Better cultural practices to improve outcomes for workers on major construction sites can deliver significant benefits and help to address long-standing industry challenges, a report has found.

The Construction Industry Culture Taskforce has released the final report into the effect of applying the Culture Standard on five pilot projects.

It found that application of the standard delivered significant benefits without materially adding to project timeframes or costs.

Jon Davies, CEO of the Australian Constructors Association, welcomed the findings.

“The research puts to bed the myth that looking after workers hurts the bottom line,” Davies said.

“On the contrary—prioritising culture improves both performance and people.”

Commencing in 2018, the Construction Industry Culture Standard was developed by the Construction Industry Culture Taskforce (CICT).

The Taskforce is comprised of the Australian Constructors Association, the NSW and Victorian Governments, industry leaders and workplace researchers.

The standard aims to address ongoing cultural and workforce challenges which are impacting the industry.

These include excessive work hours, poor workplace mental health outcomes and a lack of gender and other diversity within the sector’s workforce.

In 2021, a report which the CICT commissioned BIS Oxford Economics (now Oxford Economics Australia) to prepare put the cost associated with these issues at $8 billion annually.

The Culture Standard aims to address this by establishing better practices on major construction projects.

The standard is designed to be embedded into the procurement of public infrastructure.

It sets minimum expectations around three core pillars: working hours, diversity and health and wellbeing.

Expectations under the standard include:

• Reasonable working hours, including an average work week of no more than 50 hours, five days work weeks and a two-day break (ideally on weekends) and flexible work arrangements where possible.
• Prioritisation of workforce health and wellbeing (physical and mental) through assessment and management of physical and psychological health risks as well as provision of schedules which facilitate worker wellbeing.
• Creation of a more diverse workforce and inclusive workplace through means such as setting targets to increase the representation of women, addressing gaps in gender pay and representation, providing suitable amenities and implementing practices to ensure that all workers feel welcome, valued and respected.

The standard is not prescriptive and aims to provide flexibility in terms of how it is implemented on individual projects.

To evaluate the effect of implementing the standard on projects, a research team from RMIT evaluated outcomes of applying the standard on five pilot projects.

Across these projects, results indicated that:

• There was no observable evidence that application of the standards had any discernible impact upon the time or cost involved in delivering construction projects.
• Workers preferred the 50-hour week. A strong majority of workers (both waged and salaried) who were employed on the projects indicated that they preferred a five day work week (with a max of 50 hours per week) as this provided more time to spend with family and participate in out of work activities
• Employee retention rates improved. Compared with head contractors’ standard turnover rates across their whole businesses, employee turnover was notably lower in four out of the five pilot projects.
• Workers were more productive. The majority of workers who were employed on the pilot projects believed that they were more productive as a resulted of the implementation of the standard. In particular, people experiencing a two-day break from work each week indicated they were rested rather than fatigued.’
• Female participations rates improved. All up, women accounted for 32 percent of staff employed on pilot projects. This compares to an average of 24 percent across the head contractors’ workforces more generally.
• Support for worker wellbeing was greater than is normal in the industry: Workers with high levels of mental wellbeing also saw that their workplaces were more supportive of their family life and were fairer and more respectful. Workers with high mental health also reported more positive work-life balance and less exposure to inappropriate banter in the workplace.
• Workplaces became more inclusive, with women indicating that the experienced a more positive workplace where they felt valued and welcome.

Construction Industry Culture Taskforce chair Gabrielle Trainor AO welcomed the results.

We now have the evidence,” Trainor said. “The key issues are interrelated and must be tackled together to achieve lasting positive change across the industry.

“Applying the Culture Standard to projects works.

“It helps address the industry’s acute skills shortages, improves worker wellbeing and the attractiveness of the construction industry to young people and especially to women. It pays a productivity dividend.

“We have shown that achieving the urgent step change we need requires more than good programs on wellbeing and mental health and diversity. Addressing excessive working hours and flexibility – taking a more people-centric approach through thoughtful programming – is the catalyst for meaningful, measurable culture change.”

Davies says the time to act to create a better industry is now.

“Embedding the requirements in the procurement of infrastructure works means a better work/life balance for workers, and a healthier and more productive workforce for the industry,” he said.

“The call from industry leaders is clear: if construction is to remain viable and attractive—especially to young workers—it must break free from outdated work cultures.

“The Culture Standard is not a silver bullet, but it’s a roadmap for building a construction industry that delivers for the nation and its people.

“This is our moment. Let’s not just build infrastructure—let’s build a better industry,.

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