Resources for Reconstruction
Pulse Report - December 2011
Last summer, Queensland weathered the worst set of natural disasters in the State’s recorded history resulting in a state-wide reconstruction program, unprecedented in its scale and scope.
This Pulse Report is the first in a series of updates on the progress of reconstruction works around Queensland, the impacts on and opportunities for industry, its flow-on effects on communities, and growing pressure on human and material resources. The update follows the Queensland Reconstruction Authority’s (the Authority) September 2011 Resources for Reconstruction Discussion Paper
Reconstruction program reaches $3.56 billion
Recovery work across Queensland is progressing well. As at December 2011, there was almost $755.7 million of projects completed, a massive $1.965 billion in projects underway or out to tender and a further $834.3 million being prepared for market.
Further information about reconstruction activity around Queensland can be seen at the Authority’s project pipeline and photo gallery map at www.qldreconstruction.org.au/maps.
98% local labour and materials for local government works
In November 2011, following analysis of a sample of completed local government counter disaster operations and emergent works projects, it is estimated that about 98 per cent of the value of the works has been undertaken locally, either by existing council resources or by engaging local contractors.* Generally, councils are using existing contractors through standing-offer arrangements and are also employing additional staff to manage the increased workload. For larger and more technically demanding projects, work is tendered to the broader market.
*A local contractor is a contractor with a permanent presence in a region or a contractor who has worked continually in a region for more than five years.
Bulloo Downs Road restoration works completed by a contractor and supervised by Bulloo Shire Council
85% local labour for State Transport Network Reconstruction Program (TNRP)
As at November 2011, $1.602 billion (205 projects) of the State Transport Network Reconstruction Program (TNRP) was either underway or completed across the State.* Of this value, 85 per cent ($1.367 billion) of the works have been delivered by local contractors. The majority of the remaining 15 percent ($240 million) of the work is being delivered by Queensland-based contractors.
The TNRP procurement approach is designed to build on existing local and regional supplies in both the public and private sectors. The Department of Transport and Main Roads provides regular briefings to local councils and the construction industry about future works, allowing partners to better position themselves to deliver in the locations and the quantities required.
As at November 2011, the TNRP pipeline of works was distributed as follows:
|Local councils||approximately 15%|
|Open tender||approximately 55%|
Regional pressure points
Projected State road expenditure in the regions of Fitzroy, South West and Mackay-Whitsunday represents around 44 per cent of the total state-wide costs. The Bowen Basin and the Surat Basin have a concentration of the 31 major mineral and energy sector projects due to start-up from 2011 through to 2015, in line with the projected peak of reconstruction works. This signals a growing demand for human and material resources in these hot spots and increased competition with demand for skilled and unskilled labour at a premium.
The Authority will continue to engage with councils and industry stakeholders to identify areas where there is pressure on supplies of adequate materials.
If deemed necessary, the Authority will consider use of its powers to speed up both State and local government approval processes.
15,000 jobs supported
It is estimated that the reconstruction of State and local government roads and assets through to 2013-14 will support more than 15,000 jobs around the State.
The use of local contractors continues to deliver economic benefits to the regions. As well as new employment opportunities, local contractors are being awarded contracts for road rebuilding, with contracts for the provision of goods and services generated by the rebuilding works program continuing to deliver economic benefits to the local area for the life of the reconstruction works.
Local contractors reconstruct Blackbutt Range
Throughout much of 2011, the Transport Network Reconstruction Program team in the North Coast Region has been working closely with VDM Construction (Eastern Operations) to rebuild the D’Aguilar Highway through the Blackbutt Range.
In January 2011, the highway through the range, which is an important freight and travel route for the South Burnett and Somerset communities, was closed due to major landslip damage along a 2.5km stretch.
After initial emergency repairs by the Somerset Regional Council, which included the construction of a side track around the worst of the landslips to re-open the road to a single lane operation, VDM Constructions came on board for the recovery and reconstruction stages.
The South East Queensland-based arm of VDM Construction has been undertaking massive earthworks to re-open the highway to two lanes. During this time, the contractors on this site are living, socialising and spending money in nearby towns, becoming part of the community.