Does the future of Australia’s built environment depend not just on competent construction, but on a revolutionary synergy between Good Builders and Great Developers?
The Australian construction sector is a powerhouse, forecast to deliver $1.38 trillion worth of building and construction work over the five years to 2028–29, representing a 16.4 per cent increase on the previous five-year period, according to Master Builders Australia (MBA) analysis of Australian Bureau of Statistics (ABS) data.
This massive pipeline, particularly in residential and civil engineering, highlights a profound national challenge: how do we deliver this volume of work sustainably, efficiently, and with the quality Australians expect?
The answer lies in transforming the traditional relationship between the builder and the developer from a transactional client-contractor arrangement into a deeply collaborative partnership driven by innovation and shared strategic goals.
The Urgency of Collaboration in a Pressured Market
Australia’s property and construction sectors are currently navigating a complex environment defined by high demand and significant headwinds.
The national focus on meeting the ambitious housing targets under the National Housing Accord, coupled with major infrastructure projects like those preparing Brisbane for the 2032 Olympics, places immense pressure on capacity.1
Despite this demand, productivity remains a critical national concern.2 Research from the Reserve Bank of Australia (RBA) shows that labour productivity in house construction has fallen by 25% since 2001–02, lagging significantly behind the broader economy’s performance.
Furthermore, costs remain elevated; the cost of materials for house construction, while slowing its pace of growth, was still up $34.7$ per cent in June 2024 compared to pre-pandemic levels in 2019, as reported by the MBA.
In this context, Brisbane Builders, facing the unique pressures of rapid population growth and the complex infrastructure needed for new developments in Brisbane, cannot afford outdated, siloed operating models.
The pursuit of greater efficiency and value requires developers and builders to leverage each other’s expertise from the earliest stages of a project.
Here is why this cohesive, strategic partnership is non-negotiable for the sector’s future success:
1. Driving Design and Cost Efficiency Through Early Engagement
The greatest potential for cost savings and efficiency gains occurs during the design phase, long before a shovel hits the ground. When a developer brings a builder in early, it allows the build team’s practical, on-the-ground expertise to influence the design.
- Constructability Review: Great developers recognise that a good builder’s value extends beyond execution. They engage early to perform a rigorous constructability review. This process can flag potential issues—like over-complex structural details or inefficient material choices—that look fine on paper but are expensive and time-consuming in practice. An early builder-developer alliance ensures that designs are not only aesthetically pleasing and market-appropriate but are also cost-effective and feasible to construct in the current Australian market.
- Value Engineering with Real-Time Input: Genuine collaboration allows for value engineering that maintains quality while optimising the project budget.3 For new developments in Brisbane, which face a tight market with surging demand, being able to quickly pivot to cost-efficient, readily available materials or prefabricated components—an area of innovation advancing at a $7.50$ per cent CAGR nationally through 2030 (Mordor Intelligence)—can be the difference between a viable and a stalled project.
2. De-risking Projects and Ensuring Financial Sustainability
The financial volatility in the Australian construction sector has been stark, with fixed-price contracts and rising costs contributing to a 4$28$ per cent jump in insolvencies to 2,832 firms in FY 2024 alone (AFR cited by Mordor Intelligence).5 This climate of financial risk demands shared responsibility and transparency between the parties.
- Transparent Cost Planning and Risk Allocation: Great developers share project risk fairly. By collaborating from the outset, developers and builders can create more accurate, live cost models that reflect the current market reality, including material price volatility and skilled labour shortages. This transparency is crucial for the financial health of both parties and helps avoid the margin erosion that has plagued the industry.
- Shared Procurement Strategies: Instead of developers dictating materials or suppliers after the design is fixed, a joint approach allows Brisbane Builders to leverage their supply chain relationships. This can secure better prices, ensure material availability, and mitigate the impact of ongoing supply chain bottlenecks, contributing to the delivery of new developments in Brisbane on time and on budget.
3. Embracing Digital Transformation and Modern Construction Methods
The construction industry lags behind other sectors in digital adoption.6 Only $35$ per cent of Australian construction firms are ‘innovation-active’, and the sector has been slow to adopt digital technologies like Building Information Modelling (BIM) and digital twin technologies, according to the RBA and industry reports. Great developers understand that technology is the path to productivity.
- Integrated Digital Workflows: A truly collaborative partnership champions the uptake of digital tools. For example, using BIM from the concept stage ensures that the design models seamlessly transition to the builder’s construction management software, eliminating data loss and reducing errors on site. This is a crucial step towards the ‘rapid uptake of digital engineering and BIM’ noted by industry observers.
- Standardisation and Pre-fabrication: Developers who partner closely with their construction team can better implement modern methods of construction (MMC), such as pre-fabrication and modular building. By standardising components across multiple new developments in Brisbane, they enable the builder to achieve economies of scale and factory-level precision, significantly improving both speed and quality.
4. Enhancing Sustainability and Resilience
With Australia’s property companies leading the world in sustainability according to the 2022 GRESB Real Estate Benchmark (Green Building Council of Australia), the demand for high Environmental, Social, and Governance (ESG) performance is non-negotiable.7
- Lifecycle Costing and Sustainable Materials: Great developers focus on the long-term value and operational efficiency of their assets, not just the upfront construction cost. Collaborating with a builder early allows for lifecycle costing—evaluating the cost of a material over its entire lifespan, including energy efficiency and maintenance. This partnership ensures that sustainability targets, such as achieving higher Green Star ratings, are designed in from day one, using the builder’s knowledge of green supply chains and local government requirements for new developments in Brisbane.
- Building a Resilient Future: Projects in Australia, especially in a state like Queensland, must be climate-resilient. A strong developer-builder partnership can integrate future-proofing elements, like flood resilience in waterfront developments or the selection of fire-resistant materials, into the initial planning, providing better long-term outcomes for the community and investors. A high-quality Brisbane Builder is essential for executing these complex, modern specifications.
5. Fostering a Culture of Innovation and Continuous Improvement
The industry’s challenges are systemic, calling for a collective effort to revitalise its approach.
- Knowledge Sharing: The best partnerships create a feedback loop. Developers gain real-time insight into market conditions, labour availability, and on-site problems, which can then inform the design of future projects. Brisbane Builders get a seat at the strategic table, sharing their expertise to help the developer create better, more viable projects. This continuous learning model, supported by an aligned strategic process, is critical for the industry’s future success.
- Attracting and Retaining Talent: By embracing advanced technology and collaborative models, developers and builders can make the construction sector more appealing to a younger, digitally native workforce. This is vital, given that BuildSkills Australia estimates the sector needs an additional 90,000 workers to meet national housing targets.8 Projects built on transparent, fair, and innovative partnerships become employers of choice, helping to ease the critical skilled-labour shortages that affect new developments in Brisbane and across Australia.
The delivery of complex and sustainable projects—from commercial towers to high-density housing—hinges on the effective fusion of two distinct but complementary disciplines.
Good builders excel at the physical craft of construction, but they require the foresight, scale, and innovative drive provided by great developers.
A great developer understands that their vision is only as strong as the execution delivered by their building partner.
In a challenging, high-stakes market, is the true legacy of a successful development not simply the quality of the structure, but the strength of the partnership that brought it to life?
This video is a report on the challenges currently facing the Queensland construction industry, including labour shortages and rising costs, which highlights the need for builders and developers to work together on new developments in Brisbane. Queensland construction industry struggling to meet demand.