Queensland’s infrastructure boom: the golden decade ahead

By Andrew Chapman, CEO, Queensland Major Contractors Association

Prospects for a fruitful and productive period of infrastructure construction in Queensland are currently bright.

Queensland is on the cusp of a transformative decade for the engineering and construction sector, as highlighted in Queensland Major Contractors Association’s 2024 Queensland Major Projects Pipeline Report (QMPPR). The report identifies significant investment across key sectors, including:

• Health
• Water
• Electricity (energy transition)
• Transport
• Resources and heavy industry
• The 2032 Olympic and Paralympic Games

With over $200 billion in committed and proposed investment through to 2035, Queensland’s infrastructure sector is poised for unprecedented growth. The only comparable period was between 2011 and 2015, which saw a surge in major projects, as illustrated in Figure 1.

A more diversified infrastructure pipeline

The previous construction boom was largely driven by significant investment in the resources and energy sector, including three large-scale coal seam gas (CSG) to liquefied natural gas (LNG) projects, six new coal mines, and supporting infrastructure such as rail and port upgrades. However, the upcoming wave of investment is far more diversified, with a stronger focus on transport, water and wastewater, electricity, heavy industry and resources.

This investment is spread across the state, as depicted in Figure 2.

When looking at investment across the state, the Wide Bay region’s figures are bolstered by two major projects: the Paradise Dam reconstruction and the Borumba Pumped Hydro scheme.

A period of intense activity

The 2024 QMPPR highlights that the next five years will be a busy time for the sector. Beyond engineering projects, Queensland will also see substantial investment in health and education infrastructure, alongside a projected upswing in residential building activity later in the decade. These developments, coupled with increasing competition for skills and resources from other states, will put sustained pressure on costs, industry capability, and capacity.

In this environment, collaboration between government and industry will be critical. Effective planning and procurement, early targeting of required skills, and policies that enhance productivity will be essential to delivering value-for-money outcomes.

Reflections on 2024

As a sector, we experienced significant change in 2024 as elections and policy settings adapted to meet the needs of industry and clients as well as the expectations of the public in relation to workplace practices and unlawful activities.

The CFMEU administration

One of the most significant industry developments in 2024 was the CFMEU being placed into administration. Few would have predicted this outcome at the start of the year. The 60 Minutes investigation exposed the union’s long-standing practices of bullying, intimidation and coercion, which had been a major concern for industry participants. This change presents an opportunity to reset industry culture and improve workplace conditions, making the sector more attractive to new talent.

State election and policy shifts

The election of a new LNP government has ushered in policy changes expected to benefit the construction sector, including:

• Abolition of Best Practice Industrial Conditions (BPIC): this controversial policy had been criticised for inflating project costs and reducing on-site productivity by up to 30 per cent
• Re-establishment of the Productivity Commission: the commission’s first focus will be reviewing inefficiencies in the construction sector, particularly lifting effective working days from an average of 2.8-3 per week closer to five
• Changes to right-of-entry provisions: all parties must now provide 24-hour notice before entering sites, reducing the misuse of entry rights as an industrial tactic

The industry welcomes these reforms and looks forward to working with the government to enhance productivity, ensure infrastructure delivery, and improve cost certainty.

Opportunities for 2025

Pipeline coordination

Queensland’s infrastructure pipeline has historically been fragmented, with various departments and government-owned corporations working independently. The new government has empowered the Coordinator-General to oversee project sequencing and planning, ensuring investment is prioritised effectively across health, housing, transport, water, and energy. The construction industry supports this approach and is ready to collaborate in shaping a sustainable investment plan.

Olympics infrastructure review and plan

The Olympic Delivery Authority (GIICA) is currently reassessing the infrastructure plan for the 2032 Games. The original vision for the Games included using them as a catalyst for broader economic infrastructure investment. However, this strategic focus has waned in recent years. It is crucial to ensure that Olympic infrastructure aligns with long-term regional development needs, covering transport, energy, waste, and water infrastructure. The industry is eager to contribute to this process to maximise economic and community benefits.

Boosting productivity

Over the past decade, productivity in the construction sector has declined, with Queensland now delivering approximately 30 per cent less infrastructure per dollar spent than 15 years ago, as is well illustrated in Figure 4 which shows the value of work delivered each year per employee (in 2021 dollars).

Reversing this decreasing trend in productivity requires a multi-faceted approach, including:

• Improving industrial relations to foster safer, more productive workplaces
• Updating technical specifications to facilitate the adoption of new materials and technologies
• Streamlining the lengthy business case and approval process, which currently takes four years or more
• Standardising collaborative procurement methods to improve project certainty
• Encouraging the use of automation, artificial intelligence, modularisation, and prefabrication to enhance efficiency

A mere ten per cent productivity improvement would enable the industry to deliver 100 per cent of the funded projects in 2025 – compared to the recent average of only 87 per cent.

Procurement reform

The construction sector has experienced a sharp rise in insolvencies in recent years, driven in part by flawed procurement models. The QMCA has been a strong advocate for collaborative contracting, ensuring risk is appropriately managed. Partnering with industry bodies such as the Civil Contractors Federation, the Infrastructure Association of Queensland and Consult Australia, the QMCA has been working with the Department of Transport and Main Roads to refine procurement strategies that promote sustainability and financial stability within the sector. This year we look forward to seeing the initiatives that have been developed with this progressed.

Emerging trends and opportunities

While the industry faces challenges, there are significant opportunities to improve efficiency, attract talent, and drive innovation.

Key areas of focus include:

• Policy and procurement reforms that prioritise collaboration and efficiency
• Greater adoption of digital technologies, automation, and alternative materials
• Cultural and workplace improvements to attract and retain skilled professionals

Ensuring a diverse, inclusive, and safe work environment is critical to securing the workforce needed to deliver Queensland’s infrastructure boom. By fostering a positive industry culture, offering flexible work arrangements, and improving career pathways, the sector can build the capacity required to meet future demand.

Once-in-a-generation opportunity

Queensland’s infrastructure sector is entering a defining period of growth. With the right policies, collaborative planning and a focus on productivity, the industry can successfully deliver on the investment pipeline. The QMCA and its members remain committed to working alongside government and stakeholders to drive sustainable growth, deliver value-for-money projects, and maximise the economic and community benefits of this once-in-a-generation opportunity.

As an industry, we have successfully managed large-scale investment programs before, and we are ready to do so again. Now is the time to work together to ensure Queensland’s golden decade of infrastructure delivers real outcomes for the economy, industry, and community.