary review in his lifetime.

Today’s announcement will be welcomed by development groups, many of which have been calling for more land releases. However, the addition to Melbourne’s suburban land supply comes at a time when the property industry is already struggling to sell lots.

A new report by leading property researchers Oliver Hume says that outer Melbourne is facing a land supply glut, with a record high of up to 200,000 lots to be ready for development in 2013/2014.

It points out that Victoria’s population growth has slowed dramatically since 2009, and fringe land prices have plunged with it.

”This year a record 142 land projects will compete for a dwindling number of sales,” said Oliver Hume head of research, Andrew Perkins.

”Put simply, further release of land for urban development in the current climate is debatable,” he said.

The Labor opposition yesterday attacked the expansion as an unnecessary assault on green wedge and farming land that would benefit some landowners, developers and property industry lobbyists who had contributed to the Liberal Party.

”Mr Baillieu must explain the curious timing of a decision that allows Liberal Party mates to benefit from turning our open space into a concrete jungle,” said planning spokesman, Brian Tee.

June 7, 2012

Surprise surge in economy

Filed under: Uncategorized — Tags: , — tom @ 4:01 am

A SURGE in mining investment and an apparent upswing in consumer spending have delivered Australia one of the fastest economic growth rates in the developed world.

At 4.3 per cent, Australia’s reported annual growth rate is faster than that of any of the developed nations in the Organisation for Economic Co-operation and Development.

And the quarterly rate of 1.3 per cent reported yesterday was more than double the most optimistic forecast.

Illustration: Ron Tandberg.

Some economists, however, expressed incredulity at the figures and warned they may be subject to later downward adjustment.

After confessing to being ”somewhat surprised” at the March quarter figures, Treasurer Wayne Swan used them to lambaste the opposition for talking the economy down and trying to dent confidence.

“Let’s make these figures an extraordinary circuit breaker. This tide of negativity, this relentless negativity from the doomsayers has to stop. It insults the hard work that so many Australians put in to make our economy strong,” Mr Swan said.

He also took aim at unnamed business figures for talking down the economy, echoing concerns held within the Reserve Bank.

Asked who in the business community was relentlessly negative, he told the ABC’s 7.30 there were “one or two who go out there and run the economy down all the time”.

Hailing the growth figures, Mr Swan said: “We have seven eurozone economies in recession, as well as in the UK, and many more developed economies which are crippled by unemployment.

”This result says something very special about Australia and about our capacity to face up to the worst that the world can throw at us.”

New engineering construction – most of it related to mining – accounted for much of the quarter’s economic growth, jumping 19.7 per cent over the quarter and 53 per cent over the year. Consumer spending was also important, with the volume of goods and services bought swelling a near record 1.6 per cent over the quarter and 4.2 per cent over the year.

The figures suggest Australians bought 4 per cent more food during the quarter, 6 per cent more transport services and 3 per cent more health services – outcomes described by UBS economist Scott Haslem as “positively unbelievable”.

The consumer inflation rate reported in the figures is zero for the March quarter and 1.4 per cent over the year. Household incomes grew 2.5 per cent in the quarter, while household savings were little changed at 9.3 per cent of income.

The best measure of spending by state shows NSW spending slipping a seasonally adjusted 0.3 per cent in the quarter, Victoria advancing 1.8 per cent and Western Australia climbing a phenomenal 7.8 per cent.

More reliable trend figures show NSW spending climbing 2.1 per cent per year and Victoria 1.9 per cent.

In contrast, WA spending surged 13.6 per cent – a faster rate of growth than in China.

The news sent the Australian dollar to its highest close in a fortnight – US98.48¢. The sharemarket inched ahead by 0.29 per cent.

Describing the figures as “surprising to all”, shadow treasurer Joe Hockey said they would be better with a better government. “Imagine how well our country could do if we had a good government,” he told a news conference.

“This is not the time to make conditions more difficult for the mining industry. It is not the time to put a new tax on the mining industry.” Asked whether he was running a scare campaign, Mr Hockey said: “The scariest thing in Australia is Wayne Swan and, quite frankly, if you look at his words over the last few months he confirms it.”

