June Cummings reports
“I think as a spokesperson for the industry, the CCF has never been stronger than it is at present. The relationship between contractors and government authorities are as strong as they have ever been.”
Brisbane-based Bielby Holdings with 60 employees is a mid to large civil contractor which has benefited from the absolutely frenetic activity in public spending on infrastructure in Queensland in the last three years. To such a degree that 2008/2009 was its best year on record. But the downside is that government budget cuts will see a reduction of work for 2010.
This looming period of quiet is no good for the industry Cogill says. Young people are encouraged to enter the industry, which offers huge expectations, then they are dumped on their butt two years later, and leave disillusioned.
The boom and bust cycle should be modified. The CCF in conjunction with QMCA (Queensland Major Contractors Association), AAPA (Australian Asphalt Pavements Association) and the ACEA (Association of Consulting Engineers Australia) has produced a number of papers that explain the benefits of disciplined investment in infrastructure. Cogill says, “Government would be well served to have a longer term plan and clip the top off the boom years we have had and try to level it out a bit.”
Once marked by skills shortages, there is no labour shortage at the moment in Queensland, because of the downturn in mining. But this industry is starting to recruit again.
Queensland’s boom in infrastructure construction is a product of the mass immigration to the south east corner each year of 100,000 residents, the huge export trade in minerals to satisfy international markets, and environmental infrastructure to offset climate change.
Cogill cannot see this demand abating, but makes a plea for strategic planning. “The state has to be proactive not reactive. We are so far behind in the delivery of roads and all infrastructure, that we are continually playing catch-up. I believe that we as a state should be spending more money on infrastructure. It is no good for the industry or the state to have construction continually cycling between boom and bust.”
Company profile
Bielby Holdings was founded by civil engineer George Leader 30 years ago to focus on the construction of government infrastructure works - mainly roads. Terry Cogill joined as part of a strategic expansion for Bielby Holdings, 14 years ago. Leader and Coggil had worked successfully together at Leighton Contractors and kept in touch.
A University of Queensland civil engineering graduate and business management postgraduate, Cogill brought valuable skills to the firm. During his 20 years with Leighton Contractors, his positions ranged from project manager, North Queensland construction manager, estimating manager and finally engineering manager.
While Bielby Holdings has grown in size, its growth has been very contained and disciplined.
Shunning publicity, Cogill says with humour, the firm operates as the “stealth contractor trying to keep below the radar”. As the MD he is very much hands on and is one of two workers in their neat, efficient office. The rest of the 60 staff are located in the field, but as part of a team.
“I mentor project managers. They report directly to me and I spend time with them going through the job and helping them to learn.” Cogill and other select members of staff do all of the firm’s tendering, with Cogill reviewing all tenders. He also teaches new staff the skills of estimating. Staff are loyal to the firm which has low turnover.
Bielby Holdings is currently working on four large jobs totaling $400m, but faces a slowdown in 2010. Civil engineering infrastructure projects in its portfolio have included work for Queensland Rail, Port of Brisbane, Queensland Main Roads and Transport and private companies. It has prequalification at Main Roads R5B3 level enabling it to do run of the mill large roadwork projects.
Bielby Holdings is also working with other Queensland contractors JF Hull and Albem in joint ventures. With Hull on the $113m Acacia Ridge open level crossing project and BHA (Bielby Hull Albem) joint venture building the $180m Springwood South to Daisy Hill, Pacific Motorway upgrade project. Both of these contracts have planning, design and construction responsibilities included in their scope.
Winning streak
Cogill says all of the firm’s jobs are profitable. “I focus on jobs that I want to win and we work hard on this. We do not use a scatter gun approach. We are a Main Roads prequalified tenderer, but there is no guarantee of work despite our track record. It all comes down to money.”
In pricing on work, while innovation is encouraged, Main Roads has rules and regulations that must be respected. What works in Victoria does not work in Queensland; the same for NSW, Coggil says.
“Most contracts are RCC and really tight. But we won’t win at any cost. I would prefer to lay under a tree and go broke than work and go broke.” The firm concentrates on work in Queensland.
Strategy
Bielby Holdings is very proactive in improving its efficiencies. Coggil keeps abreast of developments by scouring magazines and the internet for new technology and has made a “huge” investment in GPS and machine control.
“We have just brought the first Cat M318D rubber tyred excavator into the country. We have chosen this machine for its ability to traverse our roadwork sites after the pavements have been placed, without causing damage. It will give our sites that extra bit of flexibility and efficiency when compared to using tracked machines. This machine, like others in the fleet will run GPS machine guidance systems,” Cogill says
Industry changes
Changes in the industry have been marked, prompting Bielby’s investment in new technology. Construction is more technical, standards much higher and tolerances much tighter. GPS and machine guidance systems give better production and quality, but it is expensive. Upfront costs are high and it has a short lifespan before it is outdated.
There have also been changes in the operations of the public service and Main Roads. It now outsources a lot of design, which under the boom and bust cycles makes economic sense, according to Coggil, who supports this outsourcing.
He also supports alliance contracting and says criticism is largely unfounded and based on the lack of real information. “It has produced very good outcomes allowing contractors to work closely with clients such as the Main Roads to produce positive results for all parties. Not only does Main Roads become aware of contractors’ issues, but contractors become aware of Main Roads’ issues, so the industry becomes more mature.”
Terry Cogill is a member of the Queensland CCF Board, giving up one day a month to the job and helping frame policies. He also attends strategic workshops.
Very much the quiet achiever, he says he will retire in the course of time, and that Bielby Holdings has a solid succession plan in place that ensures that Bielby continues to build infrastructure will into the future.
