Increasing risk and liability is the biggest issue facing the engineering profession in Western Australia, closely followed by the growing shortage of skilled engineers, according to the two people leading the profession in the state.
Increasing risk and liability is the biggest issue facing the engineering profession in Western Australia, closely followed by the growing shortage of skilled engineers, according to the two people leading the profession in the state.
The new WA chairman of the Association of Consulting Engineers of Australia, Wood & Grieve director Matt Davis, and the new state president of Engineers Australia, Department of Environment manager John Ruprecht, are also concerned about continuing increases in insurance premiums.
Mr Davis believes the profession also needs to adapt to the changing priorities of younger engineers who want a better work-life balance.
In an interview with WA Business News, he said clients were seeking increasingly to push risk to third parties.
“An increasing amount of time and energy is being spent in dealing with issues in a litigious manner,” Mr Davis said.
He added that litigation was being used as a ‘big stick’ in negotiations.
There was also a trend for standard, well-known forms of contract to be replaced with construction contracts written specifically for particular projects.
“All of this distracts attention from getting on with the job,” Mr Davis said.
The issue of risk is also reflected in professional indemnity insurance premiums, which the industry says are still increasing, contrary to the findings of government surveys.
The Australian Competition and Consumer Commission reported last week that professional indemnity insurance premiums have fallen, on average, by 17 per cent in the six months to June 2004, reversing the pattern of big premium increases since 2000.
In contrast, a recent survey of consulting engineering firms found that average PI premiums increased by 11 per cent in the six months to January 2005.
As well as lifting premiums, insurers have imposed restrictions on the types of engineering services being covered.
“The consulting engineering industry needs PI insurance that is far more widely available, covers the range of services provided by firms at prices that are affordable and sustainable,” Mr Davis said.
“We’re certainly not there yet.”
Another major issue facing the industry is the shortage of skilled engineers.
“It’s a growing challenge to attract and retain good people,” Mr Davis told WA Business News.
He anticipates the problem will get worse as demand for skilled engineers continues to expand, and predicted more engineering and construction work would be pushed overseas.
This is evidenced by Woodside’s publicly announced plans for its $2 billion train 5 project, which is expected to have much lower Australian content than its train 4 project.
While there are no simple, short-term solutions, Mr Davis said increased migration should be allowed.
Mr Ruprecht said boosting training places in universities was important for the longer-term health of the profession.
He warned that professional standards needed to be maintained, despite the temptation to push complex work to staff with less experience and qualifications.
Mr Ruprecht said the industry needed to make it easier for people to return to the profession after a break, such as working mothers who had been away from full-time work for a period of time.
“We need a cultural change to ensure more job opportunities are available to older workers and that they have the necessary skills through life-long learning initiatives,” he said.
Mr Davis said many engineers, including men with young families, were looking for a more flexible approach to working hours and employers had to accept the new reality.
