Opinion piece by Jon Davies, CEO, Australian Constructors Association
I'm not superstitious but I was interested to find that 2025 is the Year of the Snake in the Chinese zodiac.
According to Chinese astrology, the Year of the Snake is associated with transformation, renewal and spiritual growth. Snakes are known for their ability to shed their skin, symbolising the process of letting go of the old and embracing the new. It's exactly what the construction industry must do if it is to deliver all the projects it is being asked to build in 2025 and beyond.
Whist not superstitious, I am an eternal optimist. I believe that the industry could actually start to embrace new ways of working this year. Don't share my enthusiasm? Well, let's look at some scenarios that could play out during the year.
January
The High Court rejects the challenge to the appointment of an administrator to the construction division of the CFMEU. With uncertainty over his appointment removed, the administrator moves to assert his authority and take full control of the division. Attention then shifts to working with industry to remodel the bargaining process, removing opportunities for coercive control and better aligning the interests of workers and employers.
February
The review into the delivery of Queensland's $10 billion health infrastructure program finds that the best way to increase certainty of program outcome is to work with industry on the staging of the program, find ways to attract new trade contractors from interstate and incentivise best for program outcomes through procurement.
March
Staying in Queensland, the 100-day Review of Brisbane 2032 Olympic and Paralympic Games Infrastructure recommends that private finance be leveraged to build a new main stadium that will provide a true legacy for Brisbane once the games are finished. Unlike traditional Public Private Partnerships (PPPs) the stadium PPP will build on innovative models, like that used for the North East Link in Victoria, to better incentivise all parties to collaborate and manage the risks associated with bringing the project in on time and budget. The review will also recommend that a Delivery Partner be appointed to harness industry skills in managing the procurement and delivery of all other games infrastructure.
April
The National Construction Industry Forum (NCIF) publishes a Blueprint for a more Sustainable Construction Industry. The Blueprint recognises the reform initiatives already underway and sets out a process to connect and leverage these whilst filling any gaps that are found to exist.
May
Regardless of who wins the Federal Election, the importance of the construction industry is recognised with the appointment of a Minister for Construction. The primary responsibility of the new Minister is to improve productivity in the sector to ensure it can deliver all of the infrastructure that is required to serve a growing population, keep the nation safe and help it meet its decarbonisation targets. One of the first acts of the new Minister is to formally adopt the Blueprint and task the NCIF with developing practical ways to realise it.
June
The new government announces the finalisation of a National Construction Strategy. The strategy, commenced under the last federal government in partnership with state governments and industry, is designed to improve productivity in the delivery of transport infrastructure. Included in the strategy is a commitment to procurement principles focused on delivering against a broader definition of value for money (not just lowest cost).
July
The Construction Industry Culture Taskforce publishes the final version of an industry Culture Standard along with research conclusively demonstrating the benefits of incentivising a focus on improving industry culture. Delivery agencies in all jurisdictions announce that they will incorporate adherence to the standard into their procurement processes.
August
The second annual Foundations and Frontiers forum is held in Brisbane. At the Leaders' Exchange, leaders from all sectors and stakeholder groups commit to sharing key data sets across the industry in order to benchmark performance and monitor the success of reform initiatives. The plenary sessions focus on ways to leverage data and shift the industry conversation from 'me to we' in recognition of the fact that our destinies are inextricably linked.
September
The Clean Energy Finance Corporation makes project funding conditional on reporting against key result areas like development of industry skills, local content, embodied carbon and productivity.
October
In the face of rising geopolitical tensions, the Department of Defence and Industry implement a streamlined collaborative procurement process to expedite delivery of the defence infrastructure program.
November
In its first interim report, the newly created Queensland Productivity Commission recommends the permanent cancellation of the Best Practice Industrial Conditions and significant reform of the Queensland Building and Construction Commission to improve productivity and attract new entrants into the Queensland market.
December
Given promising early results from the National Construction Strategy, State and Federal Governments commit to expanding the strategy to cover social infrastructure as well as land transport.
Now I really would be an optimist if I thought all of these scenarios will actually play out. Even if just a few of these scenarios were to happen, and there is a strong likelihood that they will, the industry will finish the year in much better shape than it started.
Time for the industry to shed its skin and grow!
#movementforchange
About us:
The Australian Constructors Association is the only representative body for contractors delivering vertical and horizontal construction projects, as well as undertaking infrastructure asset management. Our members construct and service the majority of major infrastructure projects built in Australia every year. Our goal is to create a more sustainable construction industry.
