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FOCUS Construct recently was awarded the roof and structural upgrade project by the Brisbane City Council (BCC) for the Wynnum Manly Junior Rugby League Club. FOCUS has completed various roofing projects, services relocations and structural upgrades, all within live operating environments and this experience counts. This project involves a full roof replacement, new structural works along the box gutters and the relocation of solar panels, satellites, and mechanical units, all whilst keeping the Club open. The project is partially funded by the Federal Government and both the Club and BCC wanted a safe pair of hands and value for money.

The Aspley Hornets is one of the most successful AFL Clubs in South East Queensland, with the largest juniors player membership in Queensland. Aspley Hornets engaged FOCUS Construct through a rigorous tender process to build a new outdoor undercover area as an extension to the existing club. FOCUS completed the project in time for the 60 year celebrations and season launch on Sunday 24 March 2024. It was a carnival atmosphere, yet with a little rain, the new outdoor area worked a treat.

The Easts Leagues Club refurbishments commenced in April 2023. These works are part of their social responsibility on giving back to the very community that has helped to make the Club one of the most successful in Brisbane. FOCUS Construct has been working in live operating environments and with a flexible approach to ensure patrons and operations are minimally impacted by the construction. They are currently in the final stage which includes a new entrance to the VIP Gaming Experience. Jan Broodryk, General Manager of the Club stated, “Focus Construct have been very flexible and accommodating to meet our dynamic operational requirements at Easts Leagues Club. At times the Focus Construct team had to change their stages and construction planning to assist the Club’s operational needs, and I have been impressed how accommodating the team has been. The flexible and collaborative approach of Focus Construct assisted the club in achieving our set revenue goals in most of our operational areas thus far. We are about halfway through the renovations, and the feedback from staff and guests has been very positive”. The doors of Easts Leagues Club await your arrival!

The AHG Expo is one of Australia’s largest hospitality and gaming events and was held at the Brisbane Convention and Exhibition Centre on 20-21 March 2024. With over 4,000 visitors across the two days, FOCUS Construct was kept on their toes. FOCUS Construct had a great two days at the AHG Expo – being a first-time exhibitor they were new to the experience but met a lot of new people and businesses. They look forward to seeing them in the future. As an added bonus, their business mascot which was won at the Master Builders Awards 2023 finally received a name through their “Name the Dog” competition. FOCUS had 39 entrants and the winner was Simon Board from AVIP with the name “Lexicon” and Lex or Lexi for short.  Congratulations Simon and enjoy your $200 dining experience at Easts Leagues Club

Introduction: Queensland, Australia, is witnessing significant growth in commercial construction projects across diverse sectors. As the state's economy expands, there is a surge in the demand for office towers, educational facilities, hospitality establishments, warehouses, hotels, and defense infrastructure. This article provides an overview of the demands of building new commercial constructions within these sectors, highlighting the key considerations and potential opportunities. Office Towers: With the rise of urbanization and the growth of businesses, office towers are in high demand throughout Queensland. Constructing new office towers involves substantial investments in land acquisition, architectural design, construction materials, labor, and technological infrastructure. The financial feasibility of such projects depends on factors like location, market demand, rental rates, and the overall economic climate. Property developers and investors carefully analyze these factors to ensure a positive return on investment. Education: The education sector is experiencing a surge in demand for modern and well-equipped educational facilities. Building new schools, colleges, and universities requires a comprehensive financial plan. Factors such as the size of the institution, specialized facilities, classrooms, laboratories, libraries, and recreational areas impact the overall costs. Additionally, government funding and grants play a crucial role in the financial viability of educational construction projects. Hospitality: Queensland's thriving tourism industry creates opportunities for building new hospitality establishments. Hotels, resorts, and entertainment complexes require substantial financial investments. Factors like location, proximity to tourist attractions, size, amenities, and branding influence the financial feasibility. Developers and investors assess market demand, projected occupancy rates, and revenue potential