This article is from the Australian Property Journal archive
BOVIS Lend Lease has move up from fourth place last year to top this year's list of Australia's 100 largest commercial construction companies.
The 10th annual HIA-AI Group-Reed Construction Data Construction 100 shows there were $73.7 billion of work in the commercial construction sector in 2008 – up 11.5%.
And at the same time, Bovis Lend Lease won contracts worth nearly $4.7 billion.
HIA’s chief economist Harley Dale said that over 2007/08 the largest 100 companies won contracts worth over $42 billion. The contracts won over 2007/08 by the Construction 100 were equal to 44% of all non-residential construction work started.
“The largest ten companies accounted for 50% of work won by the 100 largest companies, while the largest twenty companies accounted for 69% of work won,” he added.
John Holland Pty was second with just over $3.5 billion worth of work covering all construction areas except for multi-unit construction and Leighton Contractors Pty Ltd was third with just under $3.5 billion worth of construction work with the civil engineering sector.
Dale said 2007/08 marked yet another year when the non-residential sector clearly out-performed residential.
“For the largest companies, the fastest growing segment of the market was the industrial sector (from a low base) where the value of work won was nearly 80% up on 2006/07.
“Total non-residential industry starts put on another strong burst in 2007/08, increasing by 20% following growth of 34% the previous year. Over the entire decade to date the number of starts has increased by 140%. It is difficult, however, to view such performance as being sustainable given the current challenging climate,” he continued.
Ai Group Chief Executive Heather Ridout said whilst construction activity relating to mining and infrastructure development are holding well and there is a strong pipeline of demand, other commercial, housing and apartment activity are being squeezed by the global credit crunch.
“A lack of available funds, the higher cost of borrowing, and global uncertainty are putting a cap on new activity, as major constructors take a more cautious approach. These good results may not be repeated in the coming year,” she concluded.
Australian Property Journal
