Timelines for swath of Victorian construction projects blow out
Another project renewing sections of the Great Ocean Road, forecast to be completed this year, is expected to be four to six months behind schedule after already being pushed back from as far back as 2020.
The Big Housing Build, a 2020 state government commitment to build 12,000 social and affordable homes over four years, is now forecast to be completed in 2028.
The government says the $6.3 billion project will now deliver 13,300 social and affordable homes, with work on 10,100 complete or under way.
A government spokesperson said the auditor-general's report was a 'snapshot in time' and information was provided 12 months ago. Other delays outlined in the report are no longer accurate and have not been included in this article.
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'Since then, works have progressed, with Victorians reaping the benefits from these vital major projects across the state,' the spokesperson said.
Opposition major projects spokesman Evan Mulholland said the government's management of projects had become a 'slow-motion disaster'.
'Victorians pay the price with added costs and delayed projects because we have a government that rewards union thuggery instead of demanding accountability,' Mulholland said.
Improvements to Victoria's male prison system capacity, first forecast for 2023, are also delayed and unlikely to stay within budget because of black mould infestations affecting hundreds of new beds at Barwon Prison in Lara and the Metropolitan Remand Centre in Ravenhall.
The Department of Justice and Community safety is currently negotiating with the contractors of the prison project and argues the works were not completed to standard.
Infrastructure Australia's market capacity report, published in December 2024, said investment in transport projects was falling as billions of dollars more in funding flowed to energy and housing projects.
Chief executive Adam Copp said at the time that the nation's infrastructure ambitions were being challenged by skills shortages, stagnant productivity growth and the rising costs of materials.
'Construction materials on average cost around 30 per cent more than they did three years ago, and with ongoing skills shortages we simply don't have the people power we need to get the job done on time – our analysis shows 7 per cent of the pipeline, or $15 billion of planned construction work, has been hampered by project delays,' Copp said in the report.
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Copp said projects would also shift into regional areas and northern Australia, which would bring other challenges in attracting workers and supplying materials.
Roads Australia chief executive Ehssan Veiszadeh has previously warned of the impact of delays, particularly those linked to union action.
The peak body's members reported that repeated construction delays and poorer working environments added 30 per cent to the total costs of projects.
'On major public infrastructure worksites, workplace safety has not only been undermined – it has been weaponised,' Veiszadeh said.
'Worksites have been shut down for spurious reasons, sometimes costing up to $5 million a day. Often industrial action has targeted critical works such as concrete pours, which can have a cost impact of tens of millions of dollars.'
This masthead's Building Bad investigation has detailed allegations of serious misconduct across government sites over the past year, including allegations gangland-linked figures were receiving large payments from companies on publicly funded projects looking to gain favour with figures within the CFMEU.
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Another high-profile buyer's agent, Property Home Base's Julie DeBondt-Barker said while obvious solutions like disclosing vendor's reserves or requiring prices to be within 10 per cent of them made some sense, the notion would meet resistance as there could be complicating factors. But there could be solutions to minimise buyer frustration by requiring vendors to provide building and pest inspections upfront, instead of buyers paying for one at each home they consider purchasing. 'And one other thing that should be absolutely legislated is, if it's a public auction — why aren't all auction results published,' Ms DeBondt-Barker said. 'And that would give a little bit more transparency to the buyers.' Sign up to the Herald Sun Weekly Real Estate Update. Click here to get the latest Victorian property market news delivered direct to your inbox. 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