to determine the viability of hospitality projects. Warehouses: As logistics and e-commerce industries expand, the demand for warehouses and distribution centers increases. Constructing new warehouses involves factors like land acquisition, construction materials, storage capacity, accessibility, and technological infrastructure. Developers consider the proximity to transportation networks, availability of skilled labor, and operational costs when evaluating the financial viability of warehouse projects. Hotels: Queensland's popularity as a tourist destination drives the need for new hotel constructions. The financial aspects of hotel projects involve land acquisition, construction costs, interior design, amenities, and marketing expenses. Developers analyze factors like tourist influx, average daily rates, occupancy rates, and competitive landscape to assess the profitability of hotel investments. Collaboration with reputable hotel brands can also enhance the project's financial prospects. Defense Infrastructure: Building new defense infrastructure facilities, such as training centers or bases, requires substantial financial commitments from both government and private entities. The financial feasibility is determined by factors such as the strategic importance of the location, security requirements, construction costs, technological integration, and long-term maintenance expenses. Public-private partnerships are often utilized to share the financial burden and ensure project success. Conclusion: The construction of new commercial properties in various sectors across Queensland presents both opportunities and challenges. Developers and investors need to carefully evaluate the financial feasibility of each project by considering factors such as location, market demand, construction costs, operational expenses, and potential returns on investment. Engaging in thorough financial planning, conducting market research, and collaborating with industry experts are essential for successful outcomes. With prudent decision-making and strategic investments, the commercial construction sector in Queensland can contribute to the state's economic growth and provide valuable assets for businesses, residents, and visitors alike. If you have a project that requires assistance, we are here to help. Our team is well-equipped and experienced in various fields, ready to tackle diverse challenges. Whether it's a construction venture, design project, or any other endeavor where our expertise can make a difference, we invite you to get in touch and share the details with us. We are eager to collaborate, provide solutions, and contribute to the success of your project. Let us know how we can assist you, and we'll work together to achieve your goals. FOCUS CONSTRUCT www.focusconstruct.com.au

Brisbane, the vibrant capital city of Queensland, Australia, is known for its thriving business environment and diverse industries. With a rapidly growing economy and a bustling corporate landscape, it comes as no surprise that commercial fit-outs have become an integral part of construction projects in Brisbane. These fit-outs play a crucial role in transforming empty spaces into functional and visually appealing environments that cater to the unique needs of businesses. What are Commercial Fit-Outs? Commercial fit-outs refer to the process of customizing interior spaces within commercial properties such as offices, retail stores, restaurants, and other commercial establishments. They involve designing and renovating the interior areas to optimize functionality, aesthetics, and efficiency while aligning with the brand image and objectives of the business. Importance of Commercial Fit-Outs 1. Optimized Space Utilization: Commercial fit-outs focus on maximizing the utilization of available space. By carefully planning the layout and arrangement of furniture, partitions, and equipment, businesses can create functional spaces that support their operations and workflow. 2. Reflecting Brand Identity: A well-executed commercial fit-out can effectively reflect the brand identity of a business. From the choice of colors, materials, and furnishings to the incorporation of company logos and branding elements, the fit-out can create a cohesive and visually consistent environment that resonates with the target audience. 3. Enhancing Productivity and Employee Well-being: A thoughtfully designed commercial fit-out takes into account the comfort and well-being of employees. Considerations such as ergonomic furniture, adequate lighting, proper ventilation, and breakout areas can contribute to a positive work environment, boosting employee satisfaction and productivity. 4. Creating an Inviting Customer Experience: In the retail and hospitality sectors, commercial fit-outs play a crucial role in creating an inviting and memorable customer experience. The layout, visual appeal, and ease of navigation can influence customers' perception of the business, encourage longer stays, and ultimately drive sales. 