May 2026
Protecting cost certainty
New Consult Australia report
Consult Australia’s new Protecting Cost Certainty report warns that billions in cost overruns are being locked in before projects reach construction.
The warning follows the Australian Government’s decision to allocate another $12.1 billion to new infrastructure investments in the May federal budget while scaling back Inland Rail after project costs exceeded $45 billion.
Protecting Cost Certainty finds that cost pressures are a predictable outcome when projects go to market with incomplete scope, poorly understood risk and unrealistic assumptions about time and budget.
“We keep treating cost blowouts as if they’re unexpected, when they are the outcome of decisions we make early or avoid making altogether,” says Jonathan Cartledge, Consult Australia’s Chief Executive Officer.
“In 2023, the Australian Government identified $32.8 billion in cost overruns across the federal infrastructure pipeline, shelving dozens of projects in the process. Since then, Australia’s infrastructure sector has faced increasing scrutiny, but we continue to see the same pattern play out as projects are being pushed to market before risk is assessed and scope fully developed.”
Developed in collaboration with member business WT, a project advisory firm, the report finds that cost certainty is progressively eroded across the project lifecycle.
“Contingency is not a direct substitute for scope clarity, and pricing risk late is not the same as managing it early. If we want cost certainty, we have to stop treating these as delivery problems, when they are planning problems,” says Sam Mendoza, National Infrastructure Leader & National Director at WT.
Protecting Cost Certainty identifies five actions to protect cost certainty across planning, design and delivery:
1. Put risk first by embedding risk identification and allocation from the outset
2. Scope for success by ensuring scope is complete and verified before going to market
3. Communicate clear roles and responsibilities across the project lifecycle
4. Value variations by managing them early and transparently
5. Strengthen cost management through active, disciplined processes.
Improving cost outcomes will require coordinated action across government, clients and industry.
“We can’t recover cost certainty at the end of a project. It’s built through decisions at every stage. That means engaging earlier, being clearer about risk, and resisting the pressure to move before a project is ready,” Jonathan concludes.
Download Protecting Cost Certainty.