20 Sep 2023

The Victorian civil contracting, land development and infrastructure industries continue to face both structural and market-based challenges.

Recent events have laid bare how these challenges can expose industry, community and government to financial instability and project delivery issues. Capacity within the sector requires more sustainable, long-term solutions, with industry and government both benefiting from creating a new norm in Victoria.

About The Industry White Paper

This independent report, prepared by Urbis, has been commissioned by a partnership between the Civil Contractors Federation – Victoria, the Urban Development Institute of Australia (UDIA) and the Association of Land Development Engineers (ALDE). It provides a synthesis of the broad range of stakeholders’ views, insights and data alongside an independent investigation of economic data and trends.

The report finds that two interrelated issues need to be overcome for the industry to be placed on a sustainable trajectory. These were:

  1. Governance, procurement and policy settings are in misalignment with long-term needs; and
  2. Chronic labour and materials shortages are leading to construction productivity losses alongside significant cost escalation.

Given the interrelated nature of issues discussed, the whitepaper posits four focus themes that require government, community and industry to come together and forge new solutions. These were:

Contractual arrangements: pressures in fulfilling contracts and making financially feasible contracts need to be better resolved.

Governance:  System inefficiencies and governance is impeding the creation of value, and needs to be streamlined or overcome.

Labour supply shortages:  Labour shortages, across skills levels and trades, are chronic and anticipated to remain so. Easing barriers to entry and maintaining sector knowledge are a priority in this space.

Materials and equipment supply shortages: Issues are arising due to local and international material supply shortages and procurement barriers which require both local and global supply chain improvements.

The paper demonstrates how and why change must occur, while noting the urgency of change as affordability and economic growth continue to be threatened. 

Download the Industry White Paper.

Richard Gibbs View Profile