Construction is booming but needs improvement

December 16, 2015 by Mr Job Done

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Business First Magazine recently wrote an article about the booming Australian Construction industry; however, there are rising concerns about the ever increasing costs of contract disputes.

 

Contract disputes are on the rise!

 

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constructionAustralia’s $300 billion construction industry is booming, with the latest ABS data revealing building approvals increased by 13.1% since August 2014, the largest annual increase on record.

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However, industry experts have expressed concern that this rate of growth will be hampered by an increasingly costly burden on the construction sector – contract disputes.

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A CRCCI study put a dollar figure to the problem stating that these disputes are costing the Australian economy around $7 billion a year, adding 6 per cent to the coverall cost of each project.

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According to construction experts, contract disputes are a result of outdated, manual methods of processing progress claims including spreadsheet reconciliations and paperwork.

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“The construction industry plays a most significant role in our economy as the third largest contributing industry, so it’s important that we adopt methods to streamline efficiencies where possible to increase productivity,” said Brian Seidler, Executive Director of the Master Builders Association of NSW.

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To address the problem, former construction company CFO Lincoln Easton recently launched Progressclaim.com software tailor-made for the construction industry to process payment claims anytime and anywhere.

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“As we’ve seen in several recent public disputes, the archaic methods of processing progress claims are causing inaccuracies, disputes and hold-ups on the build – impacting our broader economy,” he said.

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In recent months, a number of legal rows over payments have led to construction being interrupted or coming to a total standstill on major public projects, such as the Perth Hospital and the Wiggins Island Coal Export Terminal.

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“With residential and commercial construction predicted to grow exponentially over the next few years to cater for Australia’s population boom and major infrastructure upgrading, how the contracting parties deal with various payment processes needs to be resolved,” said Mr Seidler.

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The article was originally written in Business First Magazine. You can find it at your local newsagent or subscribe at: http://www.businessfirstmagazine.com.au/subscribE

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"What used to take me two days, now takes me two hours. Because Progressclaim.com is online, adminstration of the monthly payment claim cycle is less time consuming and much easier to manage. No more processing everything on a spreadsheet prone to error, and the assessment can be carried out at the touch of a button."

PAUL LINKE

Contract Administrator, BUILT