Issues & trends

Building and construction activity is undertaken by both the private and public sectors in Australia. The private sector is engaged in all categories of construction, and plays the major role in residential and other building activity. The public sector plays a key role in initiating and undertaking engineering construction activity, and building activity relating to health and education.

Sectors of Australia's economy closely linked to the construction industry and its activities include manufacturing, wholesale and retail trade who supply components, fittings and furnishings, and parts of the professional services industry such as the architectural and engineering professions for design and erection methods embracing both proven and advanced innovative technological methods and products.

The construction industry is also a key indicator and driver of economic activity and wealth creation. But, the industry's future prosperity will depend on its capacity to evolve on business, technological and environmental fronts.

Taxation
Complete taxation review of project structuring is vital to ensure the commercial viability of the project including compliance with all of the projects reporting responsibilities. This can also entail a system review and implementation of a documentation system to make taxation reporting straight forward.

Assurance compliance:
Owners of engineering and construction projects are subject to strict assurance requirements. With many different stakeholders (such as corporate boards, tenants, investors, developers, government, media, general public), many project owners have challenges meeting compliance requirements and divergent stakeholder needs.

Risk management:
Construction activities entail enormous fiscal requirements and logistical challenges - with risks being present everywhere! Many organisations require support with identification, management and reporting of risks and associated contingencies.

Corporate governance and sustainability:
Sustainability - environmental protection, social welfare and economic prosperity - is increasingly being seen as a responsibility of the construction and property sector. While some companies are actively engaging stakeholders to better understand the risks and opportunities that sustainability presents, many are taking a compliance-driven approach. By taking this approach, companies are overlooking the risks of potential loss of business, as well as the opportunities for cost savings and market differentiation.

Dispute resolution and fraud
Disputes can arise unexpectedly for even the most experienced player/s in this industry. Determining where responsibility lies can be a difficult and contentious process involving successive rounds of claims and counterclaims and requiring the investment of significant resources.