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Understanding Types of Construction Projects in Australia: Residential, Commercial, Civil & Industrial

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Last Updated Mar 7, 2025

By

Last Updated Mar 7, 2025

Photo of worker on a commercial construction space

The construction industry in Australia is a significant contributor to the country’s economy. It encompasses a wide range of activities, from the construction of residential homes to large-scale infrastructure projects. Understanding the different types of construction is crucial for effective project management, risk assessment, and compliance with safety regulations. This article will delve into four main types of construction in Australia.

Table of contents

What are the Different Types of Construction?

We can categories types of construction as: residential, commercial & infrastructure, civil and industrial. Categorising construction projects by type is important because it helps to define the specific requirements, challenges, and risks associated with each category. Different types of construction require different skill sets, materials, equipment, and safety procedures. By understanding these differences, construction professionals can better plan, execute, and manage projects, ensuring safety, compliance, and financial success.

Residential

Residential construction involves the building, assembly, and renovation of housing structures. This category encompasses a wide range of projects, from single-family homes to high-rise apartment buildings. Garages and outbuildings are also included in this category.

Residential construction projects typically involve general contractors who are responsible for all construction stages. They may hire subcontractors for specialised trades such as electrical, mechanical, and structural work. The scale and complexity of the project determine the construction team and the number of architects and construction engineers involved. For example, a single-story home may require only one architect, while a large apartment complex may need an architecture firm

Commercial & Infrastructure

Commercial and infrastructure construction encompasses the building, assembly, and renovation of structures intended for commercial or public use. This category includes a wide variety of projects, such as:

  • Shopping centres and retail stores
  • Schools and universities
  • Sports arenas and stadiums
  • Hospitals
  • Office buildings

These projects can be funded by private companies, individuals, or government agencies. For example, government funding is common for projects like stadiums, schools, and hospitals.

Like residential construction, commercial and institutional projects often involve construction companies that contract subcontractors for specialised trades. Architects and engineers are responsible for the design of these structures, and specialists may be consulted to ensure that the building is functional for its intended purpose.

A major difference between residential and commercial construction is the sharp increase in financial risk. Project owners in the commercial space will almost certainly need approval from a governing body or council in order to proceed – without approval, they are unlikely to qualify for the financing they need to fund the project. 

Civil

Civil construction focuses on the development and maintenance of essential public infrastructure. This category includes projects that facilitate the transportation of people, goods, resources, and information, such as:

  • Roads, bridges, and tunnels
  • Railways, including underground trains, metro systems, and tram lines
  • Airports
  • Water supply systems, including dams, pipelines, and aqueducts
  • Waste management systems, including drainage
  • Communication channels, including telecommunications infrastructure
  • Power channels, including electricity grids

These projects are often large-scale and complex, requiring specialised engineering expertise and heavy equipment. They are typically funded by government agencies or large private corporations, often in the interest of the public.

Civil infrastructure projects play a crucial role in economic growth and social cohesion. They require a high degree of planning, design, and construction expertise, and are subject to stringent regulations to ensure safety and functionality.

Industrial

Industrial construction involves the building, assembly, and renovation of structures used for industrial purposes. This includes projects such as:

  • Manufacturing plants
  • Warehouses
  • Power plants
  • Oil refineries
  • Solar power plants
  • Hydroelectric facilities

These projects are often funded by for-profit or industrial corporations. Industrial construction projects require specialised technical skills throughout the planning, design, and construction stages.

This type of construction often requires specialised construction companies and skilled tradesmen, with engineers playing a key role in the design and functionality of the structures. Different types of engineers, such as electrical, civil, and mechanical engineers, are involved in ensuring the safe and efficient operation of industrial facilities.

What is the National Construction Code?

In Australia, the National Construction Code (NCC) serves as the comprehensive guide for building codes, establishing minimum standards for safety, health, amenity, accessibility, and sustainability in the design and construction of buildings. The NCC is a vital tool for achieving a consistent level of building quality and safety across the country.

The NCC covers a wide range of aspects, including:

  • Fire safety

    The NCC includes provisions for fire resistance, fire detection and alarm systems, and evacuation procedures.

