Commercial construction in Australia bouyant

A Chartered Institute of Building [CIOB] product story

Edited by the Buildingtalk editorial team Dec 21, 2004

Commercial construction in Australia continued the strong rise it has shown over the opening years of the 21st century.

Commercial construction in Australia continued the strong rise it has shown over the opening years of the 21st century during the year ended March 2004 according to the Construction 100 report produced by the Housing Industry Association Economics Group in association with Reed Construction Data.

The value of commercial construction carried out by Australias top 100 firms last year rose to $52 billion, a 6.8 per cent rise on the previous year.

This part of the industry consists of three major segments: non-residential building, engineering construction and multi-unit housing.

The $52 billion covers work carried out by private contractors excluding the market for new detached houses and renovations, and engineering construction carried out by public sector workforce.

The largest 10 companies accounted for 65 per cent of the value of work won by the Construction 100.

TIGA Joint Venture ? an alliance between Fluor Australia and Worley - was the biggest in the last financial year due to the size of a mining project award valued at $12.5 billion.

The Leighton Group was second in the running, winning contracts worth $4.5 billion, Multiplex third with $3.8 billion new orders, mainly industrial.

Except for the Lane Cove Tunnel Consortium which stands fourth in the list at $1.1 billion, the 17 which make up the top 20 enjoy turnovers ranging from $1 billion to around $400 million.

The Lane Cove Consortium is made up of Theiss, Transfield Holdings and ABN Amro.

formed to construct a twin tunnel roadway in North Sydney connecting the Gore Hill Freeway with the M2, completing the citys orbital road network.

The Housing 100 report, also produced by the Housing Industry Association based in Campbell ACT, says that 2003/04 was another frantic year for Australias home builders.

"The favourable combination of historically low interest rates, a rebound in economic growth and soaring consumer confidence kept activity at record levels over the year".

Australias biggest house builder in terms of starts was BGC Australia with 5,137, all in Western Australia.

Multiplex Limited was the largest multi-unit builder nationally with 1,734 starts, down sharply on the 3,219 achieved in the previous year.

The revenue earned by the largest 100 house-builders is estimated to have risen by 22 per cent to $16.4 billion in 2003/04 compared with $13.4 billion the previous year.

As to the future, the Housing 100 report says that the residential construction sector looks to have peaked in mid 2004 and forward indicators continue to point to a moderate correction ahead.

But it comments, "There is still nothing to suggest anything other than a historically mild pull-back".