The Australian Constructors Association (ACA) welcomes the Victorian Government’s announcement of the latest contracts under the North East Link project, despite cost pressures.

ACA CEO Jon Davies said the Eastern Freeway Upgrade and M80 Ring Road Upgrade are critical projects and contractors are geared up and ready to deliver.

“Project certainty is paramount for a sustainable construction industry, and we commend the Victorian Government for staying the course,” said Mr. Davies.

“Like most sectors, the construction industry has experienced significant cost inflation since COVID-19 but costs are only going to increase.

“The Victorian Government has entered into these contracts in a sensible and mature way that will see government and industry work collaboratively to deliver the best value to taxpayers.”

More broadly, the opportunity to enhance the value of projects nationwide is enormous which is why the ACA is calling on the federal government to bring together state and territory governments, industry and unions, to urgently develop a comprehensive National Construction Strategy.

“Implementation of the National Construction Strategy would focus on enhancing the productivity of this critical industry, ensuring the successful delivery not only of the North East Package but also addressing the historic pipeline of new projects in energy, housing, defence, transport and social infrastructure,” said Mr Davies.

ACA remains committed to working with government, industry and unions to contribute to the long-term success and sustainability of the Australian construction sector.