construction

What is holding back Australia’s construction industry? An overview

Australia is a developed country and a developed progressive economy. However, like most developed countries, it faces problems of its own too. Apart from shortages of labor and skills in construction, most construction workers’ jobs are filled by temporary workers or by unskilled immigrants who later end up on social security.

The construction industry around the world has both differences and similarities. It has its own share of drawbacks, problematic activities, outdated processes, and much more. It gets worse; following the COVID-19 pandemic, a lot of construction projects around the world slowed down. 

Many were incomplete and construction companies faced the prospects of bankruptcy and closure due to outstanding debts piling up.

How bad is the situation of construction in Australia?

The Royal Institute of Chartered Surveyors (RICS) publishes data and information regarding the Australian construction industry. It does so via findings of the Global Construction Monitor Survey. It provides an overview of current conditions and annual expectations in major construction marketers worldwide. Their recent report surveyed almost 3,040 construction companies around the world.

When it comes to Australia, the report concluded that the broad construction market is cooling and easing. However, the market generally remained buoyant. The construction market activity index for Australia eased from +13 in September to +10 in December last year.

What has the Australian construction market suffered from, Despite the indices indicators?

Sorry to say the construction industry in Australia has suffered from high rates of workplace accidents leading to disabilities and fatalities. This is something quantum analysis professionals attest to, especially after experiencing the Australian construction market.

Though improvements were made in most safety standards, The number of accidents resulting in disabilities and fatalities has taken headlines. In fact the industry continues experiencing a huge amount of incidents in comparison to other industries.

The only way this problem can be curtailed is through an improved understanding of the major causes of accidents and challenges the industry faces. This can help reduce accidents and incidents leading to improved workplace safety for most Australian construction workers.

Why do such a high number of accidents take place in the Australian construction industry? The reasons

There are many factors that contribute to a large number of accidents in Australia’s construction industry. Among them are:

  • A lack of proper training programs for construction workers.
  • Inadequate safety equipment.
  • No training for using such equipment.
  • Harsh working conditions.
  • Failure of employers to give worker safety a priority.

The construction industry is fast-paced. This results in numerous shortcuts during work and a lot of workers find latent ways of getting work done. Unfortunately, in this manner, numerous safety measures are also overlooked.

Another reason why construction accidents are high in Australia is due to the rapid pace of infrastructure development. Large-scale projects are being undertaken across major rural and urban centers in Australia which create a high demand for skilled construction workers. 

This leads to inexperienced and fringe workers getting employed as experienced ones either change fields or move up the ladder. The culture of long working hours and unrealistically tight deadlines leads to fatigue and compromise on safety. This leads to more accidents happening.

There is also another problem. Subcontracting throughout the industry has created challenges in making sure safety practices are consistent and uniform across all construction sites.

Are there any legal requirements present in terms of workplace safety in Australia’s construction industry?

There are numerous legal requirements for workplace safety in Australia’s construction industry. These requirements and policies are present in the Work Health and Safety Act 2011 (which was updated in April 2022). 

This act specifies the responsibilities of employers and workers ensuring workplace safety regulations are met. It further ensures specific regulations regarding the construction industry are fulfilled. The National Code of Practice for the Prevention of Falls in Housing Construction is another one that also regulates worker safety in the construction industry.

Construction companies failing to comply with such requirements will face legal action and penalties, which can also be prison sentences. This can have quite a toll on construction companies as well as contracting companies, in terms of finances and reputation.

Are any measures being taken to improve safety in Australia’s construction industry?

There are numerous measures Australian authorities are taking to improve safety in the Australian construction industry. Among them are: 

  • Mandatory safety training sessions for construction workers.
  • More robust safety regulations. 
  • Implementation of safety management systems by employers.

Many industry groups and unions are also working hard to raise awareness about workplace safety and its importance. This helps in the promotion of safe working practices via campaigns like the National Safe Work Month. This happens in October every year.

Any cases of construction claims?

Cases of construction claims in Australia are complicated. As the term itself is complex, dispute avoidance experts and claims consultant Dubai usually find it challenging to help address the cause of claims.

The Australian market is complex. Thanks to the presence of robust laws and regulations, things are still solvable and cases of construction claims are resolved. Then again, they take a lot of time. Australia’s Government urged courts to tackle these cases in the earliest possible time margin.

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