So Kevin Rudd and Julia Gillard had an idea…stimulate the economy with $15 billion for new buildings at all the primary schools in Australia. Not only would it get things built, but also decrease rising unemployment. And now that these projects are coming to fruition with their ridiculous deadlines, the WA government has awarded its first lot of building tenders for the state primary schools. John Holland, a subsidiary of Leighton, won 40% of the first round school projects at a value of over $140 million. The next highest contract went to Pindan Construction, with a value of nearly $38 million. The other 59% of the projects went to another 23 different smaller builders. Was this the government’s intention – to help out the big builders and squeeze out the small ones? As their “bulk-buying power” in theory allows the schools to be built cheaper, what does this do to all the smaller builders out there who are struggling with the GFC decreasing investment in construction? Is this the right time to be only looking at the bottom line?
Its also interesting, I read today in the National Building News that John Holland have also just been awarded a $270 million contract for the redevelopment of the Joondalup Health Campus. They sure are going to be busy!