Papua New Guinea has looked towards ambitious development goals with Vision 2050 aimed to transform the country with the construction industry playing a pivotal role.
These include billions of kina invested annually in infrastructure across the country, thus the stakes are too high for business-as-usual for government agencies, private sector clients, and development partners.
In PNG, the story of construction projects often follows a frustratingly familiar script: contracts are awarded, funds disbursed, and expectations set high — only for projects to be plagued by delays, cost blowouts, substandard quality, and eventually never seeing completion.
This cycle of disappointment has eroded trust in the construction sector, leaving government agencies, businesses, and communities grappling with unfinished or poorly executed infrastructure.
Construction contractors in PNG face a complex web of issues that undermine project delivery. The root causes are multifaceted. A significant factor is the lack of technical expertise among some local contractors, which hampers their ability to manage complex projects effectively. Compounded by poor financial management, many firms struggle with budgeting, leading to incomplete projects when funds run dry.
Moreover, non-compliance with building standards, whether due to cost-cutting measures or limited awareness, results in safety hazards and inferior construction. This is exacerbated by corruption and mismanagement, with some contractors overcharging or failing to deliver on contractual obligations.
Complicating matters are supply chain disruptions, logistics, labor shortages, restrictions in FX (foreign exchange) and inconsistent government policies, which create additional hurdles for contractors trying to stay on schedule and within budget. Legal disputes over contracts are common, and the slow pace of PNG’s legal system only adds to the frustration of stakeholders seeking accountability.
However, amid these persistent challenges, companies like PNG CR Services are setting a new standard -- proving that projects can be delivered on time, within budget, and with exceptional quality, even in the country’s most remote regions.
“Delivering projects on time, within budget, and to the highest quality isn’t just a goal for us, it is our standard operating procedure. It is what separates us,” said Allan Tyson, Managing Director for PNG CR Services.
PNG CR Services’ projects can be tracked to Port Moresby, where the company is currently working on a project by the Australian High Commission-PNG to deliver accommodation for the Pacific Policing Initiative Regional Centre of Excellence, which draws training participation from across the region. Another project is with Abt Associates in the Morehead Agri-College in Western Province.
The team at PNG CR Services is committed to delivering high-quality, durable, and resilient infrastructure solutions, Tyson said.
“The progress of this project reflects the company’s commitment to deliver its services up to the required standard, quality, on time. The project also highlights the importance of environmentally friendly construction methods through the reuse and repurposing of materials,” he added.
Setting a New Standard with PNG CR Approach
While the country’s infrastructure challenges may seem endemic, PNG CR Services offers a refreshing counter-narrative. Unlike many contractors that rely heavily on large foreign workforces and neglect local capacity-building, the company’s model is rooted in national content.
Remarkably, only 5% of their direct staff are from the company headquarters, while the vast majority of construction workers and tradespeople are recruited from local villages and communities near project sites. Moreover, 10% of the workforce is female, and PNG CR focuses on a total inclusive working environment to provide opportunities for the disabled.
Localizing the workforce not only reduces costs associated with fly-in-fly-out (FIFO) labor, but also fosters community ownership and economic empowerment. By tapping local talent, PNG CR Services ensures that projects are completed, embraced, and maintained by the communities they serve.
“We have built a reputation for meeting client expectations with limited variations or cost increases unless there’s a formal change in project scope. Our success comes from robust project management, transparent financial practices, and a deep respect for the local workforce,” Tyson added.
PNG CR Services’ track record offers critical lessons for the country’s construction sector. Their success underscores the importance of:
- Strong Project Management: Effective scheduling, resource allocation, and risk mitigation are key to avoiding delays and cost overruns.
- Financial Discipline: Transparent budgeting and sound financial controls prevent the mismanagement of funds, a common pitfall for many contractors.
- Community Engagement: Involving local communities not only reduces labor costs but also enhances project sustainability.
- Adherence to Standards: Commitment to safety and quality regulations ensures durable infrastructure that serves its purpose for years to come.
PNG’s 50th Independence Jubilee marks the time for country’s construction sector to move beyond excuses and deliver the infrastructure that communities deserve – and PNG CR Services is leading the way.
