The construction sector remains one of the least digitalised industries in Australia. As demand for housing and infrastructure intensifies, the need for greater innovation and efficiency has become more urgent.
A new report released today identifies six policy opportunities to strengthen the digital transformation of the construction sector in New South Wales. The findings highlight the importance of improving coordination between federal and state initiatives, enhancing digital literacy and interoperability, strengthening cybersecurity resilience, and increasing participation of small and regional enterprises.
The project was led by a team at Western Sydney University’s Centre for Smart Modern Construction, supported by the APPI Policy Challenge Grants program. Through consultation and engagement with government and industry stakeholders, the report offers a structured approach for agencies to design, monitor, and evaluate their digitalisation initiatives in line with the recently released Infrastructure NSW Digitalisation and Data Policy.
“With coordinated actions, policymakers can foster a more connected, data-driven, and future-ready construction ecosystem that enhances productivity and reduces inefficiencies. The framework that we propose can help policymakers and practitioners to navigate this complex area and take action to boost digitalisation of the construction sector in NSW and across Australia,” said Professor Srinath Perera, lead author.
The report sets out policy opportunities for the NSW and Commonwealth Governments, including establishing a national coordinating body, embedding digital deliverables in government procurement and contracts, creating certification and capability programs to help build digital competence across the workforce, and stimulating innovation through targeted incentives and research and development support.
“This research helps to surface solutions on two critical priorities for government: housing and productivity,” added Libby Hackett, CEO of APPI. “The APPI Policy Challenge Grants program supports researchers to engage with policymakers and key industry and community stakeholders to problem-solve on the most important policy priorities in Australia, and this research demonstrates the impact that this work can have.”
A report launch event will be held on 8 December 2025 in Parramatta.
