2019Salary Guide

Overview

Introduction 3

Building 4

Civil Construction 5

Consulting Engineering 6

Summary 7

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Introduction

Welcome to the inaugural 2019 Consultive Salary Guide

There’s little doubt that the construction industry is one of the most important in the Australian economy. It not only contributes $134 billion (or 8%) to Australia’s GDP, but it’s also the nation’s third largest supplier of talent, with over a million employees working in the industry. The total value of construction in Victoria alone is expected to exceed $50 billion this year with the most prominent share of projects being in infrastructure.

Providing a snapshot of the construction industry from a remuneration perspective, our salary guide will help you gain an insight into the state of the market across various roles within our three core sectors: Building, Civil Construction and Consulting Engineering.

This report delves into each sector, giving you an understanding of who inhabits them and how much they’re being paid. We highlight what has changed salary-wise and what we expect to see as we move forward into the future.

We trust you’ll find it a valuable read – enjoy!

Note: We’ve collected this data using a combination of our CRM, recent placements and our industry expertise.

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Tier 1Capable of completing a $1bil build project. Example companies: Probuild Construction, Multiplex, CPB Contractors and Lendlease

Tier 2Average project value exceeding $70mil. Example companies: Hacer Group, Icon, Built, BMD Constructions, Fulton Hogan

Tier 3Average project value between $3-40mil. Example companies: Harris HMC, Adco Construction, Bitu-mill, and Winslow Contractors

FitoutSpecialist interior fitout contractor. Example companies: Intrec Management, Arete and Shape Group

Definitions

Phil IsardDirector

Building Tier 1 Tier 2 Tier 3 Fitout

Project Manager $232,700 $184,300 $165,700 $144,800

Estimator $211,800 $168,600 $138,300 $125,800

Site Manager $184,300 $164,100 $144,700 $125,600

Contract Administrator $163,600 $141,700 $114,900 $95,400

Design Manager $154,700 $136,200 $118,600 NA

Foreman $152,100 $144,300 $120,400 $107,200

Finishing Foreman $146,400 $134,600 $114,700 NA

Project Co-ordinator $106,800 $96,700 $83,600 NA

Building

Overall, the Building sector has continued to benefit from a surge in project values over the last 10 years, with Victoria’s market currently showcasing a range of developments worth over $100 million. The combination of these higher project values, along with an increased number of developments, have resulted in driving salary trends upward.

Melbourne’s increased building activity has led to skill shortages and increased competition for Tier 1 builders when it comes to attracting staff. The imbalance of the supply and demand labour equation has also necessitated a different hiring approach from Tier 1 and Tier 2 builders, who we’ve often found are employing staff from other tiers.

Across the board, we’ve seen significant jumps in salaries over the last six years. Tier 2 Contracts Administrators, for example, now enjoy an average of $141k compared to $119K in 2013, an increase of over 15%. Similarly, Tier 2 Site Managers have seen a 16% increase in salary from $138K in 2013 to an average of $164K now. Fit Out Estimators were awarded packages of $115k in 2013, with people in the same roles now being paid up to $125K, just shy of a 10% increase.

Moving forward, we expect the construction of high-rise apartments to dampen with the residential boom now behind us. In particular, this should see Tier 1 and Tier 2 builders experience a period of stabilisation. The completion of projects already in the pipeline will retain levels for the remainder of 2019, however, future years will bear the greater brunt of the decline as house prices fall and fewer projects come out of the ground.

The figures are inclusive of Salary, Super & Car or Allowance (Total Remuneration Package)

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Charles FerraroAssociate Director

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Civil Construction Tier 1 Tier 2 Tier 3

Project Manager $275,600 $224,500 $168,400

Senior Project Engineer $170,500 $166,900 $154,300

Estimator $265,200 $238,600 $146,900

Foreman / Supervisor $187,200 $143,400 $126,400

Project Engineer $146,100 $123,332 $107,175

Site Engineer $115,600 $104,002 $79,205

Design Manager $286,300 $211,900 NA

Civil Construction

The Civil Construction market is a burgeoning sector in the Victorian economy, driving capital investment as well as employment growth. With an increase in investment for transport infrastructure and a series of megaprojects kicking into gear, we’ve seen greater demand for staff along with salary increases of up to 15%.