June 5, 2012

Industrial on way up

Filed under: Uncategorized — Tags: , , — tom @ 3:59 am
No captionA 28,853 square metre warehouse available in Somerton through CBRE.Warehouse winners … low vacancy rates and CPI-linked rent increases are tipped to continue through to 2013. Photo: Andrew Hobbs

THE national industrial market will perform better in the coming year, the ratings agency Moody’s has said.

Its latest report says that, in Australia, the sector’s steady operating performance will be underpinned by low vacancy levels – expected to continue throughout this year and into next – and fixed, annual rental increases, linked to the consumer price index (CPI).

The report says supply and demand will remain balanced and there will be more build-to-lease rather than speculative activity.

This is despite the malaise hanging over the construction industry.

”The majority of leasing demand continues to be driven by transport and logistics, with the bulk of inquiries seeking prime-grade facilities,” the report says.

”This trend was evident with 62 per cent of gross absorption in the six months to April being accounted for by prime leases. However, after three years of below-average supply, prime vacancies are relatively scarce, accounting for only 23 per cent of vacancies as at April.”

In Sydney, after a subdued 2011, pre-lease inquiry has started to re-enter the market, Knight Frank’s research analysts say.

Development and construction projects, commissioned by specific companies, will continue to drive supply, which is forecast to total 574,186 square metres this year.

This is well below the annual average gross completion rate of 743,986 square metres that was recorded in the five years to 2008. Speculative projects remain limited despite reasonably successful leasing outcomes to date.

Research by Knight Frank shows leasing demand has been firmer for prime options and this has been reflected in the take-up figures. Knight Frank’s NSW research manager, Nick Hoskins, said that in the six months to April, 62 per cent of gross take up (excluding specially-commissioned projects) comprised leases on prime assets.

”These take-up figures have included the relatively strong absorption of speculative stock, which has benefited from the lack of alternative prime vacancies available in existing buildings. As much as 66,000 square metres of speculative stock has been leased since October 2011.

”However, rents are yet to demonstrate this relativity and in the 12 months to April 2012, average Sydney A-grade net face rents recorded modest sub-CPI growth of around 0.9 per cent.”

Knight Frank’s national industrial director, Eugene Evgenikos, said with the majority of tenants looking, and a growing shortage of prime leasing options, it is expected that larger, prime assets may be the first types to demonstrate material rental growth, which is expected to emerge in the coming 12 months.

”While the prime leasing options are sparse in western markets, Sydney South is likely to be the first region to start experiencing rental growth over the coming year,” he said.

Massive skyscraper proposed for CBD

Filed under: Uncategorized — Tags: , , — tom @ 3:56 am

A DEVELOPER wants to build a 50-storey skyscraper in an area of Melbourne’s CBD with planning restrictions that limit building heights to just 30 metres.441-451 Elizabeth Street, Melbourne.

A heritage group has raised concerns about the $100 million tower proposal, which would require the demolition of the rear of the former Royal Saxon Hotel on Elizabeth Street — one of Melbourne’s original hotels and one of the oldest buildings in the city.

The developer, Goodyear Properties,  has asked Planning Minister Matthew Guy for the go-ahead to build a 145-metre building, with more than 300 residential apartments, a pool deck and rooftop garden.

Artist’s impression of the proposed 50-storey development.

The proposal would retain the front six metres of the former hotel, which would be incorporated into the  new tower.

The Royal Saxon Hotel was built in 1858 and is one of Melbourne’s earliest surviving and continuously occupied hotels.  The former hotel is one of 99 buildings that the City of Melbourne nominated for heritage protection last year, but Mr Guy has not made a decision on the list or given the buildings interim heritage protection.

Heritage Action spokesman Rupert Mann described the hotel’s treatment as ‘‘inappropriate’’.

NEWS. 4 June 2012. Artists impression of a development proposal to build a 50-storey tower at 441-451 Elizabeth Street in Melbourne. MUST CREDIT Peddle Thorp Architects.‘This is one of only two remaining hotel buildings from the 1850s in the CBD and is an extremely rare piece of the gold rush era in Melbourne,’’ Mr Mann said.

Architect Chris Godsell, from Peddle Thorp Architects, said the hotel building had been significantly altered internally over a long period of time.

‘‘We are proposing to keep the section of the building that was not already altered,’’ he said “That exists significantly in the public domain…this is a commonly used method of retention when renovating small heritage buildings.’’

Two neighbouring Victorian era buildings — which are not heritage listed — would also be demolished.

