Australia’s productivity crisis deepens as construction costs defy global trends

New data just out about the residential construction industry - https://www.apimagazine.com.au/news/article/australia-s-productivity-crisis-deepens-as-construction-costs-defy-global-trends

What should you know:

• For residential construction contracts: low productivity implies longer durations, higher labour costs, and greater risk of schedule over-runs.

• Contract drafting/management should anticipate these productivity constraints: e.g., more robust scheduling, contingency allowances, stronger subcontractor management, early involvement of supply chain - make sure you ask your builder more questions

• For risk allocation: who carries productivity risk? Are contracts adopting “target cost” or “cost-plus” models? Are incentives or shared risk structures being used? Let us review this for you