The NSW government aims to tighten oversight on major government projects through new reforms. The measures are designed to strengthen compliance, improve transparency and reinforce integrity across the construction supply chain, particularly on large-scale infrastructure developments.

The move comes amid concerns about industrial relations practices and site conduct on major NSW government projects over the past 18 months. Similar concerns have also been raised in Victoria. This has prompted broader discussion about governance, accountability and risk management across the sector.
With increased scrutiny now being placed on contractors and subcontractors, the changes signal a shift toward stronger monitoring, reporting requirements and documentation standards on publicly funded projects.

So what do the reforms involve?

What do the reforms involve?

A key part of the approach is using procurement rules to address industrial relations concerns and compliance standards. Increased oversight of construction supply chains will sit at the centre of the initiative.

Last week, the state government’s Construction Compliance Unit (CCU) advised major builders it will take a more proactive role in monitoring compliance across government-funded projects. The move signals closer oversight of both head contractors and subcontractors. This is to ensure they are meeting their industrial relations and legal obligations in a consistent and transparent manner.

The CCU has indicated it will conduct on-site and desktop audits. These will be focused on construction wages, superannuation and broader industrial relations compliance.

Builders will also be required to regularly report all subcontractors engaged on projects, including those further down the supply chain. This is likely to place greater emphasis on governance, documentation, contractor management and risk mitigation across major construction sites.

No concerns for those meeting standards

Sophie Cotsis is the NSW Industrial Relations Minister. She said the initiative is intended to support businesses that comply with their legal and industrial obligations.

“It will play a key role in protecting hardworking building and construction workers across our state and will ensure compliance and ethical standards across the entire supply chain,” she said.

“It will protect and promote businesses who do the right thing by complying with their legal and industrial obligations.”

The new initiative will commence on March 1 and is expected to be reviewed in 18 months as part of its formal evaluation process.

What have other states done?

In Victoria, the government has stated it has “zero tolerance for any sort of illegal behaviour” within the construction sector.

The state has recently passed legislation to expand the powers of its labour hire licensing authority, giving it greater oversight of labour hire operators on major projects. Builders are also required to report misconduct. Meanwhile, a dedicated police taskforce has been established to investigate conduct within the construction industry.

These measures reflect a broader push for stronger governance, regulatory enforcement and accountability across publicly funded projects.

Reforms in both NSW and Victoria send a broader message about the future direction of the construction industry. As governments place greater emphasis on transparency and accountability, there is growing recognition of the businesses and professionals who consistently meet their legal and industrial obligations.

Construction continues to offer strong and stable career pathways for those who value professionalism and clear standards. Those who can demonstrate compliance awareness, strong governance practices, supply chain oversight experience and ethical leadership may find themselves increasingly valued on major projects.

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Article References

Marin-Guzman, D (18 February 2026) ‘Cracking the code to Steve Smith’s batting success’, Financial Review, accessed 19 February 2026.