Construction reform progress but pace needs to step up

Findings from a survey of the nation’s major constructors reveals government is changing the way it is buying infrastructure to deliver better value for taxpayers and support a more sustainable construction industry.

The latest report, commissioned by the Australian Constructors Association on government performance against NSW’s 10-point commitment to the construction sector, finds the New South Wales and Victorian governments are changing their approaches in delivering the record pipeline of projects.

Australian Constructors Association CEO Jon Davies said the Construction Industry Scorecard shows government has made progress, improving across 9 of the 10 commitments. “The greatest improvements have been recorded against the government’s commitments to standardise contracts and procurement methods, and develop a transparent pipeline of projects,” Mr Davies said. “In fact, the transparency of the pipeline is now exceeding expectations.”

The Australian Constructors Association commends the New South Wales and Victorian governments on their efforts but says the pace of reform needs to be increased to deliver the largest infrastructure program Australia has ever seen.

“In total, 90% of the commitments fall into the moderate ‛matching expectations’ range and, despite gains, consistent government policy continues to lag other commitments,” Mr Davies said. “Further improvements are desperately needed to address the industry’s many challenges including high rates of insolvencies, low productivity growth, lack of diversity and poor mental health.”

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