A new guide aimed at reducing the number of disputes in the construction industry could save up to $7 billion a year - the equivalent to seven Gold Coast Hospitals.
The Guide to Leading Practice for Dispute Avoidance and Resolution, developed by national Co-operative Research Centre (CRC) for Construction Innovation based at the Queensland University of Technology, was launched this week by the Department of Infrastructure, Transport, Regional Development and Local Government - Australia's single largest infrastructure client.
The Australian construction industry employs approximately one million people and undertakes some $120 billion of non-residential work annually.
Construction Innovation chair, QUT Adjunct Professor John McCarthy, AO, said research indicated $7 billion in direct and avoidable dispute resolution costs were incurred annually, which equated to the approximate cost of building seven Gold Coast Hospitals each year.
"Disputes contribute to the inflation of future project cost through higher tendered prices based on previous experience in similar work and are generally incorporated into a 'business as usual' approach," Professor McCarthy said.
"If the unnecessary cost is avoided, the resource pool could produce more public and private infrastructure and services that will enhance the quality of life for the Australian community."
Chairman of the Dispute Avoidance and Resolution Taskforce and chief executive of Asia Pacific, Aurecon, Tony Barry said the waste of resources on non-productive tasks could not continue.
"Wasting resources on non-productive tasks represents a massive loss to the Australian community in terms of the lost opportunity to deliver real value through improved transport, health, education and industry infrastructure and facilities," Mr Barry said.
"The Guide to Leading Practice for Dispute Avoidance and Resolution has been developed following significant industry input and collaboration, and original research that identified proactive issue resolution methods.
"It incorporates suggested change strategies and implementation tools to help people in the construction industry avoid the root causes of disputes."
The guide is available from the CRC for Construction Innovation website www.construction-innovation.info and industry organisations are invited and encouraged to download and circulate it to members.
A seminar series on how to implement the guide within organisations and project teams, which focuses on the benefits of best practice to avoid the root causes of disputes, will be held in Sydney, Melbourne, Brisbane and Perth this month and in December.
Media contacts:
Tony Barry, chief executive, Asia Pacific, Aurecon; and chair, Dispute Avoidance and Resolution Taskforce, 0411 041 650 or barrya@ap.aurecongroup.com.
Dr Keith Hampson, CEO, CRC for Construction Innovation, 0414 642 288 or k.hampson@construction-innovation.info.
Novella Martin, External Relations Officer, 07 3138 4039 or novella.martin@qut.edu.au.
