Australia’s construction industry is sitting on a $60 billion-a-year productivity opportunity—and leaders say it’s time to start turning that potential into real change.

In the construction industry’s equivalent of a COP Summit, more than 120 of the nation’s most senior decision-makers from government, industry, unions and academia gathered in Brisbane for a closed-door Leaders’ Exchange, held in the lead-up to last month’s Foundations and Frontiers forum (FF25).

The Leaders’ Exchange set the agenda—bringing key players together to confront long-standing productivity challenges and discuss practical solutions. Those insights then flowed directly into FF25, the industry’s premier national forum, where 550 delegates at Nissan Arena refined the ideas and committed to action.

ACA Chief Executive Officer Jon Davies said the two events were designed to work together.

“The Leaders’ Exchange creates the blueprint for reform. FF25 is where that blueprint is stress-tested by the broader industry,” said Mr Davies.

“The key to unlocking the $60 billion prize is focusing on achievable steps. Even modest changes could deliver enormous returns. Just a few targeted reforms could generate $15.1 billion in value every year.”

Research by Oxford Economics shows the industry could unlock billions through three practical reforms:

  • Cutting indirect costs by 10% could save $5.7 billion annually.
  • Halving tender costs could free up $743 million for extra project delivery and return $2.1 billion to the economy.
  • Greater flexibility in RDOs could unlock $2.3 billion in additional work, driving a $7.3 billion boost.

“These are practical levers that could shift the dial significantly,” Mr Davies said.

Building on these insights, FF25 identified five industry-wide priorities:

  • Harmonisation and standardisation across regulations, contracts and compliance.
  • Greater financial stability for the industry to provide a platform for innovation
  • Earlier engagement and collaboration throughout project lifecycles.
  • Innovation that sticks, not just in times of crisis.
  • A skills pipeline aligned to future demand.

ACA will now focus on turning these priorities into action. This includes developing benchmarks to track productivity, working with governments to finalise and implement the National Construction Strategy and driving the adoption of the national Blueprint for the Future and the Culture Standard. Importantly, ACA will continue to partner with the Construction Industry Leadership Forum to convert the ideas into reforms that deliver measurable results.

The full FF25 Post-Event Report, Playing as one team – From Me to We, can be viewed on the Foundations and Frontiers Website: www.foundationsandfrontiers.com.au