2023: The Year in Review

And looking forward to 2024

Welcome to our end-of-year round-up. It has been such a big twelve months for the construction industry. Stronger players have thrived across numerous infrastructure and private development projects, but 2023 has definitely not been free from challenges. Here is a glimpse of some of the major challenges the industry has faced and overcome, as well as some of Impact Group’s biggest achievements from the past twelve months.

 

Construction Industry Overview

In 2023, the construction industry continued to face a perfect storm of labour and material shortages, rising costs, changing regulations and ‘moving goalposts’ when it comes to development approvals.

 

Manpower

As reported recently by Infrastructure Australia, there are only 177,000 workers currently in Australia’s infrastructure, housing and energy system despite there being enough demand for the equivalent of 405,000 workers. The gap between the number of people and the number of jobs highlights the importance of good networks and connections as well as the ability to maintain a good reputation with contractors.

 

Material shortages and construction costs

Supply and demand issues in Australia have led to material shortages and skyrocketing project costs. This year, we reported that Sydney is the most expensive city in the country when it comes to construction and is the 36th most expensive in the world.

Our team has been very financially focused in 2023, identifying ways to reduce and control costs on projects of all sizes. Throughout the year, we have applied knowledge and experience to engineer value and counter rising construction costs through:

  • Analytical approaches that achieve best value
  • Advanced project methodology: understanding built-form, sequencing of works and materials handling on site
  • Savvy contract negotiation: reviewing contractual and legal requirements and preparing watertight agreements
  • Outstanding supply chain knowledge: understanding the current market availability in labour and material
  • Better contractor management: working with the most reliable, solid and cost-effective operators.

Read more: How to counter rising construction costs

 

Changing zoning and regulations

Regulations are another area of focus as NSW construction industry policy is ever-changing.

Next year, for example, may see the introduction of compulsory latent defects insurance. This aims to protect stakeholders from unexpected costs and lawsuits by enabling an apartment building owners corporation to have a serious defect fixed up to 10 years after the building is first occupied. It’s a good initiative but of course it adds an additional layer of complexity to the planning and budgeting process. 

This year saw updates to the Design and Building Practitioners Act, which affects Class 3  and Class 9c buildings that are currently under development. Our project management team has been busy ensuring that the design phase of the health and aged care facilities and accommodation projects affected by the change are now compliant with the Act. 

Read more: DBP Act changes: what you need to know

The end of the year has seen a great deal of discussion about how the property development landscape will look in 2024 in Sydney. A recently released list shared the suburbs targeted for high-density housing, including plans to rezone land and build 45,000 new homes by 2027. Plans will see more high rise buildings up to 50 metres high close to transport hubs in key suburbs. It’s exciting news on so many levels but has left many developers in limbo when it comes to planning and decision-making. 

Read more: Will NSW housing policy changes affect you? 

 

Updates from Impact Group

Throughout the highs and lows, our team has been busier than ever supporting projects across a range of sectors, including new residential apartments, retirement living communities, industrial developments, schools and more.

Among many, some of our biggest achievements have been the successful completion and handover of many social and affordable living projects as well as community projects for NSW Land and Housing Corporation, Landcom and NSW Aboriginal Housing Office, all over metropolitan and regional NSW with further engagements underway.

Completion and handover of Bolton Clarke’s 136 bed residential Aged Care facility adding to Stockland’s masterplanned community in Denham Court.

We celebrated the topping out of Northsea in Wollongong – a first for our industry with inclusive living. A 12-storey mixed tenure residential development combining 54 apartments with private clients as well as social and affordable clients. An important partnership between Government, a private developer and a Community Housing Provider coming together to provide necessary housing for our communities.

The completion of our industrial project in South Windsor providing 24 industrial units to the growing region.

We saw the successful delivery and completion of a handful of boutique luxury apartments in the Eastern Suburbs with further engagements underway.

Our team completed and presented a 7.5ha masterplan for Southern Cross Care in Merrylands West.

We achieved Occupational Certificate for 20 brand new terraces – Kent Terraces – for Carrington Care.

We also celebrated the promotions of valued staff members, Gavin Evans, Adrian Balatinac and Hailey Rivera.

We welcomed new staff to our growing team, Richard Wykes, Rick Arakelian, Amanda Coleman and James Lubke.

This year, in addition to applying existing experience, we have also been focused on adapting to new technology that facilitates better outcomes as well as improved cost-efficiency during and after construction.

 

Let us help you make your project a success in 2024!

2023 has been a big year and we are so excited about what we can help our clients achieve over the next 12 months.

At a glance, Impact Group provides a range of project management services across all sectors of property, including:

  • Development Management
  • Project Management
  • Superintendency
  • Lenders Agent
  • Consulting and Advisory services

We apply years of expertise to deliver positive outcomes for a range of projects Australia wide, serving Residential, Education, Retirement Living & Aged Care, Health, Industrial, Retail, Commercial and Hospitality.

We look forward to connecting with you in 2024.

Contact Alyssa Lanning on alyssal@impactgroup.com.au or phone 1300 630 063.

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