  • Structural integrity

    The code sets requirements for the strength and stability of building structures to withstand loads, wind forces, and seismic activity.

  • Accessibility

    The NCC mandates accessibility standards for people with disabilities, ensuring buildings are inclusive and accessible to all.

  • Energy efficiency

    The code promotes sustainable building practices by setting minimum energy efficiency requirements.

  • Plumbing and drainage

    The NCC establishes standards for plumbing and drainage systems to ensure safe and hygienic water management.

Adhering to the NCC is mandatory for all building projects in Australia, irrespective of their type or end use. Compliance with the NCC is crucial for obtaining building permits, ensuring the safety and well-being of occupants, and minimising risks associated with non-compliance.

What are the Key Differences Between Traditional and Modern Construction Methods?

Traditional construction methods often rely on manual labour and conventional building materials, such as bricks, concrete, and timber. Modern Methods of Construction (MMC), on the other hand, are characterised by the use of advanced technologies, prefabricated components, and sustainable materials.

Modern construction techniques aim to enhance efficiency, speed, and sustainability in the building process. Some key differences between traditional and modern construction methods include:

Technology

Modern construction methods embrace digital technologies, such as Building Information Modeling (BIM), which enables 3D visualisation, collaboration, and efficient project management.

Prefabrication

Modern construction often involves prefabricated components that are manufactured off-site and assembled on-site, reducing construction time and waste.

Sustainability

Modern construction methods prioritise sustainable practices, such as using recycled materials, minimising energy consumption, and reducing the environmental impact of construction activities.

Can a Building be a Mixed Type of Construction Method?

Mixed-use construction projects combine multiple types of construction and land use within a single development or area. These projects often integrate residential, commercial, institutional, and even industrial elements, creating vibrant and multifunctional spaces.

Mixed-use developments offer several benefits, including:

  • Increased density and efficient land use
  • Diverse housing options
  • Proximity to amenities and services
  • Reduced traffic congestion
  • Enhanced community engagement

However, mixed-use projects also pose challenges, such as:

  • Complex design and construction processes
  • Coordination of multiple stakeholders
  • Potential for conflicts between different uses

Careful planning, design, and construction management are essential to successfully deliver mixed-use projects that meet the needs of all stakeholders.

Why is Determining Construction Type Important?

Determining the construction type is crucial for several reasons:

Safety

Different construction types have varying levels of fire resistance and structural integrity. Understanding the construction type helps to determine the appropriate fire safety measures, such as fire-resistant materials, fire suppression systems, and emergency exits. It also influences the structural design to ensure the building's stability and resistance to natural disasters.

Compliance

Building codes and regulations vary depending on the construction type. Correctly identifying the construction type ensures compliance with local building codes, safety standards, and accessibility requirements.

Financial

The construction type influences the cost of materials, labour, and specialised equipment. Accurate determination of the construction type helps in developing realistic budgets, estimating project costs, and managing budgets effectively.

Risk Management

Understanding the risks associated with each construction type allows for proactive risk mitigation strategies. This includes identifying potential hazards, implementing safety protocols, and procuring appropriate insurance cover.

Technology in Construction Management

Managing the complexity of construction projects, regardless of the type, is made easier through technology. Construction management software provides real-time data visibility and integration with other applications, enabling efficient project planning, execution, and monitoring. These tools facilitate:

  • Collaboration among project stakeholders
  • Tracking of progress and performance
  • Management of budgets and schedules
  • Identification and mitigation of risks

Software plays a vital role in ensuring that construction projects, of any type, are delivered on time, within budget, and to the required quality standards. By leveraging technology, construction professionals can enhance productivity, reduce errors, and improve overall project outcomes.

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Written by

Grace Tame

Grace is a Senior Strategic Product Consultant at Procore. She helps construction companies improve their quality and safety management by using technology throughout project lifecycle. She is also passionate about the environment and encourages sustainable construction practices. Grace has over 10 years of experience in the construction industry, with roles in: - Bid management - Pre-construction - Construction, as a project engineer and in design management - Handover (including DLP) - Tenancy coordination - Sustainability She has worked on various types of construction projects including Residential, Education, Health, Commercial, Retail, and Public Works. Additionally, she has experience in managing ISO re-accreditation.

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