The Issues Facing The Australian Construction Industry

The Issues Facing The Australian Construction IndustryThe Australian construction industry has had a lot of negative media attention of late. Some deserved and some not. Here we discuss some of the issues.

Rising Project Costs:

One great problem the Australia construction industry is facing now remains on the rising project costs. This is practically due to the rise in prices of metals, oil, a strong Australian dollar and rising interest rates. These factors are basically affecting the efficiency of the Australia construction sector.

Quality Control:

One of the most nagging issues facing the Australian construction industry is quality control. The fact is that in the midst of poor productivity, there is no law or regulation established to regulate the quality of services delivered. This is because the industry lacks focus to establish the best standard of services that should be delivered. More on BCM’s services here. “Where there is no focus, the industry will gradually collapse” say inspectors from JKB Property Inspections who are on the front line in the fight for quality in the industry.

Corruption Issues

The construction industry is one of the industries in Australia, like the rest of the world, that has suffered a lot at the hands of corrupt individuals and organised crime.  At the time of writing, there is a Royal Commision underway into the building industry and weekly reports in the media of malpractice. The government is also considering the return of the Australian Building and Construction Commission that was abolished some years ago.

Reduced Workplace Productivity:

Studies have shown that average work hours either remain the same or decrease. This is one big problem that the Australia construction sector is failing to handle. There are so many workers who have received slash down in the hours of work. In fact, some proficient workers do not get additional time to work to boost the productivity. On this note, the industry is displaying a slow or reduced production solution.

Safety On Site:

Another crestfallen problem that the Australia construction sector is encountering is safety on site. This is high demand for insurance and compensation claims to serious injuries. Since the industry is spending more on insurance and compensation, there will not be enough funds to boost productivity.

Skilled Labour Shortages:

Skilled labour shortages should not be underestimated when talking about the problems facing the Australia construction industry. The nation is unable to produce enough skilled or professionals who have the ability and knowledge to handle the job. Through these shortages, the industry will not be able to effectively operate with fewer skilled workers.

Capital Supply Constraints:

It is clear that more conservative measure to lending by the banks limits investor confidence due to increased difficulty and recession in access credit. This point has explained itself. Based on the current problem that the Australia construction sector is facing, it is difficult for money lending firms to extend their hands of service. This is because almost all the lending services in the nation have lost confidence in borrowing construction firms’ fund.



Environmental issues also play a great negative spot for the Australia construction sector. There are other factors that directly affects the industry. The main thing to know is how to get these problems solved. This will help the industry to experience a boon again.