The completion of the independent review into Queensland’s hospital Capacity Expansion Program (CEP) has been welcomed by the Australian Constructors Association (ACA), which is urging the state government to move forward swiftly to deliver the critical health infrastructure projects now cleared for action.
The review, released on April 23, 2025, follows a period of significant cost pressures and delays for the CEP — a multi-billion dollar initiative designed to build three new hospitals, expand 11 existing facilities, and deliver the new Queensland Cancer Centre, ultimately adding thousands of hospital beds across the state.
The Queensland Government has responded with a renewed commitment to the program, promising a record investment in health infrastructure to address longstanding service gaps and population growth.
ACA CEO Jon Davies said the construction industry has already mobilised in anticipation of the program’s restart.
“Work is already underway,” said Davies.
“Contractors have structured their businesses around these projects — many have turned down other opportunities to focus on this program.
“We now need the Government to commit to the next steps and provide certainty across the pipeline,” he added, highlighting the need for clear direction to maintain momentum and avoid further disruption.
The ACA is calling for close collaboration between government and industry as the review’s recommendations are implemented.
“It’s important that CEP delivery is not considered in isolation,” said Davies.
“It should be coordinated with other major infrastructure projects in the state — such as Olympic-related works — to manage demand on construction resources and avoid unnecessary competition for labour and materials.”
While acknowledging the challenge of rising costs, the ACA remains confident that the program can be delivered within budget by leveraging industry expertise.
“Contractors have already identified practical design and construction efficiencies through value engineering,” Davies said.
“We are ready to work with Health Infrastructure Queensland to put these savings into action without delay.”
The ACA also looks forward to contributing to the government’s upcoming review of infrastructure productivity.
“There are real opportunities to reduce the cost of infrastructure projects like the CEP by lifting productivity,” said Davies.
“We want to work with government to identify where changes can be made to improve how we deliver these public assets.”
As the only national body representing major contractors in both vertical and horizontal construction, the ACA’s members are responsible for delivering the majority of Australia’s major infrastructure projects each year.
The association’s focus remains on ensuring the CEP is delivered efficiently and sustainably, benefitting Queensland communities for years to come.
