Although Prime Minster Kevin Rudd's A$300m government funding for infrastructure projects has been welcomed, it is not nearly enough to provide significantly more work for lawyers.
About A$250m in one-off grants were immediately provided to councils for new community infrastructure projects, including local libraries, parks, playgrounds and other community facilities.
Deacons partner John Sharkey said most of the work would involve very limited contractual advice, since engineers often already have contractual templates for such projects. "Some councils may seek legal advice, but smaller firms are expected to absorb most of it. I couldn't put my hand on my heart and say that a significant part of the work would flow to large firms...we will just have to find the work somewhere else," he said.
Sharkey said some lawyers may find dispute resolution work if any of the projects turn sour and complex road projects could also provide considerable work.
As it stands Brisbane City Council received the most funding (A$3m), while other councils each received about A$450,000, and those governing areas with fewer than 5,000 residents collected A$100,000. An additional pool of A$50m is available for bidding and all funds must be spent before September 2009.
There is a chance that councils will create larger projects, since further government spending is expected to be announced at the next Council of Australian Governments meeting on 29 November 2008. However, it would take many times more funding and more complexity to have a significant impact on firm workflows, he said.