News | 10 June

The Civil Contractors Federation (CCF) today welcomed Prime Minister Anthony Albanese’s announcement of a national Productivity Roundtable, to be convened by Treasurer Jim Chalmers, as a timely opportunity to address one of the greatest levers for economic growth: how we deliver infrastructure.

With around 15 per cent of the Commonwealth budget allocated to infrastructure spending, lifting productivity in this sector represents a generational opportunity.

Research by CCF shows that inefficiencies in project planning, industrial settings, procurement and workforce coordination are costing the Australian economy billions each year.

Civil infrastructure is central to Australia’s future – not just in terms of transport and energy transitions, but in delivering the water, utility and housing-enabling projects that communities rely on.

“Over the past 10-15 years, Australia has stalled when it comes to the efficient delivery of infrastructure, channelling larger sums into mega-projects that are too often plagued by delays, cost blowouts and poor return on investment,” CCF National CEO Nicholas Proud said.

“This approach has sidelined much of the industry, concentrating risk and opportunity in a narrow part of the market.

“In fact, while civil has fared better, lagging productivity in overall construction cost the nation $56 billion in 2022, according to Oxford Economics.

“If we instead activate the full breadth of Australia’s civil construction sector—building domestic capacity, upskilling our workforce, and involving contractors of all sizes—we can deliver more infrastructure for every taxpayer dollar”.

“A smarter, more inclusive delivery model would not only help avoid the budget-busting overruns that dominate headlines but also strengthen our national capacity to meet future infrastructure demand.

“This roundtable is an important step toward a whole-of-industry approach. Improving productivity isn’t just about saving money – it’s about ensuring Australia can deliver the infrastructure we need on time, on budget, and with the skilled workforce to support it.

CCF urges the roundtable to focus on practical reforms, including:

  • Modernising procurement models to reward efficiency and collaboration;
  • Reducing red tape and fast-tracking approvals;
  • Investing in workforce development to “get it right the first time”;
  • Measuring productivity through real-world outcomes, not just economic models.

“We look forward to working with the Treasurer and other stakeholders to build a more productive and future-ready infrastructure sector,” Mr Proud said.

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