> Building Perspective Profiling Victoria’s Vibrant Construction Industry Published by: BUILDING INDUSTRY CONSULTATIVE COUNCIL Minister’s Foreword By any measure Victoria’s building and Research commissioned by our building and And let’s not forget the major projects that construction industry is booming. construction sector has found that across 16 have started which include a new $1 billion Cranes silhouette Melbourne’s skyline cost variables, Victoria is highly competitive Convention Centre – which we expect to in a progressive reminder of the industry’s with New South Wales and Queensland and create more than 1000 jobs – the Melbourne monumental achievements. has been steadily improving compared Theatre Centre, and the wholesale market to other States since June 2002. relocation to Epping. Wealth from construction is being generated for all Victorians through a atmosphere of Workers compensation premiums are lower The Victorian Government is committed partnership, co-operation and understanding. in Victoria than in NSW. to supporting the construction industry And since the Bracks Government was grow and prosper. It engages with industry This contrasts starkly with the Federal representatives regularly to promote Government’s adversarial approach to elected in 1999 the rate of disputation in the Victorian construction industry the government’s policy of developing industrial relations which persist with myths co-operative workplaces. that construction in Victoria is a disruptive has plunged dramatically. and costly business. And what have we achieved in this new age Our approach is to maintain a close of productivity? The list is impressive. relationship with the construction The facts speak otherwise. industry through the Building Industry • The great MCG re-development, Investment in Victoria is going from Consultative Council. • The Commonwealth Games Village, strength to strength. This group, made up of unions, employer We recorded the highest value of building • The Austin-Mercy Repatriation Hospital, organisations and government, meets approvals of any state over the past calendar • The new Southern Cross tower regularly to iron out industry issues and year – a record $16.7 billion, the third on Exhibition Street, I congratulate it for working extremely well. consecutive year over $15 billion. Latest Its smooth and constructive operation • The new Southern Cross station, figures also show Victoria continues to attract is a lesson for other States to follow. • The Synchrotron, more than $1 billion of investment each I commend these case studies to you month in building projects – clear signs • The Eureka Tower and great strides as positive examples of how Victoria of a vibrant industry. are being made with the giant delivers on time and on budget. EastLink motorway project. And there are good reasons why investors Rob Hulls MP are flocking to Victoria. Minister for Industrial Relations 02 Chairman’s Message The Building Industry Consultative Council Accordingly, it is with great pleasure that Media reports periodically imply that building (BICC) was set up as a high level forum the BICC presents five case studies which costs in Victoria are not competitive with New for discussion between the Victorian celebrate that partnership approach and South Wales. However studies undertaken by Government, employers, employees and highlight what can be achieved with the BICC suggest that for commercial and their associations on important economic co-operation and goodwill. industrial projects Melbourne and Victoria and industrial relations issues in the The case studies document the construction are very competitive. building industry. life of the Synchrotron, Holden Engine Plant, Finally let me congratulate all those Its key objective is to promote an Melbourne Airport Runway, Southern Cross involved in the five projects. On behalf environment that will stimulate progressive building, and GE at Botanicca projects. of the BICC, I thank them for participating building activity and jobs growth in Victoria. They are significant projects by any measure in the development of the case studies. The BICC is proud of its record in fostering and involve iconic structures which are very They will provide continuing evidence that harmonious working relationships, much in the public eye. the Victorian building and construction industry is one in which investors, companies, promoting cultural change, facilitating They demonstrate that through a and the public can have confidence. investment and promoting best practice partnership approach major projects in the Victorian construction industry. can proceed in a climate of safety and Bob Merriman AM As a tripartite forum the BICC has worked productivity and finish on time and Building Industry Consultative hard to achieve these goals by pursuing on budget. They are success stories. Council Chairman a co-operative approach within Importantly, the projects represent the industry a key part of the BICC charter, which We have gone down this path knowing that is to stimulate investment in construction it has and will contribute positively to the by working to improve the image of the construction industry of the future and industry through better industrial relations. to further underpin Victoria's prosperity. Building Perspective – Profiling Victoria’s Vibrant Construction Industry 03 Southern Cross 01 > When Melbourne grew, the block bordered by Bourke and Exhibition Streets was Attracting prime ministers, presidents a thriving hub of theatres and cafes, and celebrities, such as the Beatles, dominated by the ornate Victoriana Frank Sinatra, Judy Garland, Rock Hudson of the Eastern Market. and Marlene Dietrich, its glamorous Built by stonemasons and bricklayers function rooms were sought out for in the post-gold rush-boom, the elaborate, society weddings, Brownlow Medal counts, two-storey structure was one of the Logie nights and political soirées. legacies of the eight-hour day and a sign But time passed. By 2000, the fashion of Melbourne’s fascination with retail of the ‘swinging 60s’ became drab and and construction. outdated. Worse still, the Southern Cross More than a century later, the city endured became a victim of the misfortunes of its another building boom, which saw Whelan owners, the Nauruan Government, which the Wrecker demolish the old market in paid $42 million for the old hotel, plus 1960. This made way for a new era of glass $10 million to the Victorian Government and steel, embodied by a 16-storey hotel for the freehold in 1994. A year later to be known as the Southern Cross. the doors were closed forever. Regarded as the first hotel of the ‘jet age’ Debt-ridden, unoccupied and branded as the ‘Cross’ became the image of Melbourne an eyesore for more than six years, the old chic. It boasted a groovy cocktail lounge, hulk was demolished in 1997 to make way an underground car park, 65 specialty for an apartment tower that was never built. shops and a bowling alley. The land was subsequently acquired by the Baron Corporation in 2001. Building Perspective – Profiling Victoria’s Vibrant Construction Industry 05 “For too many years the Southern Cross has been one of Melbourne’s most infamous derelict sites. Now it will become a showcase for innovation and sustainable development in Victoria.” Premier, Steve Bracks, 2002 Southern Cross THE MASTERPLAN At about the same time the Victorian Industrial relations manager at Multiplex, Government became concerned that its key Randall Fuller, said the consortium departments were scattered among more proposed a building that the Government than 15 office buildings throughout the CBD. would not own. Spring Street would not It decided to consolidate financially and even be the client. to allow the bureaucracy closer access It produced plans for two office towers. to Spring Street. The first rose 37 storeys along Exhibition To get things rolling, the Government asked Street. The second, a 19-storey edifice, the investment community for submissions. is still confined to the drawing board. Most of the major builders formed The plan was strongly supported by a consortia with developers and specialists, Victorian Government keen to generate CBD Southen cast around for appropriate sites. development and anxious to rid at major city block of an unkempt and unproductive site. Baron Corporation enlisted Multiplex and Babcock and Brown to form SX Victoria’s Premier, Steve Bracks, who Developments. That partnership generated launched the development in November a $600 million plan for the historic block 2002, proclaimed: “For too many years that won the right to develop office the Southern Cross has been one of accommodation on the Southern Cross Melbourne’s most infamous derelict sites. Hotel site. Now it will become a showcase for innovation and sustainable development in Victoria.” Cro06 ss CONSTRUCTION To facilitate the project, the Government Fuller said Multiplex had established a According to Fuller, Multiplex held committed more than 2000 public productive relationship with Victoria’s informal talks with relevant unions prior servants from the Departments of Justice, building unions through a policy of formal to construction. There was consensus that Innovation, Industry and Regional and informal consultation about what companies with good track records would Development, Infrastructure and the State projects the company had on the horizon be hired for the project: “There was no Revenue Office to the tower. And from and what outcomes it was expecting.