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what’s news in construction & infrastructure?
latest news 28 may 2008
Commonwealth
Leighton says full-year profit to grow over 30%
15 May 2008
Leighton Holdings has confirmed that full-year profit
will grow more than 30% to a record, boosted by projects in India and the
Middle East. The company won contracts in Asia and Australia worth over $2.8
billion during the March quarter, with construction of an offshore pipeline and
coal mine in India making up over half the total. more...
Private sector projects set to top $92b
24 May 2008
A record high of about $92.3 billion is forecast for the
total value of construction by the private sector next year, according to the
Australian Industry Group (AI Group), and Australian Constructors Association
(ACA) Construction Outlook survey. The survey predicts that the total value of engineering
and commercial construction work will increase by 12.5% this year and growth in
engineering construction was expected to be led by the sectors of road and rail
infrastructure, power generation, water supply, mining, oil and gas processing
facilities and other civil project and telecommunication developments. more...
Blow for ACCC in boycott case
17 May 2008
2 union officials, who wanted a major building company
not to use a supplier who happened to be hiring non-union labour, have escaped
prosecution under secondary boycott laws. The decision is a blow to the
Australian Competition and Consumer Commission, which had used the case to
signal a tougher approach to attempts to engage in anticompetitive behaviour.
The ACCC had also wanted to send a message that unions faced the same rules as
big business. more...
Future budgets to top up infrastructure fund: Albanese
13 May 2008
Federal Infrastructure Minister, Anthony Albanese, says
‘the Government could use future budgets to boost 3 new investment funds
announced in last night's Budget’. The $20 billion in the infrastructure fund
is yet to be allocated to any specific projects but Treasurer, Wayne Swan, says
‘it will fund things like roads, rail, ports and broadband connections’. more...
Too little national action to unclog cities
15 May 2008
Australia’s infrastructure providers have called on the
states and federal Government to bring a new urgency to the country's worsening
infrastructure problems by fast-tracking projects and to stop blaming labour
shortages for the problems. The chief executive of John Holland, who has just overseen
the construction of Melbourne's $2.5 billion EastLink motorway project, said
the Rudd Government should be commended for committing $20 billion to the
Building Australia Fund. more...
Victoria
Melbourne 2030 Audit Government Response - Planning
for all of Melbourne
22 May 2008
The Victorian Government has released its response to
the Melbourne 2030 Audit Report - Planning for all of Melbourne. The
Government's Response was informed by the independent Audit Expert Group's
Report, Whole of Government analysis, 2006 Census data and over 200 public submissions.
The conclusion of the audit marks a new stage in the Government's plan for all
of Melbourne. View the Government's Response, Fact Sheets and the Audit Expert
Group's Report at the Planning for all of
Melbourne page. more...
Moving towards national consistency in Construction
Induction Training
12 May 2008
In a significant move towards national consistency, WorkSafe
Victoria has mandated the National Code of Practice for Induction for
Construction Work. The National Code of Practice for Induction for Construction
Work was declared by the Australian Safety and Compensation Council (ASCC) in
July 2007. At this meeting, ASCC members committed to having nationally
consistent induction training by 1 July 2008. more...
State’s move on planning under attack
22 May 2008
Councils and community groups have slammed the State
Government's move to seize planning control of Melbourne's biggest commercial
and retail precincts in its bid to stimulate large-scale residential
development. The Government will establish Development Assessment Committees for
26 designated activity zones, after targeting 5 centres, Preston, Camberwell,
Coburg, Doncaster and Geelong, this year. It will also simplify planning
controls, with the introduction of activity centre zones, while new housing
targets will be set for each municipality. more...
New South Wales
NSW wind farm
13 May 2008
A 63 turbine wind farm at Queanbeyan will provide Sydney's
desalination plant with 100% renewable (green) energy. Babcock & Brown Wind
Partners and Babcock & Brown Power has been selected by Sydney Water as
preferred tenderer to power the Desalination Plant. more... more...
