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  • Australia’s steel future hinges on containing energy costs

Western Australia gears up for 7-star energy efficiency standards

17 Mar, 2025
Western Australia gears up for 7-star energy efficiency standards



As the clock ticks down to May 1, 2025, Western Australia (WA) is on the brink of a significant shift in home construction.

New homes and apartments will be required to meet minimum 7-star energy efficiency standards under the Nationwide House Energy Rating Scheme (NatHERS), promising healthier living spaces and reduced power bills for homeowners.

The transition to 7-star ratings demands a blend of innovative design and high-performance materials.

WA’s building industry, particularly the glass processing and window fabrication sector, has been preparing for this change over the past two years.

Clinton Skeoch, Executive Director & CEO of the Australian Glass and Window Association (AGWA), emphasised the crucial role of windows in achieving higher energy ratings.

“Windows account for around 40 per cent of heat loss and 87 per cent of heat gain in Australian homes, so glazing is a key factor when it comes to achieving higher energy ratings,” Skeoch stated.

The benefits of these upgrades extend beyond energy savings.

Skeoch noted: “Better performing windows significantly enhance the comfort and health of residents while reducing energy consumption, and that makes a big difference to household running costs.”

Contrary to concerns about potential high costs, a comprehensive study commissioned by AGWA in 2024 revealed encouraging news.

The average cost to upgrade a new three to four-bedroom home from 6-star to 7-star energy efficiency was estimated at approximately $4,260, significantly lower than previous industry forecasts.

Skeoch highlighted the long-term benefits of this investment, stating: “When you factor in annual energy bill savings of hundreds of dollars, the payback on investment period for new home buyers will occur within the first few years of ownership.”

As May 1 approaches, WA’s world-class glass and window sector stands ready to meet the growing demand for higher-performing windows, having invested heavily in new plant and equipment.

This transition marks a significant step towards sustainable housing in Western Australia, promising not only environmental benefits but also long-term cost savings for homeowners.

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**The Australian Bureau of Statistics recently reported a significant growth of 563,200 people in just one year, highlighting the urgent need for robust infrastructural development to keep pace with this increase.** [CJC Management](http://www.cjcmanagement.com.au) acknowledges the government’s recently announced $10 billion housing fund initiative to construct 30,000 new homes in the next five years as a positive initial step in addressing the immediate housing needs of Australia. However, this vision needs to encompass not just housing, but the development of sustainable and resilient infrastructure to effectively support population growth. *The Intergenerational Report 2023*, recently released by the Treasurer of Australia, echoes this necessity, outlining the critical role of infrastructure in supporting socio-economic development and enabling economic and productivity growth. It highlights the continued and increasing investment in infrastructure to help reduce congestion and ensure the smooth, efficient movement of goods and people nationally and internationally. These measures are instrumental in enhancing connectivity, providing access to employment, healthcare, education, and community activities. CJC Management believes that true, sustainable growth requires a far-reaching, holistic approach. While appreciative of the government's focus on housing, the company recognises that extensive and collaborative efforts are needed beyond this sector. CJC Management Group Managing Director Colin Calder said: “The $10 billion housing fund and the Federal Government’s commitment to transport infrastructure expenditure give us a framework upon which we can construct a strong and resilient infrastructure for Australia. As the report suggests, a strategic review of the Infrastructure Investment Program and enhanced planning and coordination with states and territories are essential to improve the quality and sustainability of long-term infrastructure spending.” The Australian engineering and construction industry is changing, especially in regards to the management of project delivery risks. Calder believes that to adapt to this changing landscape, “Organisations will need to establish robust governance, incorporate thorough risk management practices, and employ advanced digital systems for accurate reporting and forecasting. Early engagement with contractors and the adoption of adaptable, performance-incentivised delivery models will be crucial for navigating this emerging industry scenario efficiently.” The construction industry continues to face numerous challenges, including escalated material costs, labour issues, and supply chain disruptions, which are contributing to poor project performance. According to KPMG, with only half of the projects being completed on time, contractors worldwide including in Australia, are under significant pressure. Despite these obstacles, there’s a substantial opportunity for improvement in the sector. Organisations handling major projects should prioritise proper delivery and procurement models, precise cost estimates, and realistic schedules. Emphasis should also be on comprehensive risk management, cost analysis, fair risk distribution, efficient project management offices, solid governance, integrated project controls, and utilising data analytics and technology to boost project performance and productivity. A growing trend is evident as the construction industry increasingly adopts diverse technologies including mobile platforms, AI, and robotic process automation. Alongside the notable surge in modular or offsite manufacturing, these advanced technologies and methods are poised to markedly enhance the industry's efficiency and overall performance. Emphasising the importance of advanced tools, the sector is turning its attention towards project management information systems, integrated project controls, building information models, and sophisticated data analytics to amplify return on investment in construction projects. ESG considerations are emerging as a central focus not just in Australia, but globally in the infrastructure and construction sectors. Organisations are actively urging the industry to embrace more environmentally sustainable practices. Calder said: “This push is resulting in a significant shift with industry leaders establishing ambitious targets for reducing carbon footprints, waste, and pollution and heightening biodiversity awareness.” In addition, there is a marked effort to enhance diversity, equity, and inclusion within the industry, all factors that are vital for future success. . “We are beginning to witness the industry not just talk about, but also act upon the belief that a diverse workforce is pivotal for enhancing project resilience. There is still a long way to go but, this industry approach effectively tackles disruption, brings fresh skills and perspectives to the forefront, and adeptly handles challenges tied to scheduling, remote working, and job site travel. To ensure continued progress, the industry needs to hold firm in its commitment to fostering inclusivity, investing in training and development, and implementing policies that support a diverse and equitable workplace,” said Calder. As Australia takes steps toward infrastructural improvement, Calder concludes that it is vital for the entire industry to look beyond traditional construction. “The inclusion of digital innovation, environmental sustainability, and workforce diversity is essential for the journey ahead. Together with other industry leaders, CJC Management is ready to share insights and collaborate extensively to ensure that our collective infrastructure robustly meets future demands and challenges particularly as our population grows,” said Calder.

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