Queensland’s major project pipeline has reached a record $127.5 billion in engineering construction planned over the next five years, a new report shows.

Released by the Queensland Major Contractors Association (QMCA), the report shows a 22.7 per cent increase in total pipeline value compared to 2024, as projects related to the 2032 Olympic and Paralympic Games add to the volume.

But the group warned that delivering the pipeline would require a dramatic increase in workforce capacity, with demand expected to rise from 26,000 construction workers today to almost 41,000 by 2029–30.

QMCA chief executive officer Andrew Chapman said the 2025 Queensland Major Projects Pipeline Report underscored the opportunity and the urgency for industry and government to work together to deliver this unprecedented wave of infrastructure.

“Queensland’s engineering construction sector has entered one of the most significant periods in its history,” Mr Chapman said.

“The size and duration of the current pipeline represent a sustained decade of opportunity for our state, but it also brings real challenges around productivity, skills, and delivery capacity.

“Unless we address these now, the full economic potential of this investment will not be realised.”

Forecasts indicate that construction costs in Queensland will rise by 7.1 per cent in 2025, with annual increases averaging above 6 per cent through to 2028 – culminating in a cumulative escalation of 37 per cent by 2029.

The report points to severe labour shortages driving the cost surge, compounded by Enterprise Bargaining Agreements locking in 5 per cent annual wage increases with no productivity offsets.

Rising insolvencies are further reducing industry capacity. On top of this, a solidifying pipeline of major projects, including the 2032 Games infrastructure and health sector investments, is intensifying competition for resources.

The QMCA said that urgent action was needed to streamline procurement and accelerate project progression.

Without this, delivery pressures would intensify, particularly against fixed deadlines, pushing required output beyond what can realistically be achieved.