The Queensland Major Contractors Association (QMCA) has unveiled the 13th instalment of the Queensland Major Projects Pipeline Report (QMPPR), revealing a substantial increase in the pipeline’s value to $103.9 billion over the next five years, up from $92 billion in the previous year.
Andrew Chapman, CEO of the QMCA, highlighted the significance of the latest report.
EXPLORE THE REPORT’S KEY FINDINGS
DOWNLOAD THE REPORT EXECUTIVE SUMMARY
DOWNLOAD THE FULL REPORT
“Queensland is on the verge of a golden decade of infrastructure investment and delivery. We are seeing unprecedented investment in critical sectors, including hospitals, housing, energy and electricity transition, transport infrastructure, defence, water projects such as dam safety upgrades, and the Brisbane 2032 Olympic and Paralympic Games infrastructure. There is immense opportunity ahead, but we must be prepared to tackle the challenges.”
“As an industry, we welcome the increase in the total value of the 2024 pipeline. However, it is important to note that 20% or $2.4 billion of the increase in the pipeline’s total value can be attributed to published cost adjustments, reflecting the changing economic landscape.”
Chapman outlined several key industry challenges, including capability, capacity, productivity, and cost pressures.
“The opportunities that the expanding pipeline presents are vast. We need to invest in supply chain capacity to meet projected demand in sectors like quarries, concrete production, and steel fabrication,” he said. “Ensuring value for money through fit-for-purpose design and construction, enhancing productivity through digital tools, automation, and improved construction methodologies, and creating balanced policy settings, particularly in relation to Industrial Relations, will provide greater project cost and time certainty.”
He also emphasised the critical need for private sector investment to maximise public dollar impact and called for better coordination to balance demand on limited resources. “Changing policy settings to support safe, productive worksites and collaborative procurement and delivery will enable greater industry efficiency,” Chapman stated.
The QMPPR identifies a pressing need to address labour and skills shortages, urging investment in training and upskilling while leveraging technology to reduce labour demand and boost productivity. “Demand for labour and skills is outstripping supply. We must find innovative ways to train and upskill people while using technology to drive productivity improvements,” Chapman said.
The report also highlights the ripple effect caused by the Commonwealth Government’s 2023 review of infrastructure funding, which led to project delays and restructured timelines. “This has had a significant impact on Queensland’s market, with works in 2024/25 expected to be 11% less than initially predicted and a further 13% anticipated reduction in planned work delivery for the current financial year,” Chapman explained. “Projects have been rescheduled to manage increased costs on existing works as well.”
Despite the challenges, Chapman is optimistic about the future: “The next five years will be incredibly busy. In addition to engineering projects, Queensland is set to make major investments in health and education infrastructure, and later in the decade, we expect a surge in residential building activity. With competition for skills and resources across Australia, sustained pressure on costs, industry capability, and capacity is inevitable. We have an opportunity to establish a collaborative approach between government, industry, and other relevant stakeholders to deliver real sustainable best practice project delivery that incorporates safe, productive project delivery providing surety for clients on project cost and timeframes.”
The bulk of the project work – $71 billion of the approximately $104 billion pipeline – is slated for delivery between 2025/26 and 2027/28. Chapman concluded, “The pipeline is growing, and while the value has increased, it is crucial to focus on efficiency, collaboration, and strategic planning to deliver projects that benefit Queenslanders and create lasting value.”
EXPLORE THE REPORT’S KEY FINDINGS
Our Supporters
The 2024 Queensland Major Projects Pipeline Report is proudly supported by:
Gold Partners – CSQ – Construction Skills Queensland, Acciona John Holland and Webuild.
Regional Partners Brisbane – Bennett + Bennett and Tactic
Regional Partners Toowoomba – Bennett + Bennett
Regional Partners Townsville – BMD Group, Sunwater and Wulguru Technical Services
Regional Partner – Queensland Hydro
Report Partners – Degnan
Event Partners – Toowoomba and Surat Basin Enterprise, AI Group, MITEZ, Regional Development Australia Townsville and North West Queensland and Gladstone Engineering Alliance