5. Future-Proofing: Commercial fit-outs are not only about the present; they also take into account future growth and changes. Flexible designs and modular setups can accommodate evolving business needs, allowing for easy modifications and expansions as the business evolves. Commercial Fit-Out Trends in Brisbane Brisbane's commercial fit-out scene has witnessed several trends that cater to the evolving needs and preferences of businesses: 1. Biophilic Design: Integrating nature-inspired elements into commercial spaces is gaining popularity. Incorporating plants, natural materials, and ample natural light not only enhances aesthetics but also promotes well-being and productivity. 2. Collaborative Spaces: With the rise of flexible work arrangements and the emphasis on collaboration, commercial fit-outs in Brisbane often feature open-plan layouts, breakout areas, and collaborative spaces that foster teamwork and communication. 3. Sustainable Practices: Environmental sustainability is a growing concern, and commercial fit-outs in Brisbane are embracing eco-friendly practices. From energy-efficient lighting and HVAC systems to recycled materials and sustainable furniture, businesses are prioritizing environmentally conscious choices. 4. Technology Integration: Brisbane's commercial fit-outs are leveraging technology to enhance functionality and connectivity. Smart systems, integrated audio-visual setups, and advanced communication infrastructure are becoming common features, enabling businesses to operate efficiently and adapt to modern work practices. Choosing a Commercial Fit-Out Partner When embarking on a commercial fit-out project in Brisbane, it is essential to select a reliable and experienced fit-out partner. Consider the following factors when making your choice: 1. Expertise and Portfolio: Look for a fit-out company with a proven track record in commercial projects and experience in your industry. 2. Design and Innovation: Assess their ability to create innovative and practical designs that align with your brand and requirements. 3. Project Management: A competent fit-out partner should be able to manage the entire process efficiently, FOCUS CONSTRUCT www.focusconstruct.com.au

Introduction The building industry has been travelling into a minor head wind for some time, but it seems the perfect storm is about to bring some change. These changes may not be new but perhaps are part of super cycles and events outside of our control. The UK commenced studies and attempting to rectify the industry in 1934 with the publication of “Reaching for the Skies” Report during the Great Depression following World War 1. This was followed up with the Simon Report in 1944. It seems these cycles are driven by the same factors and affect all contractors including those who manage risk and clients well. Historically, large contractors continue to grow due to increased demand and the need to feed the 1000’s of employees and subcontractors reliant on them. And we get to a point where the “tail is wagging the dog” similar to the 2008 GFC banking situation, in that procurement risk is passed down from client to the builder to the subcontractor, often with the lowest prices winning the work. When this occurs, the large contractors secure more and more work at lower and lower margins, and heavily rely on fixed costs over long durations of time. Now the winds of external forces hit such as the 2008 GFC (the current timber shortage is due to the earlier harvesting of most USA timber plantations and mills at the time producing a glut in the market cycle 12 years on), COVID-19, weather events such as the recent floods and war. All projects are affected by these elements, which result in contractors attempting to complete projects by the contract so they tend to use poor quality subbies, use questionable business ethics, cash flow is negative and ultimately leads to massive losses or failures. According to the CFMEU, construction contractors go bankrupt at a rate 2.5x higher than the average of all industries. The building industry and these winds are more often, than not, driven by commercial arrangements established within the financial markets. Major banks and investors want fixed price contracts, they perceive a “cost plus” contract is not value for money. Yet simple measures and targets can eliminate this. Secured creditors typically focus on the large contractors, not all stakeholders involved in a project. So, what has happened recently? Price Increases Examples: Steel prices are up 80% since January 2021. Commercial painters costs up 90% in last six months. Roof contractors not even pricing jobs at the moment. Shanghai to Sydney shipping rates 100% increase in 2021. Brisbane (SEQ) was awarded the 2032 Olympic Games and this will result in billions of dollars of both public and private investment. COVID-19 has negatively impacted global suppliers of all base materials from timber, furniture, paints, steel, etc. SEQ 2021 had nearly 60 working days of rain – from an approximately 275 working day year – a 22% downtime that costs clients and contractors. The recent SEQ and Northern NSW floods whilst having a devastating impact to people