CONSTRUCTION INDUSTRY – AUSTRALIA

Construction insolvencies approach decade high

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Original article by Michael Bleby
The Australian Financial Review – Page: 29 & 31 : 19-Apr-23

Data from the Australian Securities & Investments Commission shows that there were 524 insolvencies in the construction sector in the March quarter and 1,601 in the first nine months of 2022-23. Australian Restructuring Insolvency & Turnaround Association CEO John Winter says the number of insolvencies in the sector is on track to exceed the decade-high of 1,802 recorded in fiscal 2014. He adds that the residential construction sector is suffering a severe hangover after years of a surge fuelled by cheap credit.

CORPORATES
AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN RESTRUCTURING INSOLVENCY AND TURNAROUND ASSOCIATION

Dozens more cases expose CFMEU to maximum fines

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Original article by David Marin-Guzman
The Australian Financial Review – Page: 5 : 19-Jan-23

Court records show that the Fair Work Ombudsman is currently handling 35 open cases involving the Construction, Forestry, Maritime, Mining & Energy Union. This includes five appeals launched by the CFMEU and one appeal that was instigated by the defunct Australian Building & Construction Commission. The ABCC’s case load was transferred to the FWO after the building industry watchdog was abolished in late 2022. Steven Amendola of law firm Kingston Reid says the CFMEU could potentially face total fines in excess of $5m if judges impose maximum or near-maximum penalties in each case.

CORPORATES
CONSTRUCTION, FORESTRY, MARITIME, MINING AND ENERGY UNION OF AUSTRALIA, AUSTRALIA. FAIR WORK OMBUDSMAN, AUSTRALIAN BUILDING AND CONSTRUCTION COMMISSION, KINGSTON REID

Clough on the brink amid fresh contract blowouts

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Original article by Nick Evans, Perry Williams
The Australian – Page: 17 : 18-Oct-22

Murray & Roberts has advised the Johannesburg Stock Exchange that cost blowouts at the Waitsia gas project and a petrochemicals plant in Texas will reduce its profit for the six months to December. The company’s Australian subsidiary Clough is undertaking engineering work on the two projects, and Clough CEO Peter Bennett has advised staff that the contractor’s financial position has worsened since an update in early September. He also said Clough and its parent are looking at options for the company. Clough recently opened a data room for prospective buyers of the business, while sources have indicated that voluntary administration may also be an option.

CORPORATES
CLOUGH LIMITED, MURRAY AND ROBERTS HOLDINGS LIMITED, JOHANNESBURG STOCK EXCHANGE

Women in construction still battling glass ceilings

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Original article by Ewin Hannan
The Australian – Page: 4 : 8-Nov-21

A survey of male and female construction workers by recruitment and human resources firm Randstad found that females believe that there are many barriers to them entering the sector, including workplace culture and a lack of gender diversity. The survey revealed that the level of discrimination reported by female construction workers has fallen in the last two years; the most common form of discrimination they experienced was inappropriate comments or behaviour from male colleagues.

CORPORATES
RANDSTAD RECRUITMENT PTY LTD

Swan as new Cbus chairman an ‘insult to workers’: CFMEU

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Original article by David Marin-Guzman
The Australian Financial Review – Page: 2 : 8-Sep-21

The Construction, Forestry, Maritime, Mining & Energy Union has described the appointment of former Labor minister Wayne Swan as chairman of industry superannuation fund Cbus as the "height of hypocrisy". The CFMMEU says the appointment is an "insult to construction workers", given Swan’s role in maintaining the building industry watchdog during his tenure as federal treasurer and deputy prime minister. The union has also suggested that there is a conflict of interests due to Swan’s role as Labor’s national president.

