Productivity is one of the defining challenges facing Australia’s built environment. Planning delays, regulatory complexity, rising quality expectations and workforce constraints are all placing pressure on how projects are designed and delivered, and the sector is increasingly united in acknowledging this.
We recently had the opportunity to contribute to that conversation at a national level. Our Head of Modular, Andrew Morrison, represented Kapitol at the Property Council of Australia’s Victoria Productivity Challenge, joining a panel discussion focused on practical, scalable approaches to lifting performance across Victoria’s construction and property sector.
A Panel Focused on Real Solutions
Andrew joined Donna Findlay from the Department of Jobs, Skills, Industry and Regions and John Vollugi from ADP Consulting, with the discussion moderated by Stephanie Towers of the Australian Broadcasting Corporation. Together, the panel worked through the structural forces driving productivity loss in construction and explored what industry and government can each do to address them.
Andrew shared Kapitol’s perspective on the role that technology and innovation in construction can play in reducing waste, improving quality and driving greater certainty in project delivery. These are not abstract ideals. They are embedded in how we approach every build.
The Scale of the Problem
One of the most striking points raised during the discussion was the sheer scale of waste across our industry. Construction and demolition waste accounts for around 40 per cent of Australia’s total waste. Rework and inefficiency are not peripheral issues; they represent a systemic drag on productivity with real financial and environmental consequences.
Our focus on construction and sustainability is directly linked to this challenge. Reducing unnecessary waste at the source, through smarter design, better planning and more precise manufacturing, is one of the most effective levers available to the sector.
The Role of Offsite Manufacturing
Offsite manufacturing is emerging as one of the most powerful tools for addressing these challenges at scale. When components are manufactured in a controlled environment, the opportunity for defects is reduced, on-site waste is minimised and quality outcomes are more consistent. Strong quality assurance in building construction is far easier to achieve when much of the work happens away from the variables of a live construction site.
At Kapitol, our modular capability sits at the centre of how we are responding to the productivity challenge. We believe modern methods of construction have a significant role to play in improving delivery across housing and infrastructure, and the evidence for this continues to grow.
Scaling these methods, however, requires more than technical capability from individual contractors. It demands the right regulatory settings, procurement frameworks that support and reward innovation, and sustained collaboration between industry and government. That collaboration is precisely what forums like the Victoria Productivity Challenge are designed to build.
Looking Ahead
We are grateful to the Property Council of Australia and event partner dormakaba for hosting a thoughtful and solutions-focused discussion. These conversations matter. They bring together the perspectives needed to shift the dial on one of our sector’s most persistent challenges, and they help lay the groundwork for meaningful change at both industry and policy levels.
We will continue contributing to this conversation as we work to transform how construction is delivered across Australia. For more on our approach to innovation and the issues shaping the industry, visit our construction industry news and insights hub.