Receivers and managers appointed to Beechwood
Homes
14 May 2008
On Wednesday, 14 May, following the appointment of
voluntary administrators by the Directors of Beechwood Homes on Tuesday 13 May,
David Lombe and Chris Campbell from the Deloitte Corporate Reorganisation Group
were appointed by a secured creditor as Receivers and Managers of Beechwood
Homes, being made up of L.E.D. Builders Pty Limited, L.E.D. (North Coast) Pty
Limited, L.E.D. (South Coast) Pty Limited (All Receivers and Managers
Appointed) (In Administration). more...
Beechwood Homes - Homeowners not to panic
14 May 2008
NSW Fair Trading Minister, Linda Burney, today urged
clients of Beechwood Homes not to panic following news that the company had
gone into voluntary administration. The administrators, Armstrong Wiley, are
looking to engage other builders to complete current projects under contract
with Beechwood Homes franchises. more...
Planning laws to protect major NSW ports
20 May 2008
The 3 major ports, Newcastle, Botany and Port Kembla,
are proposed to be identified as State Significant Sites to recognise their
economic importance and provide greater consistency of operation. Planning
Minister, Frank Sartor, said “the proposed State Significant Site (SSS)
listings detail projects on the 3 port sites that would automatically come to
the Government for assessment under the State’s major projects legislation”. more...
Queensland
Brisbane's $300m Trilogy tower campaign fails
15 May 2008
The campaign to sell the $300 million office component
of one of Brisbane's planned super towers, Trilogy, has failed, but
developer APH Capital Partners says it will push ahead with the 70-level
project. The credit crisis and near collapse of several big property companies
in December and January came just after APH went to the market seeking a buyer
for its unlet, yet-to-be-built office space. With funding difficult in the wake
of the credit crisis, analysts believe many of the developments proposed for
Brisbane will fail to materialise. more...
CBD skyscraper loses 215 windows – and counting
14 May 2008
Council briefing notes show 215 windows in Waterfront
Place on Felix Street in the CBD have shattered in the past 18 years and 400 of
the building's 4000 glass panels were replaced in about 1996. Brisbane City
Council has issued building owner Stockland with an order to take all possible
safety precautions. A report the company prepared on the problem was given to
council late last year which predicted 8 more windows would break over the
building's life because of an impurity in glass treated with a toughening
agent. more...
COAG meeting will be big budget test
14 May 2008
Queenslanders will have to wait until after March 2009
to get a true picture of whether it gets a better infrastructure deal from the
Rudd government. The new Building Australia Fund will be finalised by 1 January
2009 and the projects will be defined at the first Council Of Australian Governments
(COAG) meeting in March 2009, with the priorities for the projects set by Infrastructure
Australia. Queensland will receive $826 million in road and rail projects over the
next 4 years. more...
West End: Newman backs high-rise
23 May 2008
Developers have been given the green light for high-rise
buildings of more than 30 stories on the city fringe. Brisbane City Council
this week voted unanimously for greater heights and densities in West End,
Fortitude Valley, Woolloongabba, South Brisbane and the Kurilpa precinct. more...
Infrastructure corridor declared
21 May 2008
Deputy Premier and Minister for Infrastructure and Planning,
Paul Lucas, today announced the declaration of a 90 kilometre infrastructure
corridor from Stanwell to Gladstone as a State Development Area. The corridor
will house pipelines capable of transporting water, gas and mineral slurries or
shielding telecommunication cables. more...
LNG industry in the pipeline
21 May 2008
The State Government is examining extending the Gladstone
State Development Area to take advantage of Queensland’s vast coal seam gas reserves.
The extension is being considered to secure land for potential LNG projects, or
other industry, plus buffer zones and management areas. Already 5 major groups
are investigating the feasibility of establishing processing plants in Gladstone:
Santos, LNG Limited/Arrow, Sunshine Gas/Sojitz Corporation of Japan, LNG Impel
and BG/ Queensland Gas Company. more...
Over 100 new high-rise towers a year for SEQ not
feasible: Property Council
22 May 2008
The Property Council is calling for assumptions on infill
targets in South-East Queensland’s Regional Plan to be reconsidered. Property
Council of Australia’s Queensland Executive Director Steve Greenwood says 104
new high-rise towers were needed each year for 20 years if current targets were
to be met. more...
Partner sues CEC
22 May 2008
Jilted development partner Consolidated Properties has
launched Federal Court action seeking damages up to $1 million from
cashstrapped CEC over their aborted joint venture property deal. Consolidated
lodged a statement of claim yesterday seeking recovery of hundreds of thousands
of dollars it claims it spent on pursuing a deal with CEC on the proposed joint
venture to develop 8000 residential lots between Townsville and Cairns. more...
Plan for early resumption of stalled Moggill Road
upgrade project
20 May 2008
Work on the stalled $14 million Moggill Road upgrade
will resume as soon as new contracting arrangements are in place the Main Roads
Minister, Warren Pitt, has announced. At this stage it is likely Main Roads
will take over running the project, retaining all the existing subcontractors on
the job. more...
State moves to recoup contamination cleanup costs
15 May 2008
The Queensland Government is to tighten legislation to
recover costs incurred from clean up operations following accidents which cause
environmental damage and contamination. Legislation will be introduced to make
landholders potentially liable for clean up costs as well as any business
operating from the site. If the original recipient is a company and fails to
comply with the notice, the notice can also be issued to a director or parent
company. more...
Tunnel pain for top suburbs
23 May 2008
The Brisbane City Council's planned Northern Link tunnel
will burrow under some of Brisbane's most expensive suburbs, raising fears
about its impact on home valuations and what compensation will be offered. The
council's concept design plan for the 4.7km tunnel will also include
ventilation stacks next to the Mt Coot-tha Botanical Gardens at Toowong. more...
Watpac and Seymour Group win $800m Hervey Bay
redevelopment
21 May 2008
Deputy Premier and Minister for Infrastructure and Planningm,
Paul Lucas, has announced the $800 million project with Watpac and Seymour
Group appointed as preferred developer for the redevelopment of Hervey Bay's
Urangan Boat Harbour. Watpac/Seymour estimates that the redevelopment will
generate in excess of 600 jobs during the 4 year construction phase and approximately
200 jobs once completed. more...
Leighton consortium wins $4b Brisbane airport link
20 May 2008
Leighton Holdings Ltd announced the BrisConnections
consortium, which includes Thiess Pty Ltd and John Holland Group Pty Ltd, Macquarie
Capital Group Ltd, Arup and PB, is the preferred tenderer for the $4 billion
airport link project. more...
Premier gives the green light to Australia’s largest
road project
19 May 2008
The State Government has pressed the go button on
Australia’s largest road infrastructure project to cut congestion and fix one
of Brisbane’s most notorious bottlenecks. Today Premier Anna Bligh and Deputy
Premier Paul Lucas announced BrisConnections as the preferred bidder to build Airport
Link, the next section of the Northern Busway and a new fly-over road to fix
the gridlocked airport roundabout. more...
legislation
Queensland
Acts
Mineral Resources (Peak Downs Mine) Amendment Act 2008
National Gas (Queensland) Act 2008
Regulations
Mineral Resources Amendment Regulation (No. 3) 2008
New South Wales
Bills introduced
Building Professionals Amendment Bill 2008
Environmental Planning and Assessment Amendment Bill
2008
New South Wales (continued)
Bills passed by both Houses of Parliament
Mining Amendment Bill 2008
Acts assented to
Gas Supply Amendment Act 2008
Regulations
Mine Subsidence Compensation Amendment (Contributions)
Regulation 2008
Building and Construction Industry Security of Payment
Regulation 2008
Occupational Health and Safety Amendment (Licensing of
Asbestos Removal and Demolition Work) Regulation 2008
publications/conferences
Infrastructure moves into the 21stcentury
Author: Romain, Michelle
Source: Property Australia,
Vol 22(8): May 2008; pp46-49
Subject: The new Federal
Government has hit the ground running with the introduction of Infrastructure
Australia, an initiative that could change the pace and structure of
infrastructure development.