CORPORATES
CONSTRUCTION, FORESTRY, MARITIME, MINING AND ENERGY UNION OF AUSTRALIA, CONSTRUCTION AND BUILDING UNIONS’ SUPERANNUATION FUND

Grocon on brink of administration

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Original article by Ben Wilmot
The Australian – Page: 13 & 14 : 23-Nov-20

Troubled construction company Grocon was said to be in talks over the weekend of 21-22 November about the appointment of administrators, although no move has yet been made. Grocon has been involved in a number of disputes in recent times, including with Infrastructure New South Wales, against which Grocon has launched a $270 million legal action. Grocon head Daniel Grollo recently said that its creditors would be "first in line" to be paid if it wins its action against Infrastructure NSW. Grocon’s latest problems relate to a project in Melbourne, where it is said that sub-contractors are owed around $8 million. Grocon is building a tower for Impact Investment under a fixed-price contract, and claims that it has not been paid by Impact since May.

CORPORATES
GROCON PTY LTD, INFRASTRUCTURE NEW SOUTH WALES, IMPACT INVESTMENT GROUP PTY LTD

Construction down by $5b over two years

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Original article by Michael Bleby
The Australian Financial Review – Page: 39 : 5-Nov-20

The Australian Construction Industry Forum has forecast that construction activity will fall by 3.2 per cent in 2020-21 due to the impact of COVID-19. Construction work in the accommodation sector is tipped to fall by 34 per cent, while a 23 per cent decline in entertainment and recreation projects is expected. However, the ACIF expects an increase in construction work in the industrial property, health and aged-care sectors. Activity in the residential construction sector is expected to remain subdued for several years, but growth in home renovations is forecast.

CORPORATES
AUSTRALIAN CONSTRUCTION INDUSTRY FORUM

Watchdog probes sabotage claims at Probuild, Watpac

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Original article by David Marin-Guzman
The Australian Financial Review – Page: 10 : 28-Oct-20

The Australian Building & Construction Commission has informed a Senate estimates hearing that it is investigating work stoppages at building sites in Sydney. The New South Wales branch of the Construction, Forestry, Maritime, Mining & Energy Union has cited safety issues as the reason for the industrial action that has targeted Probuild and Watpac. The safety blitz has coincided with the CFMMEU’s push to get the two companies to sign a new enterprise agreement. The proposed pay deal includes annual pay rises of five per cent and revised arrangements for rostered days off.

CORPORATES
AUSTRALIAN BUILDING AND CONSTRUCTION COMMISSION, CONSTRUCTION, FORESTRY, MARITIME, MINING AND ENERGY UNION OF AUSTRALIA, PROBUILD PTY LTD, WATPAC LIMITED

Virus slowdown: call to waive penalty rates

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Original article by David Marin-Guzman
The Australian Financial Review – Page: 7 : 9-Jul-20

The Master Builders Association and the Housing Industry Association want the Fair Work Commission to make temporary changes to the construction industry award in response to the coronavirus pandemic. The Construction, Forestry, Maritime, Mining & Energy Union opposes any move to vary the award so construction workers do not receive penalty rates for working outside their regular hours. Richard Crookes Constructions is among the building firms that have expressed support for temporary changes to the award.

CORPORATES
MASTER BUILDERS AUSTRALIA INCORPORATED, HOUSING INDUSTRY ASSOCIATION LIMITED, CONSTRUCTION, FORESTRY, MARITIME, MINING AND ENERGY UNION OF AUSTRALIA, AUSTRALIA. FAIR WORK COMMISSION, RICHARD CROOKES CONSTRUCTIONS PTY LTD

Council brakes slow recovery

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Original article by Rebecca Urban, Damon Johnston
The Australian – Page: 1 & 4 : 11-Jun-20

Federal Treasurer Josh Frydenberg says local councils should fast-track development applications in order to stimulate economic activity in the post-coronavirus world. He says the state and federal governments are helping to boost the construction sector, and local governments should do so as well. It takes an average of 70 days for development applications to be approved in Victoria – well above the statutory requirement of 60 days – and this had blown out to at least 120 days for some councils prior to the pandemic. The average number of days to approve a development application in New South Wales is 84 days.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY