Australia’s construction sector is under renewed pressure to lift its productivity game. With national productivity growth hitting historic lows, construction — which contributes nearly 10% of GDP — is under scrutiny to deliver more with fewer resources.

Alarmingly, industry data shows that productivity in the sector has declined by nearly 8% since 2002, even as wage costs have surged by more than 85% over the same period, according to the Australian Constructors Association (ACA).

Despite this urgency, the sector’s productivity levels have barely shifted in decades. And while most reform conversations focus on on-site performance, there’s a growing recognition that one of the biggest opportunities lies in streamlining the work happening in the background — in commercial, operational and finance teams.

Rethinking the Back Office

Productivity challenges in construction are often associated with labour shortages or material costs. But just as crucial — and often more controllable — are the inefficiencies buried in everyday admin processes.

From onboarding subcontractors to submitting and reviewing claims, too many of these tasks are still being managed manually. It’s common to see teams relying on a patchwork of emails, spreadsheets and PDFs, which adds layers of friction across every project.

“When builders and subcontractors are still chasing claims through inboxes and spreadsheets, productivity suffers,” says Mark Ballinger, Director of Product Strategy at Payapps. “It’s a hidden cost that shows up in delays, disputes and burnout.”

Measuring the Impact of Admin Inefficiency

Payapps’ 2024 research with quantity surveyors and contract administrators highlighted just how widespread these issues are:

• A quarter of respondents still manage progress claims manually
• More than 44% frequently deal with disputes related to claims or variations
• One in four spend 10+ hours per week on repetitive admin work

That lost time has tangible consequences — from delayed payments to increased compliance risk and reduced staff satisfaction.

Where Digital Tools Drive Value

Encouragingly, the construction sector doesn’t need to wait for new technology to emerge — the solutions already exist. In fact, the Australian Constructors Association estimates that better project management and procurement practices could unlock $56 billion in productivity capacity annually.

Companies already investing in purpose-built software are reaping clear rewards. According to Payapps data:

• Digitally advanced firms are almost twice as likely to report productivity improvements
• They’re six times less likely to receive constant status updates from subcontractors
• Many are saving 14–31 hours per week by automating claims and variations

“Technology doesn’t have to be complex to be impactful,” says Ballinger. “We see builders streamline claims and approvals in a matter of weeks, freeing their teams to focus on more strategic work.”

Construction technology like Payapps are designed to integrate with leading accounting and ERP systems, helping construction teams create a single, consistent view of progress claims, retention, and approvals. That visibility reduces disputes and improves compliance under frameworks like the Security of Payment Acts.

(Mark Ballinger)

Progress Claims: The Back-Office Bottleneck

Often viewed as routine admin, progress claims are anything but. They sit at the intersection of finance, compliance and project performance — and when mismanaged, they quickly become a source of risk.

Insights from finance professionals using Payapps reveal the extent of the challenge:

• 41% still handle claims manually
• Over half struggle to meet regulatory deadlines
• 44% say inefficiencies in the claims process contribute to staff dissatisfaction

Digitising this one process has a multiplier effect. It reduces errors, enables faster reviews, and helps project teams stay aligned.

“What’s exciting is how quickly you see the change,” Ballinger explains. “It’s not just the time saved — it’s the boost in confidence, collaboration and control across the business.”

Moving Forward

Improving productivity isn’t just about faster builds or fewer delays — it’s about better systems. Simplifying and standardising key workflows allows construction teams to unlock time, reduce stress, and ultimately deliver better outcomes.

The technology is there. The results are proven. The real shift now lies in how willing businesses are to act.

“Construction doesn’t need more bespoke tools,” Ballinger adds. “It needs practical, connected solutions that scale. Progress claim automation is a great place to start — it’s measurable, it’s fast to implement, and it touches every part of the business.”

In an environment where labour is scarce, costs are rising, and compliance is non-negotiable, operational efficiency is no longer optional — it’s a competitive advantage.

Ian Moss is Marketing Leader – Australia and New Zealand at Payapps – An Autodesk Company.”