THE SOFT REOPENING OF NSW CONSTRUCTION SITES CONTINUES
On 7 August 2021, the NSW Government announced measures to increase onsite participation on construction sites throughout the state to increase from 11 August 2021 to 50% of capacity.
The pragmatic approach of our state government, in further opening construction sites to more participants (including from locked down Local Government Areas), is to be commended.
Vaccination is a key plank of safeguarding the re-opened sites. Despite this, the government has made clear that it is unlikely to legislate mandatory vaccination – putting this onto industry to manage. Is this fair?
It is with some small glimmer of optimism that we hope the construction industry’s continued ability to manage COVID-19 risks on site will serve as a model to enable the reopening of other sectors.
Projects remain distressed. Sites are still struggling to plan and deliver at any commercial viability productivity levels in the face of ongoing labour shortages, delays and disruption. Uncertainty impacts all facets of project delivery. More industry support will be required.
Ultimately how these risks are managed will shape how the industry comes out of the pandemic. We summarise the further changes announced below.
What has changed?
From 11 August 2021, unoccupied constructions sites across Greater Sydney, including the Central Coast, Blue Mountains and Shellharbour, will be permitted to operate at 50 percent capacity with enhanced COVID safe measures – striking a balance between sustaining the industry and economy and keeping sites safe for workers.
For workers from the restricted Local Government Areas, including Blacktown, Campbelltown, Canterbury-Bankstown, Cumberland, Fairfield, Georges River, Liverpool and Parramatta, construction workers will become ‘authorised workers’ allowing them to work on unoccupied construction sites subject to new vaccination conditions.
Construction workers from these affected LGAs will need to provide evidence that they have received:
- two doses of a COVID-19 vaccine;
- one dose of a COVID-19 vaccine at least three weeks prior to attending site or, if less than this period, a negative COVID-19 test in the previous 72 hours.
Of note, NSW is currently trialing rapid antigen testing and, when approved by NSW Health (hopefully soon!), this will form acceptable evidence of the required test above.
For completeness, there will be exemptions afforded to those individuals with medical conditions that make vaccination unsuitable.
Why now?
In part, local government areas within the affected LGAs, including Georges River, have seen a marked increase of both vaccination and testing. No doubt that this will have given the Government some level of comfort.
Further, the high numbers of vaccinations across New South Wales – with a target of 6,000,000 jabs this month – have also provided further confidence.
The innovative use of rapid antigen testing, which has been advocated for by the Australian Constructors Association and others, has also been a game changer for this decision.
Other factors have also led to this outcome:
- as was evident with numerous suburbs entering into a harder lockdown in the Penrith LGA on 8 August 2021, the ‘affected areas’ will be a moveable feast;
- adopting safeguards which protect workers but enable a meaningful site presence will ensure that projects can at least progress within the prescribed constraints – where a number of sites have not recommenced due to the acute labour shortage arising from the affected LGAs to date; and
- the reality that the ‘affected areas’ may spread, increase and decrease over the medium term until vaccination hits targets over 80 percent, necessitates a more flexible process to ensure projects are not left in limbo for an uncertain period.
What next?
It is hoped that the rapid antigen testing will be endorsed by NSW Health very soon.
As was the case last year, we are confident the industry will respect and adhere to the parameters within which it has been extended an ability to at least progress works on site.
The elephant in the room remains who will pay for this delay and disruption? Projects are distressed and the extension of delivery dates alone will not save many project participants.
It remains to see if these changes reflect a site half full or a site half empty. Progress will be incremental – the practical and agile approach by our state government is progress – though there remains much more to be done to support the industry as it navigates the pandemic.
For more information, please contact Veno Panicker, Partner, Construction and Infrastructure
