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A chance to reset construction — but only if we confront the real issues

22 May, 2026
By Peter Colacino, CEO, Australian Constructors Association
A chance to reset construction — but only if we confront the real issues



Before and since the Federal Budget was brought down, the spotlight is once again on ensuring government can deliver the vital infrastructure needed by the community.

Maintaining the committed pipeline of investment is critical. The industry requires certainty and transparency to deliver projects cost-effectively and with minimal cost overruns.

The key way to keep projects affordable and to ensure we can meet the demand for workers, is not to cancel projects, but to focus on lifting productivity. Few reform opportunities are as significant to lifting productivity than the Commonwealth government’s proposed standalone construction industry standards.

The Commonwealth government’s announcement of consultation on new standalone construction industry standards represents one of the most significant reforms for our sector has seen in a generation. After decades of patchy oversight, inconsistent governance and entrenched behaviours, the industry finally has a chance to reset. The government’s willingness to engage on these issues is welcome and it’s critical that consultation translates into the action the industry urgently needs.

The proposed standards, focusing on quality, productivity, lawful behaviour and safe, secure, well‑paid jobs, reflect the shared priorities that industry, unions and government defined through the National Construction Industry Forum. These goals align with the Australian Constructors Association’s calls for a clear, enforceable framework that lifts conduct across the board and restores trust in the sector.

But standards must be more than aspirational statements. Unless they are practical, measurable and consistently applied, they risk becoming another set of worthy principles that fail to shift behaviour on the ground. Restoring trust requires certainty, that rules apply equally, that agreements are genuine and that lawful conduct is not optional. The departure of the CFMEU Administrator, Mark Irving KC, underscores why this reform process is so important. His tenure required a level of personal and professional courage that should not be underestimated. He played a constructive role in improving engagement with industry, and his contribution deserves recognition. But his departure also highlights that administration, by its nature, is temporary. Administration on its own will not resolve the deep-seated industrial relations issues that have plagued construction for decades. Clear standards and proper enforcement are the goal.

Without stronger oversight, clearer accountability and consistent enforcement, there is a real risk that unlawful behaviour simply re‑emerges once administration ends or shifts elsewhere in the system. Reform must address not only the symptoms but the structures and incentives that have allowed coercive conduct and criminal infiltration to persist.

This is why the consultation on new standards is so important. If designed well, the standards and the framework they sit within, can help ensure enterprise agreements are genuinely agreed, workplaces are free from coercion and intimidation, and third parties cannot dictate who contractors work with. They can also provide the certainty needed to resolve disputes efficiently, without defaulting to disruption of site activities. These are not abstract principles; they are the foundations of a modern, productive industry capable of delivering the infrastructure Australia needs at a price taxpayers can afford.

Refreshing the productivity debate has never been more critical. Construction costs have risen sharply in recent years, driven by global inflation, supply chain pressures and a chronic shortage of skilled workers. Australia now faces demand for new infrastructure that outstrips our ability to deliver it. There is more work than workers.  Lifting productivity is the only sustainable way to meet this challenge. This isn’t about doing more with less; it is about safely doing more with the resources we have.

Well‑designed standards can play a central role in lifting productivity. They can support safe, secure and well‑paid jobs while also enabling employers to make a reasonable return on their investment and the risks they are exposed to. They show people what to expect when joining the industry and establish the knowledge they will be welcomed, whether young people, apprentices, women or others.

But standards will only be effective if they sit within an enforceable framework. People need to trust that the words will deliver action. Regulators must have clear mandates, a monitoring role, sufficient resources and the ability to act. A joined‑up approach across existing regulators is essential, as is strengthening whistleblower protections so workers and businesses feel safe to report unlawful conduct. Reform must also be durable. The industry needs confidence that the work of any administrator cannot simply be undone and that coercive practices cannot be replicated elsewhere in the system.

Australia has an opportunity to create a construction industry that is safer, more productive and more sustainable for the long term. The consultation on new Commonwealth standards is an important milestone, but it will only deliver lasting change if we confront the realities of the system we have today and commit to building something better. Reform is never easy, but the cost of inaction is far greater.

This is the moment to reset the industry. We cannot afford to waste it.

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