The country’s engineering construction sector is completing work at record levels, but new project commencements are falling.
The most recent Australian construction data released by the Australian Bureau of Statistics (ABS), covering the quarter ending March 2026, reveals ongoing momentum on project completions underlined by a drop in new project commencements.
The completion of construction projects – judged by the value of work done and listed in the millions of dollars – increased during this period, as shown in the below table. The value of work done increased by 7.1 per cent in the quarter to March 2026, representing a 5.2 per cent increase in the year to March 2026.
The private sector has experienced a spike of up to 15.9 per cent, while the public sector slightly dropped by 3.5 per cent, perhaps indicating private operators are working harder on smaller pools of work while public infrastructure commitments weaken.
Comparing the trend of the value of completed work since 2018, the most recent quarter has seen that work rise to the highest point, just above the previous peak in June 2025.
This follows a period from late 2019 to late 2023 when the value of work done steadily increased from below $27.5 billion to above $35 billion, as shown in the below graph.
As shown in our previous construction data update, by plotting the seasonally adjusted value of work done (the black line in the below graph) together with the value of work specifically for the public sector and the private sector, it’s clear that the figures have not significantly increased for some time.
Future quarters may yet reveal a slight upwards trend.
If we take a look at new projects, however, a slightly different story is revealed.
The value of work commenced fell 6.2 per cent from the previous quarter, to $31 billion in original terms.
As shown in the below graph, drops are visible across the board, including both private and public sector projects.
The total value of new work has hovered around $30 billion since late 2022, which is lower than the peak in September of that year.
This echoes the sentiment of Peter Colacino, CEO of the Australian Constructors Association, who told create in June that urban civil infrastructure in Australia had passed a peak and “we now have a growing investment in defence, the building industry and our resource sector”.
Speaking to create this week following the collapse of Bathla (“the latest in a series of high-profile collapses stretching back to Probuild”, according to Colacino), he pointed to global supply chain changes at an international level as directly impacting the Australian construction pipeline.
He said global conflicts are simply “the latest black swan to land on the construction market”.
“The volatility associated with the conflict in the Middle East has hit everything from diesel to asphalt to PVC pipe,” he said. “While most of the direct cost of the conflict has been absorbed by providers, this cannot go on. Project sponsors will need to shoulder some of this unforeseeable cost.”
Preventing further insolvencies may require intervention to solidify the prospect of future work.
“Contract changes by government to better incorporate rise and fall provisions have helped to keep these projects moving. But private investors need to do to better understand their risk posed by these events.
“The construction industry is now characterised by as many as 40 insolvencies per day on average. This means one quarter of failing businesses are in the sector. This is a structural challenge that is seen not just here in Australia but globally.”
Read create‘s previous update on the Australian construction industry.
State by state
So what does the future hold for Australian construction?
In its Australian Construction Market Conditions Report, released in June 2026, project advisory firm WT outlines possible outcomes for the industry in each state and territory capital.
Use the dropdown menu below to explore the insights.
The WT verdict: “For infrastructure, long lead times and project timeframes will see Sydney maintain an elevated pipeline of major transport spend for many years to come. However, with this pipeline not being replenished, trades may ultimately depart for major markets with stronger pipelines.”
The WT verdict: “Melbourne’s construction pipeline of the industrial and education sectors should also be fairly immune to tougher economic conditions. However, Victoria’s increasingly challenged financial outlook could see construction pipelines come under pressure.”
The WT verdict: “Perhaps more than in any other city, the residential (apartments) pipeline will play a key role in the outlook for Brisbane … prices have moved past Melbourne and are among the nation’s highest, illustrating the need for supply.”
The WT verdict: “Significant defence spend has long formed part of Adelaide’s construction pipeline, but while geopolitical concerns remain high, there are fears that the Australia–UK–US security partnership (AUKUS) may not fully proceed as envisaged. This may mean planned Adelaide defence/shipbuilding works don’t eventuate.”
The WT verdict: “The infrastructure pipeline is solid but not in nearly as strong a position as building (nor the halcyon days of the early 2010s, when miningrelated infrastructure build was substantial). The infrastructure pipeline is not expected to rise substantially in coming years, although there may be potential for a strong upswing in utilities.”
The WT verdict: “The somewhat weak state of Tasmanian government finances, as well as the fragile advantage held by governments of any composition in Tasmania of late, means Tasmania’s public construction pipeline … is unlikely to be strong over the medium term.”
The WT verdict: “After many weak years, infrastructure construction has risen again in Canberra. This has been led by light rail, but several quite large/complex road projects have also been seen or are in the pipeline for the years ahead.”
The WT verdict: “The Territory’s finances are both too small and in too poor a shape for it to have the capacity to deliver much of a major project pipeline. The Territory is heavily reliant on federal (defence) spend and on a regional/global economy strong enough to boost resources investment prospects.”
“With investment in the Olympics and the Wave on the rise in Queensland, the rate of cost escalation is 50 per cent higher than Sydney or Melbourne,” Colacino said. “This gap is expected to double [by] 2028, with building work in Brisbane, the Gold Coast and the Sunshine Coast amongst the worst hit.”
The next round of ABS construction data, covering the period to June 2026, will be released at the end of this month.
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