As 2025 kicks off, construction firms across Australia are gearing up for another year of new regulations, evolving compliance measures, and industry-wide challenges.
The past year saw the industry working hard to keep up with rapid rule changes, and staying ahead of the curve will be just as crucial in 2025.
From stricter building codes to contract law updates and tougher environmental standards, businesses will need to reinforce their compliance strategies, cement their financial planning, and scaffold their operations to meet these evolving demands.
So, to help your firm lay the groundwork for a successful year, here’s a reminder of the key regulatory changes made in 2024 and what you need to be prepared for in 2025.
Rules already in the toolbox
With government crackdowns on contract terms and professional standards, businesses must ensure they continue to do their due diligence.
Two major regulatory updates that came into effect last year will continue to impact compliance within the industry throughout 2025:
- Tougher contract laws: Under the Treasury Laws Amendment (More Competition, Better Prices) Act, unfair contract terms are now more strictly enforced. Construction firms will need to ensure they properly scrutinise liquidated damages, time-bar clauses, and termination conditions to avoid potential disputes.
- Mandatory engineer registration: The Professional Engineers Act (ACT) now requires engineers to be registered, raising the bar for industry standards. This means firms must ensure their engineers meet new legal and safety requirements, reinforcing accountability and expertise across projects.
What firms should be doing now
With new rules cemented in place, businesses have had to take proactive steps to ensure they nail compliance over the past year.
Construction business management expert Leon Ward, Regional Lead for Australia and New Zealand at PlanRadar, warns firms will need to continue that approach in 2025.
“Reflecting on 2024, we’ve seen that navigating these changes requires a proactive approach from both industry professionals and regulators,” he told Build-it.
“It’s essential for businesses to stay agile by investing in continuous education and compliance management tools to remain ahead of the curve.”
“While these shifts initially posed challenges, they have also created opportunities for innovation, driving greater efficiency and helping the industry meet broader environmental and safety goals.”
New regulations to expect in 2025
Ward urges firm bosses to ensure they stay up to date with safety and environmental standards across the year ahead, with tighter regulations expected regarding waste, emissions and materials.
He says bosses should budget ahead for these increased compliance costs, and prioritise staff training throughout the year to ensure their business is not caught out.
“The shift toward more stringent environmental and worker safety standards, including new energy efficiency mandates and waste reduction practices, will require ongoing adaptation in 2025,” he explained.
“Collaboration between policymakers, businesses, and workers will remain critical to implementing these regulations effectively while fostering industry growth.”
As regulations continue to evolve, forward-thinking firms can also utilise technology to stay compliant, save time, and cut costs.
He says businesses that embrace technology, invest in compliance and stay proactive will be best positioned for success in the year ahead.
Automated compliance tracking can help firms monitor regulations in real-time and flag potential risks before they become costly problems.
Project management software can streamline compliance workflows, assign tasks, and keep all documentation in one place.
