Productivity crisis threatens economic future

Roads Australia (RA) is calling for a national reset on transport infrastructure delivery, warning that without action on productivity, Australia risks losing liveability, economic resilience and future growth. 

RA’s new report, Rethinking Transport Infrastructure Delivery, outlines 17 reforms across project procurement, design, and construction. Quality infrastructure and efficient transport are key liveability indicators, carrying economic, social and environmental benefits. 

“Australia’s transport infrastructure sector is under pressure. Productivity is falling, costs are rising, and delays are costing millions,” said RA CEO Ehssan Veiszadeh. “If we want to maintain our way of life and deliver the infrastructure our communities need, we must act now.” 

The report recommends three critical reforms: 

  1. Choose the right procurement model – Projects must be matched with the most appropriate delivery model, based on early engagement with industry and a clear understanding of risk and complexity. 
  2. Align design standards nationally – Disjointed construction standards, such as bridge codes and pavement specifications, across jurisdictions cause delays and unnecessary rework. 
  3. Prevent labour disruptions – Severe disruptions to labour productivity from industrial action derail timelines and inflate costs. Stronger regulation and clearer accountability are needed to keep projects on track and workers safe. 

Delays and cancellations have cost Australia more than $21 billion over the past decade. Meanwhile, construction productivity is now lower than it was in 1998–99, despite the sector employing over 1.25 million Australians and contributing nearly 8 per cent of GDP. 

“Time is money in infrastructure,” Mr Veiszadeh said. “One day of delay on a major project can cost up to $10 million. We can’t afford to keep doing things the same way and expect different results.” 

The report points to successful models of collaboration which demonstrate how smarter delivery is possible: 

  • Isle of Capri Bridge (QLD) – Early contractor involvement helped resolve complex piling challenges, saving time, reducing environmental risk, and earning industry recognition for collaboration. 
  • Level Crossing Removal Project (VIC) – Through initiatives like Project Beacon, recycled materials and outcome-based standards drove innovation and sustainability across the network. 
  • Metro West (NSW) – A dedicated precast facility enabled faster tunnel construction, reduced waste, and supported continuous operations with millimetre-level precision. 

Mr Veiszadeh said: “Governments must continue to invest in infrastructure, but industry must innovate. A more productive sector will deliver better value for money, increased market capacity and the transformative infrastructure Australians deserve,” he said. 

The report will be the focus of a national industry lunch in Brisbane on Thursday, August 21, with Queensland Productivity Commissioner Angela Moody. 

Download a copy of the report here

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