What Causes Construction Delays in Australia

Construction delays in Australia can be caused by a combination of factors, often overlapping and complex. These delays can impact project budgets, timelines, and client satisfaction. 

This can affect the most modest, to the largest of all projects. Looking at two projects, the Flinders Medical Centre expansion and the new Mount Barker Hospital we can see that these have already reported cost blowouts of $96 million and $146 million respectively. The blowouts take their total projected final costs to $496 million and $366 million.

Construction Timeline and Budget Issues Affecting Large Projects

Health Minister Chris Picton said the three projects "are all on track and there is no delay to their scheduled completion dates". This was according to the auditor-general's annual report tabled in parliament, detailing that SA Health underspent its investing budget by $140 million last financial year.

The biggest underspend was on the new Women's and Children's Hospital (WCH). The South Australian government acknowledged delays in commencing construction, with the Auditor-General highlighting a substantial rise in costs compared to the original budget. 

According to the ABC, the project encountered logistical challenges and required additional resources, contributing further to the slowdown in progress.

8 Things That Can Cause Construction Delays

1. Weather Related Delays

Rain, storms, and extreme heat can cause delays and this is because Australia’s climate varies widely; heavy rainfall, cyclones, or extreme heat can halt construction, especially for outdoor works.

Particularly in Queensland, New South Wales, and Northern Territory, flooding can disrupt access and damage work in progress.

2. Labour Shortages

A shortage of qualified tradespeople (e.g., electricians, carpenters, plumbers) can slow progress. This is caused by skilled labour gaps and high demand periods, where booming housing or infrastructure markets can exacerbate labour scarcity.

Industrial disputes such as strikes or industrial action can also cause temporary or prolonged delays.

3. Supply Chain and Material Issues

Delays in steel, timber, concrete, or specialised equipment. This can be exacerbated by import/export delays, such as reliance on imported materials, transportation bottlenecks, logistics delays due to roadworks, freight issues, or regional accessibility.

4. Design and Planning Issues

Changes in project scope can mean that client-initiated design changes require rework, approval delays, or new procurement. Inaccurate project schedules or unrealistic timelines lead to bottlenecks, and this could simply be down to poor planning. 

Slow council approvals, environmental assessments, or heritage permits, are often another factor, as Australia has many desirable areas where heritage listing is tightly regulated by councils. 

5. Regulatory and Compliance Challenges

Building codes and standards, can be a factor with non-compliance issues and may require redesign or remedial work. Occupational health and safety (OHS) construction inspections can temporarily halt work if issues are found.

Environmental regulations, such as protected species, soil contamination, or heritage sites can also be a factor in slowing progress.

6. Financial and Contractual Issues

As with the governmental examples above, payment delays and budgeting delays or changes can stop work, or change the scope of work. Disagreements over scope, cost, or quality may halt construction.

7. Site and Ground Conditions

Unexpected soil or rock conditions may require redesign of foundations or excavation methods, as might contamination or pollution which would include the discovery of asbestos, chemical spills, or groundwater issues.

Access issues can be a well known headache for contractors and builders alike. Remote or urban sites with restricted access can slow delivery and setup.

8. External Factors

And lastly, it's the things that you probably never thought to even consider such as global events, pandemics, wars, or economic crises can disrupt labour, material supply, and funding.

Closer to home, community opposition or protests can temporarily halt works, especially in urban or environmentally sensitive projects. And let’s not forget technological challenges. These can cause failures in construction technology, machinery breakdowns, or digital project management issues.

Change Your Orders and Stay the Course

Consider your change orders, as well as your financial issues, such as excusable and non-excusable - or even adverse weather, supplier delays, poor design, lack of experience (owner or contractor) or unforeseen ground conditions. These are just a few of the most common causes of delay. 

Construction delays in Australia are rarely caused by a single factor—they usually arise from a mix of environmental, human, financial, regulatory, and logistical challenges. Effective risk management, realistic planning, and proactive stakeholder communication are key to minimising delays.

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