Mr Mann said this would erode the ‘‘heritage character’’ of the street, but Mr Godsell said these buildings had not been nominated for heritage protection by the council.

Mr Godsell also said the new building’s scale would not be unique, with buildings well over 30 metres already approved in the surrounding area.

The site is in an northern area of the CBD near the Victoria Market that is emerging as a high density precinct, with a large number of skyscraper proposals or approvals, including the 45-storey Fulton Lane development, in Franklin Street and the 56-storey Zen apartments development on Therry Street.

Mr Guy was approached for comment but his spokeswoman did not respond before deadline.

June 3, 2012

Brisbane gets its own ‘Barangaroo’: Government announces $2 billion development

Filed under: Uncategorized — Tags: , — tom @ 11:54 pm

The Queensland Government has announced a $2 billion master plan to revamp Brisbane’s Parliamentary precinct which has been compared in size and scale to Sydney’s massive Barangaroo development.

The initial plans include one or two towers to be built on William Street and for shops and restaurants along the northern river bank.

The images releases to media have already caused some controversy.

The ABC ran a TV news story, noting that the renders, by Cox Rayner, (pictured below) sent to the media are actually from a plan commissioned for the previous government.

The Brisbane Times reported that when asked about the designs Premier Campbell Newman said: “It’s just an artist’s impression to give people a feel for the excitement we have for the revitalisation of the precinct.”

Currently the site is a car park beside the Riverside Expressway but under the new plans could be converted into a riverside boardwalk and a pedestrian plaza.

George Street would also be part of the revitalisation project which Newman said will help the precinct become a ‘hub of activity, day and night.’

“The government will also seek options for the redevelopment and enhancement of 80, 100 and 102 George Street through an Expression of Interest process, providing up to 60,000 square metres of additional office space,” he said.

Newman said that the plans would be cost-neutral to the taxpayer and would include office, retail, residences, open spaces and a hotel potentially creating up to 18,000 jobs which he pointed out is important in the current declining building industry.

Public Works Minister Bruce Flegg said that Cox Rayner had not been contacted about the plans since he became minister.

“It’s an old artist’s impression for discussion purposes,” Dr Flegg said of the render.

The government will soon be inviting Expressions of Interest for the William Street development.

1 June 2012 | by Madeline Prince

http://www.architectureanddesign.com.au/article/Brisbane-gets-its-own-Barangaroo-Government-announces-2-billion-development/534556.aspx

Market Report: Queensland Back on the Rise

Filed under: Uncategorized — Tags: , , — tom @ 11:38 pm

mining constructionAs the impact of the mining boom continues to flow through to strong demand for commercial property, the long-term outlook for rents, capital growth and construction activity in Brisbane continues to strengthen – as does that for engineering construction.

Following a horrific few months late last year, the state’s residential construction sector appears to have picked up, though activity remains subdued levels compared to historic standards.

Below is an analysis of current market conditions in residential construction, commercial property and non-residential construction, engineering construction, construction sector employment and construction costs throughout the state’s construction industry.

Residential

Following a shocking period late last year, Queensland’s housing sector finally seems to be back on the rise, albeit with activity remaining at low levels by historic standards.

In a sign that the pace at which new work is coming in has picked up, the seasonally adjusted number of stand-alone houses approved for construction has now risen in four consecutive months. Furthermore, at 4,776, the number of stand-alone houses approved in the three months to February (seasonally adjusted) was up by almost one-fifth over the figure for the previous three months to November of last year (4,040).

In terms of multi-residential apartments, the immediate future is not quite as promising. At 3,983, the seasonally adjusted number of multi-residential units approved for construction in the six months to February was well down on the that for the six months immediately prior to that (5,183).

Nontheless, partly due to a lack of supply, and also because of an anticipated influx of demand from white collar workers as mining firms open up offices in Brisbane, some developers are optimistic over the prospect of good returns in the market.

Meanwhile, the market for renovations remains flat, with the seasonally adjusted value dollar value of additions, alterations and refurbishments approved during the past six months ($646.7 million) down slightly from the dollar value six months before that ($658.2 million).

Given the stronger numbers coming through for stand-alone housing, Housing Industry Association (HIA) expects a modest pick-up in activity during the next few quarters. While the end of the state government’s home owner bonus scheme on April 30 will not help, the impact of this will be offset to some extent by the reinstatement of stamp duty concessions for homeowners.

