LOAD 28 NEWS
EARLY SUB-CONTRACTOR INVOLVEMENT VITAL TO MEET GROWING DEMAND IN INFRASTRUCTURE
South Australia is experiencing a surge in construction, leading the nation as number one in Australia for growth in residential construction activity.
We are witnessing the State Government’s commitment to meet the increasing demand for affordable and social housing, commercial premises and infrastructure take effect, with building activity only predicted to increase in 2025.
In its 2024-25 State Budget, the Malinauskas Government committed $843.6 million to tackle the housing crisis and assigned $25.6 billion over four years for total public infrastructure on major projects including the North – South Corridor, Women’s and Children’s Hospital and Flinders Medical Centre.
There is no doubt that 2025 is going to be a massive year for the South Australian construction industry as it works towards delivering on the State Government’s economic goals.
The pressures we will continue to face seem obvious, such as the ongoing labour and skills shortage, building material supply shortages and cost increases.
However, as a leading sub-contractor providing equipment hire and services to the construction industry, we foresee the not so obvious challenges, and this includes the securing of equipment for major projects.
Over the past six months, our business has been busier than ever providing quotes and engineering and design proposals for the industry for tower cranes, mobile cranes, construction hoists and loading decks on projects set to commence work in 2025. The magnitude of work is substantial.
To best support the industry and our clients during such a busy time, we need to be prepared; ensuring we have the right people, that our people are adequately trained, and that we have the equipment our clients require, and early project engagement plays a vital role in our ability to deliver this.
We believe that it has never been more necessary for builders to look at Early Sub-Contractor Involvement (ESCi) to provide them confidence that they can deliver on project objectives and deadlines.
Shorter sub-contractor lead times could result in the equipment and / or correctly skilled people not being available, and builders forced to source from interstate. Higher costs and potential delays would be imminent. It also means the work and the money doesn’t stay in our state.
In 2023, the Malinauskas Government made major changes on how public money is spent on the purchase of goods and services each year to deliver on its election commitment to increase support to local businesses and jobs through government procurement.
The Government’s reforms saw an initial target to increase the amount spent on SA businesses instead of interstate and overseas suppliers by 5 per cent – which is set to inject an extra $425 million into the state’s economy.
According to SA Treasurer Hon. Stephen Mullighan MP “Nearly eight out of every nine workers in SA are employed by business – we should be supporting local suppliers and local jobs wherever possible.”
“Awarding South Australian contracts to South Australian businesses, and keeping those dollars in our state, is a no-brainer. It means more jobs, more opportunities, and a stronger economy,” Hon. Stephen Mullighan MP said.
It isn’t just the state government’s duty to ensure the work stays in our state. The continued growth of the South Australian construction industry and the state’s economy relies upon all of us working closely together. Having earlier sub-contractor involvement in the project timeline benefits all parties and results in a better probability for successful project outcomes.
Marcus Rigney
Managing Director
Load 28
