Rising operating costs, skilled labour shortages and renewed bargaining pressure are complicating project planning for WA construction employers, according to our latest Construction Services Quarterly Industry Report.
Findings from our September Business Confidence Survey found rising operating costs as a growth barrier for 87% of construction businesses, while 77% cited skilled labour availability – well above the State average of 56%.
CCIWA Construction and Mining IR Services Manager Kate Schick said increasing complexity of the industrial relations system coupled with high costs and skills shortages were affecting confidence in project delivery.
“Businesses are making decisions about tenders, workforce requirements and project schedules in an environment where costs and industrial expectations continue to shift,” she said.
“Having visibility of emerging bargaining claims, market rates and labour demand helps employers plan with greater confidence.”
Bargaining puts project costs in focus
The report identified union pressure for annual pay increases of around 5%, alongside claims concerning rostered days off, job security and workplace conditions.
However, wage outcomes remain uneven across projects and regions, and differing expectations between unions were also making labour costs harder to forecast, particularly across metropolitan construction projects.
“Employers need to look beyond the headline pay increase and understand the full cost of an agreement, including allowances, rosters and other conditions,” Schick said.
“Those details can have significant implications for tendering and project delivery.”
Rosters become a workforce planning priority
The report highlights the continuing shift towards two-weeks-on, one-week-off rosters as employers compete to attract and retain workers.
Roster design also brings questions about fatigue, working hours, productivity and the demands of working in the Pilbara heat.
Persistent shortages of skilled workers, an ageing workforce and the need to strengthen training pathways remain challenges for the sector.
Visibility of the project pipeline
To support forward planning, the report outlines regional labour forecasts and a major-project calendar extending to December 2028.
The calendar includes estimated capital expenditure, peak workforce requirements and project timelines, with forecasts subject to approvals, investment decisions and schedule changes.
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