William Scott
By Jon Davies, CEO, Australian Constructors Association
The Australian construction industry is at a critical juncture, but it needs to shift from a “me” to “we” mindset to evolve fruitfully.
“It’s always darker before the dawn” is a well-known proverb that suggests that the most difficult times come right before things improve.
Few could argue that the construction industry has experienced difficult times of late. Insolvency rates outstrip all other industries, cost inflation remains stubbornly high whilst profitability stays low and more people leave the industry than join it. But are there any signs that things are about to improve? As it happens, I believe the answer is yes!
There is a growing realisation that without action we will simply not be able to deliver all the infrastructure and housing that the nation requires, and that has led to the development of a whole range of initiatives that should start to come to fruition this year and lead to positive change within the industry.
Focused on improving time for life, worker wellbeing and industry diversity, the groundbreaking industry culture standard will be finalised in the coming months and should then form part of procurement processes right across the country. Work is underway to develop a National Construction Strategy to improve productivity in the delivery of land transport projects. When completed later this year, the strategy could be expanded to include social infrastructure. A blueprint for a more sustainable (in the broadest sense) construction industry is being developed by the National Construction Industry Forum in time for the upcoming Federal election. It will provide a roadmap for whoever is elected to leverage existing reform initiatives, remove duplicated effort and address problem areas not currently being looked at.
As well as reform initiatives, we are seeing positive change come from unexpected places. Industrial relations in the construction industry have long been a source of conflict but last year’s media exposé of illegal and intimidatory practices brought about a seismic change that few could have seen coming. Whilst there are likely more twists and turns to come, the industry has a real opportunity to reset industrial relations for the benefit of all stakeholders.
Before we all get too excited, I must make an important caveat. For this reset, and all of the initiatives I have mentioned to be successful, there needs to be a collective mind shift by everyone in the industry. We need to move from “me” to “we”.
For too long, the industry has largely operated as a zero-sum game of every person for themselves, or a focus on how I can get the best outcome for me irrespective of what that means for anyone else. This mentality applies equally between different stakeholder groups – such as contractors and designers or contractors and clients – and even between individual members of stakeholder groups, like contractor versus contractor. It is an approach that, at an industry level at least, is fundamentally flawed as it ignores the interconnected nature of the industry. We can’t consider ourselves in isolation as we are all dependent on others.
A “we” mindset changes that. It begins with recognising that everyone in the construction ecosystem has a role in driving change and we will all benefit from it. A broader focus on value for money can deliver improved project outcomes whilst increasing industry profitability. Improved productivity can create more jobs not less. Reduced prescription in design can deliver more innovation.
This isn’t just wishful thinking. Across Australia, we’ve seen collaboration deliver real results. Alliancing contracts bring stakeholders together under shared goals and risk-sharing agreements. Projects with early contractor involvement identify and resolve issues upfront, leading to better delivery outcomes. But true change requires more than structural adjustments – it requires a cultural shift. We need to let go of old habits and ask: what can I bring to the table to help everyone succeed?
Leadership will drive that change and that’s why the Australian Constructors Association is making this cultural shift a key focus of the Foundations and Frontiers forum in August. Modelled on the COP and Davos summits, this gathering will bring together industry leaders, policymakers and stakeholders to ask and answer the big questions: How can you help me so that I can help you? Foundations and Frontiers will be a genuine opportunity for everyone to participate in the “me to we” conversation.
It’s time to rise and shine. The new dawn is closer than you think!
