Building & Construction in 2025 – Financial Resilience in a Changing Landscape

The Construction Industry in 2025: A Sector in Transformation

Australia’s construction industry is entering a transformative phase in 2025. With over 660 major public infrastructure projects underway, the sector is being reshaped by government investment, sustainability goals, and technological innovation. From Build-to-Rent (BTR) developments to aged care and social housing, the “living sector” is booming, driven by demand and supported by fast-tracked approvals using the pattern design book approach. However, this growth comes with challenges: labour shortages, cost pressures, and the need for accurate financial reporting—especially for builders managing long-term contracts.

Why Builders Need Financial Precision More Than Ever

At 7 Bells, we understand that builders need more than tools—they need tailored financial support. That’s why we offer:

• End-to-end project accounting

• Cash Flow management for builders

• Work in Progress (WIP) reconciliations

• Warranty insurance workpaper preparation

• Insights to manage rising costs and protect margins

Understanding WIP: The Backbone of Builder Financials

Work in Progress (WIP) represents the value of construction work completed but not yet invoiced—or vice versa. For builders working on staged contracts, WIP is critical for:

• Matching revenue and costs accurately

• Recognising profits at the right stage

• Meeting compliance requirements for warranty insurers and financiers

Incorrect WIP reporting can distort your financials, affect your licensing, and even impact your ability to secure future projects.

Industry Trends to Watch

Here are key trends shaping the construction landscape in 2025:

1.Living Sector Growth

• Build-to-Rent, student accommodation, and social housing are expanding rapidly

• Government targets aim for 1.2 million new dwellings, with incentives driving private sector participation.

2.Sustainability & ESG

• Builders are expected to measure embodied carbon and adopt green building practices

• ESG is shifting from environmental focus to include social impact and governance, especially in affordable housing.

3.Digital & Modular Innovation

• Technologies like BIM, digital twins, and prefabrication are streamlining construction

• Modular methods reduce waste and improve efficiency—ideal for BTR and aged care projects.

4.Labour & Talent Shortages

• Trades like plumbing and electrical are in high demand

• The challenge is not just availability, but quality of talent, prompting a push for upskilling and retention.

How 7 Bells Can Help?

We simplify the numbers so you can focus on building. Whether it’s preparing WIP schedules, managing warranty documentation, or navigating compliance, our team is here to support you with:

• Certified expertise in Xero and QuickBooks

• Project-wise bookkeeping and accounting with Australian-managed controls

• Industry-specific insights tailored to builders

Let’s Build Financial Resilience Together

The construction industry is evolving—and so should your financial strategy. Let 7 Bells be your partner in navigating this dynamic landscape.

Need help with your WIP schedules or project accounting? Contact us at info@7bells.com.au

References

1. Infrastructure Australia – Annual Performance Statement 2025
   https://www.infrastructureaustralia.gov.au/reports/annual-performance-statement-2025

2. Infrastructure Australia – Infrastructure Market Capacity Report
   https://www.infrastructureaustralia.gov.au/reports/2024-infrastructure-market-capacity-report

3. CPA Australia – Accounting for Construction Contracts
   https://learn.cpaaustralia.com.au/lmt/clmsCourse.prCourseDetails?site=cpapd&in_region=sg&in_rcoId=45309488&in_from_module=CLMSCATALOGV2.PRMAIN