The design and construct contract was recently awarded for a large infrastructure project in Newcastle, NSW. An announcement which can represent great new work opportunities for many operators. Those in construction, earthmoving, roadmaking and materials supply may potentially benefit from this construction of stage 5 of the Newcastle Inner City Bypass. But in order to achieve full potential, cheap equipment finance may be required to purchase new machinery.
Quoting for work on these large scale project can be competitive as many business vie for this type of long-term contract. Ensuring the business is suitably set-up with the latest machinery may assist in both be granted contracts and in effectively completing the necessary works on schedule.
For operators considering work on the Newcastle Inner City Bypass project cheap equipment finance is available to purchase new machinery through Jade Finance. We provide details on the project and the finance options.
Newcastle Bypass Project
The fifth stage of the Newcastle Inner City Bypass is a $450 million infrastructure project which is funded in a joint agreement by the NSW Government and the Federal Government. In late July in a joint statement, the relevant ministers announced the awarding of the design and construct contract to Fulton Hogan. Construction will start in October this year with completion slated for 2025.
The fifth stage covers the 3.4 kilometre section from Jesmond to Rankin Park, close to the John Hunter Hospital. The bypass is seen as the much missed link in the road and when completed will cut out 11 sets of traffic lights. Quickening the trip and reducing traffic congestion.
The relevant Federal Minister, Ms Catherine King said this was an extremely large piece of infrastructure for Newcastle and could see travel times in peak hours cut by up to 80%.
Ms Natalie Ward, the Minister for Roads for the NSW Government stated that the project represented potential for around 900 new jobs to be created during construction. She described the project as transformation for the region and a great improvement for road safety.
Due to the close proximity of stage 5 to the John Hunter Hospital and Innovation Precinct, NSW Transport and NSW Health will be working closely to ensure the project aligns with the health precinct requirements.
The contract announcement covers early work for McCaffery Drive and Lookout Road. Works which will allow Fulton Hogan to accelerate later works on the interchange. The major work starts in October.
The overall project includes a number of sections including:- Newcastle Rd interchange; hospital and health precinct access via an interchange; and an interchange at Lookout Road. Along the 3.4 klm section, access structures will be constructed to allow animals and people access the bush area. Cyclists and pedestrians will also be catered for with a Newcastle Road bridge at Jesmond.
The works are extensive and will no doubt represent opportunities for many different contractors. To see if opportunities are available for your business, refer to the project information at Transport for NSW.
Upgrading Machinery with Cost-effective Finance
To ensure ongoing performance over the 3 year term of this project may require upgrading to the latest machines. Machinery manufacturers focus heavily on incorporating the latest innovations to assist operators achieve improved productivity and performance under demanding conditions.
But actually achieving overall productivity and profitability for the business may come down to the finance secured to acquire that machinery. Equipment finance which is not individually sourced and has not been negotiated at the cheapest interest rate may jeopardise the potential achievements.
Jade Finance assists operators to achieve their full potential by securing finance on new machinery at the cheapest rates and structuring the finance to specifically meet the needs of that business. The choice of the finance product can be critical to overall profitability. Operators are advised to have a discussion with their business accountant around which loan type will suit their business.
The selection of finance includes:-
- Commercial Hire Purchase
- Equipment Leasing
- Chattel Mortgage
- Rent to Buy
Options are available for those requiring No Doc, Low Docs and Bad Credit finance.
The interest rates and tax treatment vary across the selection of loan types. Currently, Chattel Mortgage is an extremely popular due to its suitability for temporary full expensing and Instant Asset Write-off. These accelerated asset depreciation can present extremely attractive tax benefits which may further add to the profitability of the equipment finance.
If you’re planning to carry out work on the Newcastle project, chat to us about how we can assist with finance on new machinery and equipment.
Contact Jade Finance 1300 000 008 to discuss cost-effective equipment finance.
DISCLAIMER: NO LIABILITY IS ACCEPTED IF ERRORS OR MISREPRESENTATIONS ARE FOUND IN THIS ARTICLE. THE ARTICLE IS PREPARED AND PRESENTED FOR GENERAL INFORMATIVE PURPOSES AND IS NOT INTENDED TO BE THE SOLE SOURCE OF INFORMATION FOR MAKING FINANCIAL DECISIONS. THOSE REQUIRING GUIDANCE AND ADVICE SHOULD CONSULT A FINANCIAL ADVISOR.