Construcciones Yamaro: Construction leaders call for procurement reform at FF25

(L-R): Michael Wright, national secretary of the Electrical Trades Union; Chris Donovan, assistant national secretary of the Australian Workers’ Union; Kristin Moss of the Australian Constructors Association; Alanna Herbst, chief people and communications officer at Seymour Whyte; and Michael Degotardi, chief operating officer at UGL. (Image: Australian Constructors Association)

More than 500 industry leaders gathered at Nissan Arena yesterday for Foundations and Frontiers 2025 (FF25), hosted by the Australian Constructors Association (ACA). Now in its second year, the national forum has become a rallying point for Australia’s construction sector to drive productivity reform.

FF25 brought together major contractors, clients, union heads, insurers, developers, designers and financiers, alongside representatives from all levels of government and leading industry bodies. The message was clear: if construction is to improve productivity, procurement must change.

Real-time polling confirmed this sentiment, with attendees identifying poor risk allocation and adversarial contracting as key barriers:

• 39 per cent of respondents said better risk-sharing was the most important step toward a more collaborative and high-performing industry
• 37 per cent nominated the alignment of stakeholder interests as the next most critical issue

Queensland Deputy Premier and Minister for State Development, Infrastructure and Planning, Jarrod Bleijie, delivered a keynote address, highlighting a 9 per cent fall in construction productivity in Queensland since 2018. He described it as a wake-up call, reaffirming the Queensland Government’s commitment to working hand-in-hand with industry to address the issue, particularly in the lead-up to the 2032 Olympic and Paralympic Games.

One of the most talked-about sessions was a role-reversal exercise titled ‘Speed Bargaining’, where union leaders represented employers and employer representatives took on union roles. The hypothetical negotiation centred on delivering the new Olympic Stadium, with both sides exploring shared frustrations, competing pressures and opportunities for collaboration.

Speakers included:

• Michael Wright, national secretary of the Electrical Trades Union
• Chris Donovan, assistant national secretary of the Australian Workers’ Union
• Michael Degotardi, chief operating officer at UGL
• Alanna Herbst, chief people and communications officer at Seymour Whyte

“The role reversal gave everyone a fresh perspective on the pressures and priorities each side faces,” said Herbst. “It reinforced that early collaboration and flexible thinking are key to meeting tight deadlines.”

The session evolved into a candid discussion about entrenched issues – outdated enterprise bargaining models, ongoing skill shortages, and the disconnect between productivity, safety and workforce wellbeing.

Several practical solutions were identified, including:

• Earlier and more structured union–employer engagement
• Procurement reform that incentivises collaboration
• Broader adoption of the Culture Standard and five-day work week pilots
• Increased investment in training for complex project delivery

“Training and development are a critical component to building a future-ready workforce and our agreements must ensure that workers have the skills and capabilities to safely deliver innovative infrastructure,” said Herbst. “It’s about working smarter together.”

ACA CEO Jon Davies closed FF25 by urging the sector to hold itself accountable to the commitments made.

“This forum set out to build momentum for real reform – that’s exactly what we’re doing,” said Davies. “Since FF24, we’ve seen the launch of the National Construction Strategy and an industry-backed blueprint for reform. That’s real progress. Now we must keep going to tackle the industry’s challenges ahead.”

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