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AU Building up to big problems

Property Here - Wednesday, May 08, 2013

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A PERFECT storm of infrastructure projects being built at the same time could cause massive blowouts, delays and even major projects such as the WestConnex road link being shelved.

As the O'Farrell government looks to finally get the state moving, the Civil Contractors Federation has warned that, because so little has been happening in recent years, the industry will need to increase capacity 70 per cent almost overnight.

In three to four years' time, under the State Infrastructure Strategy, a string of projects will be under construction at the same time, including the WestConnex ($10-$13 billion), light rail through the city ($2 billion), the F3 to M2 ($3 billion) and the North West Rail ($8 billion). The $1.5 billion Bridges for the Bush program will also be under way.

"It's a $12 billion industry that will grow to $21 billion within five years," CCF boss David Castledine said.

He also called for smaller, "shovel-ready" projects to start over the next two years to help boost labour numbers and improve skills.

The Daily Telegraph understands pinch-point projects around the airport and Parramatta - involving the construction of new roads and widening of existing ones - are under consideration for the June 18 state Budget.

Infrastructure NSW boss Nick Greiner said: "We have to get it right. You can do some smaller things early and I think the government's considering that."

The BIS Shrapnel research shows that civil construction work will be at around $12 billion in 2013, lifting to $13 billion in 2014, $14 billion in 2015, $16 billion in 2016, $19 billion in 2017 and $21 billion in 2018.

Adrian Hart, BIS Shrapnel senior manager (infrastructure and mining), said: "These are huge projects that (dwarf) any infrastructure ever built in the country. I'm concerned a lot of work is happening in a small sort of area. You have got to allocate skills to do it."

Treasurer Mike Baird said: "I think we are seeing it in Barangaroo. It's a big project. There's a sense that work is starting, it's under way."



Read more: http://www.news.com.au/realestate/news/building-up-to-big-problems/story-fncq3gat-1226637153378#ixzz2SfiNBPog