Australian Constructors Association
NSW has the opportunity to become Australia's benchmark for construction productivity and project delivery, but achieving that will require changes to procurement, risk allocation and the way government and industry work together, delegates at Foundations and Frontiers 2026 heard.
Addressing the Australian Constructors Association's (ACA) flagship industry forum in Sydney yesterday, NSW Treasurer Daniel Mookhey outlined his vision for improving project delivery, strengthening industry capability and ensuring taxpayers receive greater value from the state's significant infrastructure investment program.
The Treasurer's address followed a challenge from industry leaders that while NSW is one of Australia's largest construction markets, it should also aspire to be one of the nation's most attractive places to deliver major projects.
The challenge was taken up by NSW Treasurer Daniel Mookhey, who outlined the NSW Government's vision for improving project delivery, strengthening industry capability and ensuring taxpayers receive greater value from the state's significant infrastructure investment program.
Sending a message to contractors, the Treasurer said government is looking for innovation that can be scaled and repeated across projects, not demonstrated once and set aside.
"Government is the construction sector's largest client. That gives us power, but it also gives us responsibilities. We must develop projects properly before taking them to market. We must be clearer about scope, more realistic about risk and more consistent in our requirements," said Treasurer Mookhey.
"We must engage industry earlier, make decisions faster and resolve genuine claims without allowing every issue to become an adversarial contest. We must look beyond the lowest apparent tender price and ask whether a bid is credible, deliverable and represents value over the full life of the asset.
"For too long, an unhealthy model took hold in parts of the construction industry. Contractors bid low to win the project. The tender price became the opening offer. Once construction began, claims, variations and renegotiations became the route back to profitability.
In setting a vision for the industry the industry, the Treasurer pointed to the role of industrialisation and modern methods of construction in driving the change.
"We want greater standardisation, more modern methods of construction and innovation that can be repeated across projects-not demonstrated once and then forgotten," said Treasurer Mookhey.
The Treasurer later joined ACA President Annabel Crookes for a fireside discussion examining the role government, contractors and project owners must play in improving productivity and delivering better project outcomes.
"Genuine partnership starts well before contracts are signed. It means bringing industry in early to help shape the problem, being transparent about the pipeline and creating the conditions for government and contractors to solve challenges together before they become disputes," said Ms Crookes.
"If we want to lift productivity, procurement has to be shorter, smarter and more focused on outcomes. The opportunity is to spend less time in extended, duplicative competitive processes and more time in genuine development phases where the right people are around the table early."
"The next phase of NSW infrastructure investment gives us a real opportunity to think differently about how work is packaged, sequenced and delivered.
"Where the pipeline includes repeatable assets or similar scopes, we should be looking for ways to standardise, build momentum and give industry the confidence to invest in industrialised construction, offsite manufacture and digital delivery."
ACA CEO Peter Colacino said improving productivity had become one of Australia's most important economic challenges.
"The discussion today reinforced that productivity is no longer simply a construction issue. It's a cost-of-living issue, a housing issue, and an economic issue," said Mr Colacino.
Foundations and Frontiers 2026 has brought together more than 450 leaders from construction, government, consulting and the supply chain under the theme Smarter. Stronger. Together. The forum focuses on identifying practical reforms and proven approaches that can improve productivity and lift project delivery performance across Australia.
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.
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