Fifteenth Avenue Investment: Local Contractors Key to Unlocking Economic Potential

Today’s $1 billion commitment to the Fifteenth Avenue upgrade is a win for Western Sydney, but its full economic potential can only be unlocked if local contractors are given fair opportunities to compete, says the Civil Contractors Federation NSW.

Civil Contractors Federation NSW (CCF NSW) CEO Kylie Yates said this investment, if managed well, could strengthen and enable our home-grown construction capability, driving housing and job creation.

“New South Wales’ population is booming, yet housing starts have dropped from 73,000 in FY2017 to just 41,000 in FY2024. Housing-enabling infrastructure like the Fifteenth Avenue upgrade are critical to unlocking more construction,” Ms Yates said.

“Without robust civil works like Fifteenth Avenue – and without a strong local industry to deliver them – we cannot build the homes and infrastructure our population needs.

“The key here is that in addition to enabling housing infrastructure, we need tendering reform to open the door for local small-medium contractors to take a leading role in major projects.

“Current tendering practices have shut out all but the largest multinational firms from securing significant government infrastructure contracts. It’s not healthy.”

Latest data shows over 60% of major transport contracts in NSW are too large for local contractors to bid on against multinational tier 1 companies, hurting local jobs.

“Red tape has ballooned and it’s choking industry diversity—cutting red tape will release pressure and let businesses of all sizes compete and thrive,” Ms Yates said.

“The civil industry is facing cost pressures and insolvency risks at a time when we need them the most to deliver urgent housing, energy and infrastructure for communities.

“Breaking up tender packages into smaller amounts and cutting red tape is essential for maintaining a diverse construction workforce and getting projects built.”

Analysis of ABS data by Oxford Economics Australia for CCF NSW showed that in 2023-24:

• 60% of Transport for NSW tenders awarded were valued over $500 million, locking out local SME businesses.
• Less than 1 in 4 construction tenders released by the NSW Government in 2023-24 were available to SME contractors, (ie only 23% were accessible at under $50m)
• 7 years ago, almost 1 in 2 tender packages were available to small-medium local contractors (41% were valued at under $50million)