Victoria's Construction Crisis: A Call for Action Against Corruption
The construction industry in Victoria is facing a critical juncture, with industry leaders demanding stricter laws to prevent the resurgence of a notorious scandal. On February 20, 2026, construction executives from prominent companies like John Holland, Lendlease, CPB Contractors, and Acciona gathered to address the ongoing fallout from the 'Building Bad' scandal, which has exposed deep-rooted corruption and criminal involvement in Victoria's Big Build projects.
The scandal has reached a boiling point, with Alistair Maclean, the founding CEO of Victoria's anti-corruption watchdog, publicly criticizing the government, public service, and integrity agencies for their inaction. Maclean's scathing remarks, published in The Age, highlight the long-standing evidence of corruption and crime on publicly funded infrastructure projects. He argues that the government's failure to address these issues warrants an independent inquiry, but not at the expense of post-election delays.
Maclean's intervention is particularly significant given his background as a career diplomat and public servant who led the Independent Broad-based Anti-corruption Commission (IBAC) from 2013 to 2020. His call to action comes after the Allan government refused to support proposed law changes that would grant IBAC the authority to trace the misuse of public funds by private entities.
The government's stance has sparked controversy, with the opposition and the Greens pushing for more powers for IBAC. However, Labor frontbencher Ingrid Stitt dismissed the Greens' proposal as a stunt, claiming the government is working on its own IBAC reform bill. This political divide raises the question: Is the government doing enough to tackle corruption?
The scale of the problem is staggering. Geoffrey Watson, SC, a renowned barrister and anti-corruption advocate, revealed that corruption on government-funded construction sites has cost an estimated $15 billion. Watson's findings, commissioned by CFMEU administrator Mark Irving, exposed the union's infiltration by organized crime and the use of criminal associates as health and safety delegates.
Premier Allan acknowledges the existence of a 'rotten culture' but has rejected calls for a royal commission. Instead, the government has implemented measures such as stricter labor hire laws, mandatory reporting, and enhanced information sharing between law enforcement and construction regulators.
Meanwhile, construction bosses are taking matters into their own hands. At a board meeting of the Australian Constructors Association (ACA), they strategized their response, with Fair Work Commission chief Murray Furlong pointing fingers at the companies for not doing enough to combat corruption. ACA CEO Jon Davies acknowledged their role in the issue but expressed skepticism about the need for a royal commission. Instead, the ACA advocates for a statewide construction code to curb the CFMEU's control over government-funded work and a fit-and-proper-person test for union health safety delegates.
The ACA also warns that other unions are adopting similar tactics to the CFMEU. Davies emphasizes the need for legislative changes and improved governance to prevent future corruption. But the question remains: Will these measures be enough to restore trust and integrity in Victoria's construction industry?
As the debate rages on, the public awaits decisive action. The call for a royal commission or an independent inquiry gains momentum, but will the government listen? And what role should the construction companies play in this fight against corruption? Share your thoughts in the comments below, and let's keep the conversation going.
