Hays Construction - April 2007

Hotspots

Around Australia contract administrators are the main hotspot of construction demand. Their responsibilities in tender and contract documentation, vetting the contracts, negotiating and liaising with sub contractors and processing invoices and progress claims are vital, yet there is a severe shortage of experienced candidates.

State-by-state the hotspots exist as follows:

Western Australia:

In Western Australia demand for industry professionals continues to rise for all key positions, although contract administrators and estimators remain the highest in demand. Given the number of current and forecasted projects exceeding $100 million, demand also exists for all senior level candidates capable of delivering high profile projects.

Queensland:

The main hotspot remains contract administrators; every single contractor would take one on immediately if available and a solid candidate would receive multiple offers. Candidates with three years experience for a reputable top tier contractor can command $75,000. This demand exists due to the high level of commercial projects commencing. Whereas forepersons and site managers are often in place it is the commercial side of the job that needs to be managed and there are simply not enough contract administrators available to meet demand.

South Australia:

The Adelaide market is experiencing huge demand at all levels of the construction industry, with particular demand present for senior contract administrators and senior project managers due to the number of new projects commencing. Contract administrators in particular are required to tender for upcoming new projects, however the candidate movement within both these areas is low. Candidates with experience on $20 million and above projects are particularly rare.

New South Wales:

New South Wales is no exception to current trends, with contract administrators required. In addition, project managers are in high demand in Sydney while cost planners at the intermediate and senior levels and estimators remain sought after.

The Sydney market is experiencing top-tier candidate movement due to a lack of major projects. Consequently many senior candidates are joining mid-tier builders while the growth of many smaller companies is increasing vacancy activity due to the demand for construction projects between $10 and $50 million. The shortage of candidates is also impacted by the attraction of overseas working experiences, particularly Dubai, with many candidates leaving the local market to chase overseas opportunities.

Canberra:

The demand for graduate to senior contract administrators in Canberra is heated by the lack of a local construction management course until 2008, while several large commercial projects are in the design, building or tender phases and so require experienced contract administrators.

Project managers with five years or more experience and tier one forepersons are also in demand. The commercial downturn in 2004 saw many entry-level project managers relocate interstate and there is now a shortage of candidates with five years experience. Opportunities exist on commercial projects up to the value of $300 million.

The coming quarter

The focus for the next quarter is on permanent recruitment, with many employers indicating they will have permanent needs. Adelaide employers are eager to recruit permanent staff to assist in company growth while the commencement of new projects in Canberra over the quarter will heat permanent vacancy activity there. In Sydney employer intentions are high following Easter for both entry-level and senior candidates, although temporary requirements are expected to rise both in Sydney and Brisbane over the quarter as the shortage of candidates increases and employers seek a solution. In Perth vacancy activity in the South West and North West is predicted to increase with a number of major projects attracting larger builders to the region.

Executive recruitment

Executive vacancy activity is minimal in many states. In Adelaide executive activity is low with most senior management teams set. While experienced project managers and cost planners are in demand across the board in Brisbane, the market above $120,000 is not as active as the junior market. Canberra's executive market is equally smaller than other levels of the market, with most executive vacancies filled through internal promotion. However there is a need for general managers for companies establishing future operations in the area.

There is a requirement in Sydney's PQS consultancy sector for senior candidates who will ultimately be promoted to the executive level. In Perth an increase in the number of high profile projects is heating demand for senior candidates.

Salaries

Sydney, Brisbane and Adelaide salaries are expected to remain steady over the coming quarter. In Adelaide a reasonable number of candidates are expected to change roles over the quarter and this candidate availability should stabilise the market. While Brisbane and Sydney do not expect salary movements for most roles, candidates with major project experience are likely to receive higher salaries and there may be a possible increase in salaries for cost planners.

The acute nature of Canberra's candidate short market will continue to ensure salaries remain competitive with Sydney and Melbourne. Perth salaries are expected in increase in the coming quarters in line with forecasted levels of construction. Companies are becoming increasingly flexible regarding terms of employment and in offering additional benefits over standard remuneration packages to attract candidates.

Candidate trends

Adelaide and Brisbane have witnessed increased candidate available in certain areas. In Adelaide there has been an increase in candidate levels, particularly for site managers and site supervisors as many candidates are seeking larger or more exciting projects. Candidate availability has also increased in Brisbane due to relocations from NSW, Victoria and New Zealand and particular interest from interstate building and civil candidates.

Sydney's entry-level and intermediate candidates have begun requesting roles with smaller companies and this trend is expected to continue due to a lack of large jobs. Despite the candidate-short market, employers remain unwilling to compromise on skill levels or candidate experience requirements.

Canberra has witnessed a decrease in candidate levels, with construction management a major shortage area. However candidate movement is predicted over the next three to six months due to the completion of certain major projects and a lack of ongoing work in some companies.

Perth employers have begun to show an interest in international and interstate candidates, particularly those with a scheduled date of arrival into Perth. Overseas candidate attraction strategies and an increase in the number of visas granted as part of the government's fight to combat the state's skill shortages could be factors in this trend. With this interest has come awareness of the suitability of these candidates and we expect this to continue.

Nationally, employers are beginning to consider more sponsorship options for UK construction professionals.