Barry Woollam on Cost Escalation & Capital Works Feasibility

"You can't build a 2030 project using 2020 assumptions." In the third episode of our 'State of the Nation' series, Emma Bedford, General Manager of Client Relations at Connected Workplaces, sits down with Barry Woollam from Genis Advisory. With over 20 years of experience as a quantity surveyor specialising in complex health and life sciences facilities, Barry breaks down the financial realities of today's construction market.For the last three years, the industry has been consumed by noise surrounding inflation, labor shortages, and supply chain volatility. This conversation cuts through that noise. Designed specifically for C-suite leaders, property directors, and capital planning executives, this episode provides a realistic look at how to structure robust business cases and share risk collaboratively.In this episode, we cover:Cost Escalation Realities: Why acute services building costs jumped from $6,000/sqm to over $12,500/sqm post-COVID, and how global instability is causing hyper-escalation spikes.Procurement Evolution: The critical shift away from adversarial, hard-dollar lump-sum contracts toward Early Contractor Involvement (ECI).Labor Market Capability: Why the industry isn't just facing a headcount issue, but a critical capability and fatigue challenge across competing sectors.AI & Automation: How Tier-1 contractors are actually using technology for forecasting, modular coordination, and safety—rather than just hype.Sustainability as BAU: The transition of ESG from a 10–15% upfront cost premium to a "business as usual" whole-of-life OpEx benefit.Protecting ROI: Why relying on outdated pre-COVID assumptions is the biggest threat to capital works feasibilities today.🎙️ Timestamps:00:00 - Opening00:58 - Introduction & Meet Barry Woollam02:20 - The Role of a Quantity Surveyor in Capital Works03:41 - Tracking Construction Cost Escalation & 2027 Predictions06:36 - Global Instability & Hyper-Escalation Spikes07:43 - Moving Away From Adversarial Lump-Sum Contracts09:36 - The Post-COVID Market Shift & Contractor Conservatism12:14 - Labor Shortages: Headcount vs. Capability Fatigue16:11 - The Reality of AI & Tech in Construction19:18 - Costing Hyperscale Data Centers & Emerging Tech21:51 - Bridging the Gap: Consultants, Contractors & ECI27:34 - Sustainability: From Cost Premium to Business as Usual30:42 - The Biggest Risk to ROI: Outdated Assumptions32:21 - Top Three Questions Boards Must Ask Before Committing34:34 - Optimism for Australia's Infrastructure Pipeline36:13 - Closing RemarksAbout Connected Workplaces:We bring smarter thinking, technical expertise, and real-world experience together to simplify complexity and deliver with certainty. We specialize in high-performance fit-outs and mission-critical construction environments.🌐 Explore our strategic insights: https://www.connectedworkplaces.com/💼 Follow Connected Workplaces on LinkedIn: https://linkedin.com/company/connected-wor...🔔 Don't forget to Subscribe for new episodes detailing the strategic outlook of the industry.