New Standard Overhauls $8B Construction Culture Issues

Australian Constructors Association

A report released today confirms that a groundbreaking Culture Standard delivers measurable improvements to some of the biggest cultural issues plaguing Australia's infrastructure construction industry – issues that cost the economy nearly $8 billion every year.

Developed by the Construction Industry Culture Taskforce (CICT), a collaboration between the Australian Constructors Association, the NSW and Victorian Governments and leading academics, the Culture Standard, through procurement, directly targets long-standing issues affecting the industry's productivity: excessive work hours, poor worker mental health and wellbeing, and lack of diversity.

"Applying the Culture Standard to projects works. It helps address the industry's acute skills shortages, improves worker wellbeing and the attractiveness of the construction industry to young people and especially to women. It pays a productivity dividend," chair of the CICT, Gabrielle Trainor AO, said today.

Led by researchers from RMIT, the CICT piloted the Standard across five major projects over two years. The outcomes, including a cost: benefit analysis show:

  • Employee turnover dropped significantly, with retention gains estimated to save the industry $383–771 million annually across NSW and Victoria.
  • Female participation increased—32% of pilot project staff were women, compared to 24 per cent industry-wide.
  • Projects trialling a 5-day work week instead of the standard 6-day model reported higher productivity and better worker wellbeing—without increasing costs or extending delivery timelines.
  • Applying the Standard had no negative effect on delivery time or project cost.

Early scepticism about the impact on cost and delivery time has been disproven. The research found no adverse impact on time or budget—only upside.

"The research puts to bed the myth that looking after workers hurts the bottom line," said Jon Davies, CEO of the Australian Constructors Association. "On the contrary—prioritising culture improves both performance and people."

The Culture Standard is designed to be embedded in the procurement of public infrastructure, making better work practices a baseline requirement, not a nice-to-have. It sets minimum expectations around three core pillars: working hours, diversity, and health and wellbeing.

"We now have the evidence," said Ms Trainor. "The key issues are interrelated and must be tackled together to achieve lasting positive change across the industry.

"We have shown that achieving the urgent step change we need requires more than good programs on wellbeing and mental health and diversity. Addressing excessive working hours and flexibility – taking a more people-centric approach through thoughtful programming - is the catalyst for meaningful, measurable culture change," she said.

"Embedding the requirements in the procurement of infrastructure works means a better work/life balance for workers, and a healthier and more productive workforce for the industry," Mr Davies said.

"The call from industry leaders is clear: if construction is to remain viable and attractive—especially to young workers—it must break free from outdated work cultures.

"The Culture Standard is not a silver bullet, but it's a roadmap for building a construction industry that delivers for the nation and its people.

"This is our moment. Let's not just build infrastructure—let's build a better industry," said Davies.

About the CICT

The Construction Industry Culture Taskforce (CICT) is a collaboration between the ACA and the Victorian and NSW Governments. It includes These funding partners have invited further representatives from the Commonwealth Department of Infrastructure, Infrastructure South Australia, Infrastructure Australia and a team of leading academics and industry participants.

The CICT has developed a Culture Standard designed to be included in the procurement of infrastructure projects. The Standard covers three interrelated areas – working hours, diversity and health and wellbeing - and would be required to be met by successful bidders on government projects. The Taskforce has worked with the major construction unions on five projects that are piloting the standard.

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