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Construction Costs of Major Projects

Industry Commission inquiry report

This report was signed on 22 February 1991.

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Contents

Preliminaries
Cover, Copyright, Signing Page, Acknowledgement, Contents, Abbreviations, Terms of Reference

1 Overview and Findings
1.1 Industrial relations
1.2 The approval process
1.3 Australian participation
1.4 Project management
1.5 Other issues
1.6 Findings

2 The Inquiry
2.1 The importance of construction costs
2.2 Coverage of the reference
2.3 The Commission's approach
2.4 Outline of issues

3 The Nature of the Inquiry
3.1 Construction activity in Australia
3.2 Outline of a construction project

4 Management and Risk Allocation
4.1 The formal contract
4.2 Allocating risks and responsibilities
4.3 Improving project management

5 Capital Costs and Performance
5.1 Capital costs
5.2 Competitiveness
5.3 Capital costs and competitiveness

6 Regulation and Approvals for Building and Development
6.1 Introduction
6.2 The regualtion and approval process
6.3 Problems associated with the regulation and approval process
6.4 The Commission's view

7 Industrial Relations in the Construction Industry
7.1 Industrial relations problems
7.2 Characteristics of the industry contributing to industrial relations problems
7.3 Current changes in industrial relations in the construction industry
7.4 Options for change

8 Australian Participation
8.1 Participant's views
8.2 Current levels of Australian participation in major projects
8.3 The Commission's view

9 Other Factors
9.1 Infrastructure costs
9.2 Tariffs and tariff concessions
9.3 Taxation
9.4 Transport and modular construction costs
9.5 Interest costs
9.6 Worker's compensation arrangements

10 Implications of Microeconomic Reform for the Construction Industry
10.1 Reforms to construction
10.2 Reforms examined in the 1988-1989 Annual Report

APPENDICES

A Participants who made written submissions

B Productivity of the construction industry

C Industrial relations

D Industry cross-subsidies in workers' compensation

E Comparative capital costs

References

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