The rollout of infrastructure projects such as the $11 billion Melbourne Metro Tunnel, the $8.3 billion Level Crossing Removal as well as the West Gate Tunnel project valued at over $6.7 billion, has contributed to these salary trends. The Suburban Roads Upgrade is also underway, with the Outer Suburban Arterial Roads (OSARs) project already kicking off in the western suburbs. As this project progresses, we’ll see further demand for Civil Construction professionals with the northern and south-eastern upgrades gearing up for commencement.

The civil boom in Victoria, however, is not solely driven by funding. The state has recorded strong population growth in recent times, increasing from 5.3 million to over 6.27 million people in just a decade. Consequently, the strain on infrastructure has driven growth in civil works across not only road and rail projects but also schools, factories and hospitals, just to name a few.

With salaries increasing by 10%-15% in recent years (and even as high as 20% in some instances), there is an expectation of further upward trends as large infrastructure projects continue to ramp up. To put this into perspective, a Senior Tier 1 Project Engineer averaged $145K in 2013 compared to $167K currently, an increase of over 13%. Tier 1 Foremen/Supervisors have seen increases of up to 20%, with average packages sitting at $187K. Changes can also be seen across lower tiers with Tier 3 Project Managers earning $147K in 2013 and the market now paying an average of $168K, a change of over 12%.

Looking ahead, it’s apparent that there isn’t enough Civil Construction talent to deliver on the needs of the industry. As a result, demand for skilled workers on roads, rail, tunnel and bridges will continue to magnify across the board and based on this, we’re also likely to see more Tier 1 and 2 companies hiring from lower tiers to bridge any talent gaps that appear.

Aaron GattConsultive Senior Recruiter

Consulting Engineering

Principal $148,349

Project Manager $120,427

Senior Engineer $110,000

Designer $105,150

Drafter $89,333

Engineer $82,481

Consulting Engineering

Across the built and infrastructure markets, we’ve seen substantial investment in projects from private, public and PPP consortiums. New state government-funded infrastructure projects have driven further demand for qualified professionals in an already candidate-short landscape. Victoria’s Consulting Engineering sector is showing no signs of slowing down and we expect continued demand for talent of limited supply. It’s inevitable that salaries will be pushed higher to secure the talent that employers need in such a competitive market.

We have already seen notable increases over the past year. Total salary packages for graduate and junior roles, however, are still comparable to previous years, ranging from $55K to $65K. The real changes can be seen within ‘intermediate’ level roles where some engineers with as little as four or five years’ experience are breaking into six-figure salaries. Senior roles are also enjoying great increases, surpassing the typical inflation adjustment offered in review season. The booming infrastructure market has led to intense competition for mid to senior level engineers – driving up salaries as companies jostle to secure staff.

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Melbourne’s infrastructure segment will continue to thrive over the next 10 years and we don’t expect to see a slowdown. With so many megaprojects currently underway and more in the pipeline, it will come as no surprise that salaries will continue to rise.

In contrast, the built and land development markets will face some challenges with cooling house prices, dwindling investment and a decline in residential building approvals. Consequently, we expect that developers will start to slow down on projects, weakening the apartment market as well as the land development space.

Bernie GuthrieConsultive Senior Recruiter

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Summary

Victoria’s surging Construction industry, helped by an influx in mega transport infrastructure projects, has resulted in talent shortages within a hyper-competitive market across the building, civil construction and consulting engineering markets. The imbalance in demand and supply of pertinent staff will continue to benefit candidates with new opportunities and higher salary packages, particularly within infrastructure.

Non-residential engineering work and construction activity looks likely to prosper for the foreseeable future, largely due to significant population growth and government-funded transport projects. We will, however, see a decline in the residential market as current projects are completed and fewer get off the ground.

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