Dan admits the ‘pretty hot construction market’ could delay Big Build projects

The Premier has conceded that “congestion in the construction market” could delay some of the state government’s Big Build projects, which would be addressed in more detail in next month’s budget.

Daniel Andrews has conceded that intense pressure in the building market could delay some of his government‘s flagship Big Build projects.

The Premier made the admission ahead of what is shaping up to be a “horror” budget, but refused to say which projects could be pushed back.

Treasurer Tim Pallas has previously flagged that the government needs to look at its pipeline of infrastructure projects, but this is the first time that Mr Andrews‘ has hinted at changes.

Mr Andrews said a “pretty hot construction market” needed to be taken into account, and would be addressed in next month‘s state budget.

“You can only get away with what the market can actually deliver,” he said.

Premier Daniel Andrews said any project delays would be dealt with in the budget. Picture: Luis Ascui

“We’ve seen in lots of different contexts, we’ve seen tender boxes that aren’t quite as full as we’d like them to be, businesses that are just not able to keep pace given how much is there.

“All of that will be dealt with in the budget in the normal way but we’ve got more to do than ever and we’re pushing ahead with getting it done.”

Over the years, the Andrews government has been forced to deal with blowouts on major projects created by labour shortages and increased costs of materials.

But it has so far refused to follow other states in pushing back projects to cool off these challenges across the eastern seaboard.

“I think there‘s that heat, that congestion in the construction market, that isn’t in one particular part of that very diverse industry,” Mr Andrews said.

“Late last year we saw the then-New South Wales government re-scope a whole lot of different projects in relation to time.

“I‘m not foreshadowing that. I’m just simply saying there is pressure. That is real and you’ve got to actually look at how much you actually allocate versus how much is spent and how much gets done.

“There are always limits, so all of that will be canvassed in the budget in fine detail.”