personally, there is a massive rebuild effort. Increases in global commodity prices and they are only going to continually increase following the Russia and Ukraine War. 90% of Neon global supply comes from Ukraine and 35% of Palladium global supply comes from Russia. Neon gas is one of the most important inputs to semi-conductor manufacture. Palladium is used in chip manufacture. If Russia secures control of Ukraine, then all purchases of phones, computers, cars, televisions, etc, we will be supporting this regime. How will this impact construction if the West looks for alternatives? ProBuild collapsed in February 2022 losing approximately $50m just on the 433 Queen St project. Typically, prior to these types of events they would attempt to commercially manage their way out by slapping clients with huge variations and underpaying subcontractors. There is already evidence of this. Eventually the whole house of cards collapses when the cash runs out. This begs the question… should the client, government and insurance companies take some responsibility? Condev collapses in March 2022. Perhaps they may be more proactive and empathetic to their clients and subcontractors… yet there are 100’s more builders of their size across the country that are still operating. So, it cannot just all be the external factors. In addition, Privium and ABD Group collapsed in the last few months. So, what is to come? The ATO is preparing to make changes to companies and subcontractors in attempt to make head contractors more responsible. This has been a multi decade see-saw exercise that has not really achieved much, as most subcontractors want company structure benefits rather than being a sole trader. The QBCC is continuing to push the project bank account legislation for all projects and sectors. In theory it sounds good. This will impact cashflow and make it difficult to manage the business’ financial affairs, and will not solve the subcontractor payment issue and merely increase costs to the client and end-user, especially in residential and small commercial projects. Mosiac has mentioned costs increases are unlikely to peak until mid 2022 and prudently builders and clients should be allowing another 5-10% on current pricing. Hutchinson Builders has indicated that current pricing is already up 12% from the start of 2021. From our experience, many current builders have not been passing on the full cost escalations of materials and labour. Either these cost escalations will need to settle or construction prices will continue to rise or there will be more insolvencies. Banks have increased bad debt provisions for failed loans anticipating increased levels of distress within the industry. In longer run construction such as civil and residential, many builders have workbooks full for 18-24 months and have ceased taking on new work. This will create cash flow issues for them and increased demand for trades due to the ongoing work required in health, education, residential and the Olympics. The Council of Mayors SEQ has been working with the Queensland and Commonwealth Governments on the largest “City Deal” in the country. KPMG has modelled a $58 billion boost to the economy. Surging demand for all trades for insurance companies linked to the floods and large infrastructure projects. It will leave massive gaps in the private commercial sector with prices set to increase further. The shortages of labour will continue. Roughly one third of Australia’s labour shortage is in the construction sector. The closing of international and domestic borders during COVID-19 added fuel to the fire, and this will continue with the increased project demand and competition from other nations for construction talent. Labour costs will rise and perhaps wage growth is a good outcome. A potential ticking time bomb is Evergrande. They are struggling to pay creditors more than $300 billion. Chinese supply and viability is dependent on this debt. The official cash rate remains at a historic low of 0.1%, most financial institutions have priced in 3-4 rate hikes in 2022. Yet, these forecasts were done prior to the Russian invasion of Ukraine. Inflation, unemployment and the economic recovery from the floods will be washed closely by the Reserve Bank. The price of many construction materials such as steel, glass and copper are hedged to the US dollar and will be impacted on what the US Federal Reserve does with 7% inflation. Conclusion In this market there are a few things we can all do: 1. Clients (Public and Private Sectors) and Project Managers can work with contractors or builders they trust and plan around these issues which include risk sharing on procurement, programme and price escalation. 2. Clients (Public and Private Sectors) can be more realistic about timeframes and pressures on the industry. 3. Consider alternative commercial and contract models that have been used extensively in the mining or infrastructure sectors. 4. Contractors/Builders can be more transparent with their clients. 5. Contractors/Builders can be more open with subcontractors about performance expectations and risk.