The building of new mines and resources projects is slowing, but the construction industry is confident that new government projects will give it the boost it needs.
A report by the Australian Industry Group says the total value of engineering construction work is expected to fall by 7.5 per cent in 2014/15, with a slower decline of 3.4 per cent in 2015/16.
The Ai Group said the key driver for the downturn would be the decline in mining and resources investment reducing construction in that sector by 15 per cent in 2014/15, following a period of sustained record growth.
However, government projects such as the National Broadband Network, the North West Rail Link in Sydney and the East West Link in Melbourne will help offset a decline in mining related construction.
The Ai Group on Thursday said infrastructure work is expected to record overall growth of five per cent in 2015/16.
"This largely reflects the positive influences of a lift in revenue from road and rail construction, continued growth in telecommunications infrastructure work and a further increase in revenue from other civil projects," the report said.