In the longer term, however, the HIA expects housing activity in 2012 to remain at subdued levels, albeit with a slightly modest improvement on last year.

Queensland Housing Stats by QuarterQueensland Housing Stats by Quarter

Commercial Property

With mining now accounting for around 55 per cent of office leasing deals struck last year according to Jones Lang LaSalle (up from 13 per cent in 2008), the commercial property market in Brisbane is reaping its share of the benefits of the mining boom.

Primarily because of this, office vacancy rates in the Brisbane CBD have fallen from their post-global financial crisis highs of around 12 per cent to around 6.2 per cent now.

Going forward, ongoing resources strength (see ‘Engineering Construction’) is expected to continue to underpin strong demand over the next two to three years, with industry research firm CBRE Australia expecting vacancies to fall below six per cent in 2014 and remain there for a considerable period.

In the short term, however, CBRE expects vacancies to edge up as completions of the One One One Eagle Street project and another at 145 Ann Street add to supply.

Outside of offices, participants in the most recent Property Council of Australia Property Confidence survey have a positive short-term outlook with regard to capital growth expectations for retirement living accommodation and a reasonably positive outlook for industrial property. This is not the case for shopping centres and tourism, where survey participants have expressed pessimism.

In terms of construction activity, the pace at which new work is coming in has slowed. At $2.535 billion (seasonally adjusted), the overall dollar value of commercial and other non-residential buildings approved for construction throughout the state in the six months to February was considerably lower than the $4.343 billion approved in the previous six months to August.

Again, however, confidence seems to be on the rise, with participants in the Property Council survey expressing confidence in their own forward work schedules and saying that construction activity is in on the rise in the office, industrial and retirement living sectors while being stalled in retail and declining in tourism.

Queensland Housing Stats by YearQueensland Housing Stats by Year

Engineering construction

Not surprisingly, given the strength of the resources sector, current levels of engineering construction activity are extremely strong. Thanks largely to work on projects such as the Australia Pacific LNG project, the  total value of work done on engineering construction projects throughout Queensland came in at $8.58 billion (seasonally adjusted) during the December quarter – up 62.1 per cent on the same quarter twelve months earlier.

Better still, even outside of mining, activity seems to be reasonably strong. Disregarding the contribution from heavy industry (which has gone from just over $20 billion to more than $50 billion – not seasonally adjusted – in just twelve months), the total value of work done across all other sectors was up 16.2 per cent in the December quarter when compared to the same quarter 12 months ago, though some of this was due to spinoff work from mining projects.

Going forward, industry research firm BIS Shrapnel expects activity to grow by around 40 to 45 per cent again in 2011/12 as new resource projects crank up, and to continue to grow through to 2014/15, after which BIS expects activity to drop back.

Queensland Engineering Construction ActivityQueensland Engineering Construction Activity

Employment/Costs

Not surprisingly, given the disparity between the state of Queensland’s building sector – especially in residential – and the civil construction sector, a significant disparity exists in the state’s labour market among different sectors.

In the residential sector, the persistent weak state of the market means labour market conditions in this sector are more favourable to employers than workers at this time. This is borne out in the most recent HIA Trades Report (December quarter) which showed a significant oversupply in labour across a broad variety of trades relating to housing in both Brisbane and Regional Queensland.

More encouragingly for those in the building trade however, the number of participants in the Property Council of Australia’s latest Property Confidence survey who expect staffing levels at their firms to increase over the next twelve months (40.9 per cent of the total) far outnumbered the 14.2 per cent expecting staffing levels to fall. These figures appear to indicate that even in building, demand for staff is expected to pick up.

Conversely, in engineering, competition for talent is intense. This means good opportunities should arise for workers but will place upward pressure on labour costs. By the end of this year, industry funded group Construction Skills Queensland says, projects in areas such as mining, natural gas and transport will require an extra 25,000 skilled workers.

In terms of construction costs, the majority of the aforementioned respondents (52.7 per cent) to the Property Council survey expect costs to rise over the next 12 months, though most of these expect any such increases to be limited to less than five per cent.

http://designbuildsource.com.au/state-analysis-queensland-april-june-queensland-rise

By Andrew Heaton
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