CEDA, in partnership with WSP, is undertaking research into Australia's construction productivity challenge across major infrastructure sectors. This exclusive session will bring together a select group of industry and government leaders to examine how contracting, governance, and procurement reform could shift Australia's long-run infrastructure delivery performance.

Australia’s public infrastructure productivity outcomes are shaped not only by project complexity, but by how work is structured, governed and coordinated across the delivery chain. Construction multifactor productivity rose 2 per cent in 2023–24 following a decline the prior year, but the long-term trend remains flat and well below mid-1990s levels. 

In Australia, contracting and delivery models can materially influence productivity outcomes, particularly risk allocation, liability settings and the balance between adversarial and collaborative commercial frameworks, especially when compared globally. There is a heavy reliance on subcontracting, accounting for approximately 41 per cent of infrastructure construction. Workforce capacity is a compounding challenge. After a brief easing in 2024, labour shortages are projected to surge and could reach 300,000 workers by 2027, regional areas are forecast to quadruple between 2025 and 2027.

Governance and procurement settings, including approval pathways, risk allocation, funding certainty and accountability also influence delivery performance and abilities to innovate. The Productivity Commission has consistently found significant scope to improve public sector procurement practices and reduce bid costs, with potentially large benefits for project costs and timing. A key area of importance is how different delivery models affect collaboration, incentives and whole-of-life outcomes.

Held under Chatham House Rule, co-labs are facilitated by CEDA economists or subject matter experts and are limited to a small group of participants. Each participant is expected to actively contribute to the discussion, responding to the set focus issues and drawing on practical examples where possible, with briefing packs and set questions provided to delegates prior to the co-lab.

Attendance at this co-lab is by invitation only. Discussion from this session will be captured by the CEDA team to inform our Building Better research project. Any comments disclosed as commercially sensitive will be treated with confidence and will not be included in our summary. Please contact the CEDA team if you have further questions.