Image: ANZAC Station render. Source: John Holland
John Holland Group (JHG) has announced it has secured a healthy pipeline of $5 billion worth of projects for 2021 that are set to bolster its economic recovery.
The group reported a loss of over $250 million before tax in 2020, thanks in part to the COVID pandemic, and chiefly due to budget blowouts on the Melbourne Metro Tunnel and West Gate Tunnel projects.
In mid-2020, JHG established a new major projects division for projects over $1.5 billion to take a more specialised approach and mitigate any risk of cost blowouts influencing other areas of the business.
The Melbourne Metro Tunnel and Sydney Metro City projects, which both caused significant financial damage, have been transferred into the major projects division.
The company’s restructure last year saw the group’s parent company, China Communications Construction Company, appoint Bo Wang as chairman, and Mark Davies as head of major projects.
Related news: John Holland Group to Restructure Construction Division
Under the new operating model, some state-level roles have been amalgamated into management at a national level, overseen by Andrew English.
The group’s loss in 2020 compounded on the $77 million loss reported at the end of 2019, the catalyst for the structural change.
The restructure is intended to dictate the success of making back the losses of the past two years, with more careful spending and strategic tendering to also assist in minimising cost blowouts.
With state governments turning to infrastructure projects to recover economies decimated by COVID lockdowns, eyes will no doubt be on key players such as JHG and Lendlease and how these companies fare in the competitive market.
The Victorian government – which also partnered with John Holland on the West Gate Tunnel project that ran over budget – is mobilising its Big Build public spending campaign, with preparations for the suburban rail loop and Airport rail projects already underway.
Richmond VIC, 3121Apply Now
Download the 2021 Construction Industry Trends, Predictions & Salary Guide Now
Over 15,000 construction professionals stay connected to industry with Conecta