With the end of the year rapidly approaching I decided to dust off the Brackenway crystal ball to see what we can expect in the Construction Industry, from a commercial and contract perspective, during 2017
Whilst the view was slightly hazy and the glass cracked (maybe an old shoe box isn’t the best place to store it) I was able to divine that:
- After a seemingly endless consultation period the AS 11,000 construction contract, including more prescriptive measures for resolving construction disputes, will finally be released (Refer to my blog on AS 11,000) There will be little interest in it beyond the legal community and Clients will continue to use their heavily modified (and trusted) versions of AS 2124.
- Realising that, through constant tinkering, they have reduced the effectiveness of security of payment legislation State Governments will move to introduce new requirements for project bank accounts and/or retention trust funds.
- Despite all the fanfare, the Unfair Contract Terms Act will have little impact in protecting all but the smallest of subcontractors from unscrupulous contractors because of the restrictions governing where the Act applies.
- A value creation or value capture scheme will be announced to part fund an infrastructure project although it will likely be the former as the latter sounds too much like a tax.
- The trend towards outsourcing of project roles and corporate functions will continue as construction companies look to manage their overheads and employees seek greater flexibility and control of their destiny.
Whilst some or all of the above may not come to pass, we can be certain that change is inevitable and there will likely be a number of events that shape industry that not even Nostradamus could have predicted.
Whatever happens next year, Brackenway Consulting will be here to help you effectively manage change, make informed decisions and stay ahead of the pack.
In the meantime, we wish all our friends a safe Christmas and prosperous New Year.
Jon Davies
Principal of Brackenway Consulting
QS, Commercial Manager & Contract Facilitator