At this month’s Federal Productivity Roundtable, there was plenty of talk about lifting national productivity including welcome discussion on tax reform and red tape reduction.
Recent Productivity Commission data confirmed what we’ve long argued: civil construction performs strongly, with productivity up 44% over the past 30 years. Building construction, meanwhile, has gone backwards, now sitting at -13% and dragging down the whole sector.
Civil contractors are always looking for ways to lift productivity, and we’re ready to work with government, agencies and industry partners to deliver better outcomes for all. While our CCF National colleagues made the case for civil at the Roundtable, we supported them by providing CCF NSW’s Top 10 priorities government could act on now.
CCF NSW Top 10 Productivity Priorities
1. Lock in stable government infrastructure investment
Stop-start funding undermines confidence. Long-term infrastructure investment lets contractors plan, hire, train and invest – and every $1 in infrastructure generates around $3 in economic activity.
2. Make the pipeline visible
Governments and industry can’t manage what we can’t see. A live, integrated pipeline across agencies means developers and contractors can plan workforce, sequencing and cashflow with confidence, while government gets more competition and better value.
3. Cut the red tape
Duplicative compliance and bloated procurement requirements waste time and money for taxpayers and industry. Cutting red tape is the single biggest lever government can pull to lift productivity at no cost.
4. Speed up approvals
Over-regulation and drawn-out approvals strangle progress. Certainty unlocks private capital, gets housing and renewable energy projects moving, and helps contractors plan and invest in people and plant with confidence.
5. Share contract risk fairly
Unfair risk pushed down the chain inflates prices and forces contractors into risks they shouldn’t carry. It’s a lose-lose which increases costs and delays. Shared and appropriate risk allocation makes projects and industry more efficient and cost-effective.
6. Diversity in project sizes to drive long-term local employment
Project bundling shuts out small-medium and regional contractors. A competitive, diverse market drives innovation, resilience and stronger local employment.
7. Standardise contracts, collaborate on delivery
Inflexible, inconsistent contract administration wastes time and money and sees contractors being unfairly punished after delivering a quality outcome. Standardised contracts and collaborative management resolve issues and claims quickly and keep projects moving.
8. Make IR fair and practical
‘Pattern’ agreements and ‘jump up’ clauses lock out flexibility and cripple smaller contractors. Fixing the Fair Work Act to stamp out unfair terms and practices would help restore fairness, protect subcontractors and improve culture.
9. Build the skills pipeline for civil
The civil workforce is the backbone of everything we build. Government must invest in skills – from training to education and skilled migration – and support industry-led diversity, so contractors have the people needed to deliver NSW’s future.
10. Test new rules for SME impact
New rules – whether on decarbonisation, tender requirements, diversity, digitisation or pre-qualifications – are too often written with big players in mind. An SME Construction Impact Test keeps requirements practical and proportionate, so smaller civil contractors stay resilient, competitive and employing local people.
Let us know if we’ve missed any! Email us at: news@ccfnsw.com