NSW: Building circular - Building Code of Australia
2008 amendment
13 May 2008
This circular is to advise local councils, accredited certifiers,
relevant government agencies and industry practitioners of certain changes to
the Building Code of Australia with the 2008 amendment and other BCA matters.
The changes take effect in NSW from 1 May 2008. more...
cases
A Goninan and Co Ltd v Direct Engineering
Services Pty Ltd (No 2) [2008] WASCA 112
Contract - building contract between proprietor and
head contractor - head contractor obliged to effect and maintain various
insurances throughout the term of the building contract - whether head contractor's
obligation extended to the provision of insurance cover for its subcontractors –
clause imposing obligation on head contractor ambiguous - whether the deletion
of an insurance clause from a standard or common form building contract may be
referred to as an aid to construing the ambiguous clause. Insurance - insurance
policy -subcontractors will bi insured under the policy only if they are
persons, organisations or entities to whom the head contractor is in writing
obliged to provide insurance - whether the building contract between the
proprietor and the head contractor imposed such an obligation on the head contractor. Held:
Appeal allowed. WASCA found preferable construction of head contract cl 11(d) and
(e) obliged respondent to obtain insurance against liability of sub-contractors
such as appellant. Preferable construction established WASC erred by failing to
find appellant indemnified by head contract insurance.
Legislation cited: Insurance Contracts Act 1984 (Cth)
s 48. Motor Vehicle (Third Party) Insurance Act 1943 (WA) s 4(1). Occupiers'
Liability Act 1985 (WA).Workers' Compensation and Injury Management
Act 1981 (WA) s 160, s 175.more...
Brian Leigh Smith & Anor v Coastivity
Pty Ltd [No.2] [2008]
NSWSC 450
Costs - follow the event - no question of principle.
Building and Construction Industry Security of Payment
Act 1999
Cassegrain v CTK Engineering; Cassegrain v Cassegrain [2008] NSWSC 457
Costs - assessment - costs assessor – review panel -
adequacy of reasons - basis of assessment of all disputed costs must be explained
- statement of reasons must be sufficiently precise to give meaningful content
to rights of appeal - sufficient to specify how disputed costs of the same kind
were treated - failure to provide sufficient reasons. Practice and procedure -
joinder of members of costs review panel as defendants.
Direct Engineering Services Pty Ltd v A Goninan
& Co Ltd [2006]
WASC 105
Contract - building contract between proprietor and head
contractor - head contractor obliged to effect and maintain various insurances
throughout the term of the building contract - whether head contractor's
obligation extended to the provision of insurance cover for its subcontractors –
clause imposing obligation on head contractor ambiguous - whether the deletion
of an insurance clause from a standard or common form building contract may be
referred to as an aid to construing the ambiguous clause. Insurance - insurance
policy - subcontractors will be insureds under the policy only if they are
persons, organisations or entities to whom the head contractor is in writing
obliged to provide insurance - whether the building contract between the
proprietor and the head contractor imposed such an obligation on the head
contractor.
The Owners Corporation of Strata Plan 62254
v Rockdale City Council [2008]
NSWSC 392
Tort - negligence - breach of statutory duty - common
law duty of care - statutory authority - essential fire services - effective
height - development application - sprinklers – occupation certificates -
factor of control – Wednesbury unreasonableness - control of a structure –
selfimposed duty to take positive action. Standing of Owners Corporation to
bring proceedings. Held:Council liable for negligence and breach of statutory
duty - matter to be referred to a referee to determine damages. more...
Brewer v King [2008] NSWSC 459
Building contract - failure to complete work - payments
- summons dismissed; plaintiff to pay the costs of the proceedings.
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