Australia’s five-year pipeline of major public infrastructure has reached a record $242 billion, up $29 billion in a single year, according to Infrastructure Australia. On paper, that’s a generational opportunity: better transport, a faster energy transition and stronger water security. In practice, the country’s ability to build what it has promised will determine whether that opportunity pays off.
The warning signs are already visible. Infrastructure Australia estimates public infrastructure projects face a shortage of 141,000 workers, and the gap could grow to more than 300,000 by mid-2027.
A Productivity Problem Decades in the Making
Construction has fallen badly behind the rest of the economy. Labour productivity in the sector grew 17 per cent between 1994-95 and 2023-24. Across market-sector industries, it grew 64 per cent. Manufacturing recorded growth of 58 per cent.
The cost is steep. Oxford Economics estimates stagnant construction productivity costs Australia $62 billion in lost work every year. That money could instead fund hospitals, rail lines and water systems for communities waiting on them.
Massimo Franceschi, chief operating officer of Webuild Australia, says the pipeline’s sheer size raises a pointed question: how can the country extract the greatest value from each dollar invested? Public money, after all, comes from taxpayers.
What Better Delivery Could Look Like
Franceschi outlined four approaches: standardise repeatable assets, resolve constructability issues early, allocate risk to the parties best able to manage it, and transfer capability between projects and jurisdictions.
Reusable designs and standardised components for assets such as stations, substations and viaducts can cut the number of interfaces, support more efficient manufacturing and give suppliers confidence to invest, he said. Bring industry in early on design, and engineering, sequencing, logistics and supply-chain problems can be solved while options remain open and changes cost less. Collaborative contracting, he argued, can improve transparency and certainty for clients and contractors alike.
He also called for standards and requirements to align between jurisdictions, allowing skills, systems and proven solutions to carry across programs instead of being rebuilt state by state. Digital engineering, modern construction methods and more efficient manufacturing round out the list.
The Benchmark Debate
Franceschi cited two publicly reported projects, neither belonging to Webuild. Copenhagen’s M4 metro extension delivered five stations and 5.7 kilometres of tunnel over almost six years, at a cost of about $1.9 billion. Melbourne’s Metro Tunnel delivered five stations and twin nine-kilometre tunnels for a project cost of $13.48 billion.
He urged caution in comparing them. Costs depend on geology, labour markets, standards, project scope, regulation and community expectations, and the work included in each project differs. Still, the gap invites scrutiny of how public dollars are spent.
Local Knowledge, Global Experience
Local contractors bring knowledge of Australian communities, conditions, supply chains and regulation, Franceschi said. International contractors bring experience from major transport, energy, water and tunnelling programs elsewhere. Combining the two while developing local skills, suppliers and partnerships can expand industry capacity rather than replace it.
The industry, he said, can’t rely only on adding people. It has to make better use of the capability it already has. Franceschi believes Australia has the investment, pipeline and engineering talent to deliver an extraordinary decade of infrastructure.
Why This Matters:
This pipeline directs public money toward public goods: transport, clean energy and water. If construction productivity keeps lagging, taxpayers pay twice: once through higher costs and again through delays that leave communities without the services they were promised. A worker shortfall projected to top 300,000 by mid-2027 raises a bigger question about who gets trained, who gets hired and whether the benefits reach people beyond contractors winning bids. Franceschi’s proposals rely on early collaboration, clearer risk-sharing and standardised design, placing the onus on public agencies to set smart procurement rules and hold delivery partners accountable. Whether governments use that leverage will decide if $242 billion buys lasting value or just a bigger bill.