Industry warning: lift productivity or risk blowouts

Australia’s transport sector is urging the next federal government to confront declining construction productivity.

Roads Australia Chief Executive Ehssan Veiszadeh says the country’s stagnant productivity – particularly in infrastructure delivery – is fuelling project delays, inflating costs and eroding public services.

“Delays in construction are pushing back community access to critical infrastructure by months or years,” he said.

“They’re also draining government budgets, leaving less for housing, health and social services.”

The transport sector says inefficiencies in procurement, outdated standards and toxic workplace culture are adding to the burden.

Roads Australia members report that delays and poor site conditions can inflate project costs by up to 30 per cent.

Veiszadeh singled out industrial relations as a major sticking point, describing a trend of unsafe or hostile behaviour on major public worksites.

“Workplace safety has not only been undermined – it’s been weaponised,” he said.

Shutdowns over disputed safety claims have, in some cases, cost millions of dollars a day.

Particularly damaging are disruptions to concrete pours and other critical-path tasks, which can add tens of millions to total build costs.

With geopolitical uncertainty, budget pressures and a cost-of-living crisis, Veiszadeh said Australia cannot afford to tolerate inefficiency.

“This isn’t about cutting corners – productivity can rise without sacrificing fair pay or safe conditions. But it requires mutual respect, practical standards and fast resolution of disputes,” he said.

Source: Infrastructure Magazine. Read the full insights here