Construction industry boss slams Rockhampton Ring Road project cost blowout

An Australian construction industry boss has slammed the Queensland Government, saying most of the cost blowout with the Rockhampton Ring Road project was avoidable. Full details here.

Australian Constructors Association chief executive officer Jon Davies and (inset) an artist's impression of a proposed third bridge over the Fitzroy River.

An Australian construction industry boss has launched a scathing attack on the Queensland Government following revelations the $1.1 billion Rockhampton Ring Road project will not be delivered on time due to a massive cost blowout.

It was exclusively reported by this publication on Saturday that a perfect storm of surging construction supply costs and decisions around employee agreements had contributed to tender quotes for the project blowing out by $700 million.

On Monday, Federal Transport and Infrastructure Minister Catherine King confirmed the project, including a third bridge over the Fitzroy River, would not be delivered on time by 2026.

Construction was meant to start later this year.

The project is jointly funded by the Australian and Queensland governments, with a federal contribution of $852 million and state, $213 million.

On Tuesday, Australian Constructors Association chief executive officer Jon Davies said there was no shortage of bidders for the Ring Road project and two joint ventures had already been short-listed.

“So scarcity of resources should not be cited as a reason for deferral,” Mr Davies said.

“The most likely reason for the deferral is the significant increase in the cost of the project from what was budgeted, most of which was avoidable.

“The Best Practice Industry Conditions imposed by the Queensland Government are likely to have been the biggest contributor to the recent spike in the cost of the project.

“The construction industry has experienced unavoidable price escalation, like almost every other industry, but the Queensland Government have ignored warnings from industry that the imposed conditions will add further significant inflationary pressures.

“Whilst the construction industry is operating in a constrained market where there are limited resources, the best way to address this is by implementing measures to improve industry productivity not by kicking the can down the road and hoping the situation improves.”

Minister for Transport Mark Bailey addresses the floor during question time at Queensland Parliament House. Photo: NewsWire/Sarah Marshall.

Queensland’s Transport and Main Roads Minister Mark Bailey hit back at Mr Davies on Tuesday.

“If Best Industry Practice Conditions were to blame for the cost increase on Rockhampton Ring Road, then how are they also to blame for the $6 billion cost increase on Sydney Metro managed by the NSW Government,” Mr Bailey said.

“Or the $4 billion cost increase on the North-South road corridor project managed by the former Marshall Government in South Australia?

“Clearly BPICs is not the cause, because it’s soaring widespread inflation left by the former Morrison LNP Government that is ravaging the whole nation in every grocery store, every servo and construction projects everywhere.”

Rockhampton Ring Road - Alexandra Street overpass. PIC: TMR

Mr Bailey said construction costs had gone through the roof due to the worst inflation in a generation caused by “the economic incompetence inflicted on the nation by Scott Morrison and his local LNP apologists Michelle Landry and Matt Canavan”.

“Anyone building a house, buying groceries or filling up their car at the moment is suffering and knows that all too well,” Mr Bailey said.

“Construction is a dangerous job and Queensland workers deserve to go home safe every day from project sites and I make no apologies for implementing safer working conditions for them.

“There is no evidence at all to suggest that’s what’s responsible for a national increase in construction prices.”