BDO Australia’s 2026 Construction Survey
BDO Australia’s 2026 Construction Survey
Original article published by BDO Australia
Geopolitical tensions, technological advancements, inflationary pressures, rising costs and increasing compliance are shaping how construction businesses operate, and their success will depend on their readiness to navigate these challenges into the future.
This year, our report captures a practical outlook on how construction leaders can protect performance now and build the capability to stay competitive.
The survey insights provide a pulse check of Australia’s construction industry and the sentiment of construction leaders across the commercial, government, industrial and residential subsectors on key themes such as productivity, artificial intelligence (AI) and environmental, social and governance (ESG) measures.
Learn more about the key challenges and opportunities for the industry, and expert insights from our real estate and construction specialists, to help safeguard your business and prepare for the future.
Over 80 per cent of respondents expect moderate to significant growth in revenue of more than five per cent, supported by sustained demand.
AI adoption remains largely unstructured, with only 12 per cent using AI regularly within a formalised governance or operating framework, suggesting the majority of organisations are at an early stage of maturity.
Productivity remains subdued, with 41 per cent reporting no change to a slight increase over the last five years, constrained by regulatory delays, labour inefficiencies and inefficient workflows.
ESG practices are increasingly embedded, with 94 per cent having implemented one sustainability initiative, but are often compliance‑led as reporting obligations continue to expand.
Australia’s construction sector is entering a period of relative stabilisation, supported by sustained infrastructure demand and a strong pipeline of work. However, the findings from BDO’s 2026 Construction Survey indicate that improving confidence has not yet translated into improved performance across all parts of the operating model.
Drawing on insights from large construction organisations across Australia, the survey explores growth and financial performance outlooks, as well as the capabilities leaders are prioritising to navigate ongoing volatility. While many organisations expect continued growth, margins remain tight and productivity outcomes are constrained by regulatory complexity, labour inefficiencies and fragmented delivery models.
The survey also points to a shift in leadership focus. AI is now widely adopted across the sector, but in most cases remains unstructured and experimental, limiting its ability to drive measurable productivity gains. This underscores the importance of moving beyond isolated use cases towards more deliberate capability and governance frameworks.
ESG considerations are now firmly embedded across construction organisations, largely driven by expanding sustainability reporting obligations and stakeholder expectations. For many, ESG remains compliance‑led, presenting an opportunity for leaders to better integrate sustainability into commercial decision‑making, risk management and long‑term value creation.
Together, the insights from this year’s survey highlight the decisions that matter most for construction leaders today: how to translate demand into sustainable performance, lift productivity through structural change and strengthen organisational capability to build resilience and competitiveness for the future.
The construction industry is evolving rapidly across the world. BDO in Indonesia recognises the importance of a resilient and forward-thinking construction sector and our construction experts can provide strategic guidance tailored to your business goals - whether you're scaling operations, identifying acquisition targets or preparing for sale.
Backed by our global network, we deliver commercially focused, technically sound solutions that help you navigate change and capitalise on new opportunities. Contact BDO in Indonesia today to discover how we support clients across the full property and construction lifecycle - from acquisition and development to management and divestment.
The Future of Australia’s Construction Industry: An Outlook on Confidence, Constraints and Capability
Geopolitical tensions, technological advancements, inflationary pressures, rising costs and increasing compliance are shaping how construction businesses operate, and their success will depend on their readiness to navigate these challenges into the future.
This year, our report captures a practical outlook on how construction leaders can protect performance now and build the capability to stay competitive.
The survey insights provide a pulse check of Australia’s construction industry and the sentiment of construction leaders across the commercial, government, industrial and residential subsectors on key themes such as productivity, artificial intelligence (AI) and environmental, social and governance (ESG) measures.
Learn more about the key challenges and opportunities for the industry, and expert insights from our real estate and construction specialists, to help safeguard your business and prepare for the future.
Key highlights
Over 80 per cent of respondents expect moderate to significant growth in revenue of more than five per cent, supported by sustained demand.
AI adoption remains largely unstructured, with only 12 per cent using AI regularly within a formalised governance or operating framework, suggesting the majority of organisations are at an early stage of maturity.
Productivity remains subdued, with 41 per cent reporting no change to a slight increase over the last five years, constrained by regulatory delays, labour inefficiencies and inefficient workflows.
ESG practices are increasingly embedded, with 94 per cent having implemented one sustainability initiative, but are often compliance‑led as reporting obligations continue to expand.
Executive summary
Australia’s construction sector is entering a period of relative stabilisation, supported by sustained infrastructure demand and a strong pipeline of work. However, the findings from BDO’s 2026 Construction Survey indicate that improving confidence has not yet translated into improved performance across all parts of the operating model.
Drawing on insights from large construction organisations across Australia, the survey explores growth and financial performance outlooks, as well as the capabilities leaders are prioritising to navigate ongoing volatility. While many organisations expect continued growth, margins remain tight and productivity outcomes are constrained by regulatory complexity, labour inefficiencies and fragmented delivery models.
The survey also points to a shift in leadership focus. AI is now widely adopted across the sector, but in most cases remains unstructured and experimental, limiting its ability to drive measurable productivity gains. This underscores the importance of moving beyond isolated use cases towards more deliberate capability and governance frameworks.
ESG considerations are now firmly embedded across construction organisations, largely driven by expanding sustainability reporting obligations and stakeholder expectations. For many, ESG remains compliance‑led, presenting an opportunity for leaders to better integrate sustainability into commercial decision‑making, risk management and long‑term value creation.
Together, the insights from this year’s survey highlight the decisions that matter most for construction leaders today: how to translate demand into sustainable performance, lift productivity through structural change and strengthen organisational capability to build resilience and competitiveness for the future.
How BDO can help
The construction industry is evolving rapidly across the world. BDO in Indonesia recognises the importance of a resilient and forward-thinking construction sector and our construction experts can provide strategic guidance tailored to your business goals - whether you're scaling operations, identifying acquisition targets or preparing for sale.
Backed by our global network, we deliver commercially focused, technically sound solutions that help you navigate change and capitalise on new opportunities. Contact BDO in Indonesia today to discover how we support clients across the full property and construction lifecycle - from acquisition and development to management and divestment.