By Darian Macey, July 22 2025
By Darian Macey
A Record Tranche in July 2025
July 2025 has seen a substantial increase in activity within Defence’s Estate Works Program (EWP), with an estimated $300–$350 million worth of medium works projects moving into the planning phase. This marks the largest batch of new projects since November 2023, when approximately $500 million was initiated, and one of the most significant monthly tranches since the COVID-stimulus peak of 2021.
So far, no public information has been released detailing specific project locations or scopes, prompting considerable interest across the Defence estate sector. Industry stakeholders are keen to understand which bases or facilities will benefit from this latest investment.
While details remain under wraps, the overall contract value can typically be inferred from the $37.2m in consulting fees awarded to Project Delivery Services (PDS) contractors last week, which generally account for around 8–12% of the total project cost. Given the typical 12–18 month lag between project initiation and tender release, it’s likely that these works will not reach the open market until late 2026.
From Stimulus Peaks to Strategic Pauses
Monthly value of Estate Works Program contracts awarded Project Delivery Services contractors (Aurecon and JLL), 2020–2025. The chart shows a stimulus-driven spike in 2020–21, followed by a dip in 2022–23 and a rebound in July 2025. Consulting fees
This current burst of activity comes after a period of highs and lows for the Estate Works Program. Back in 2020–2021, the Australian Government injected a massive stimulus into Defence infrastructure as part of its COVID-19 recovery plan – including a “$300 million national estate works program” targeting regional bases. That stimulus drove EWP project releases to unprecedented levels; for example, in late 2021 monthly fees to PDS contractors peaked at over $60–70 million as Defence fast-tracked dozens of minor projects nationwide. By contrast, 2022 and most of 2023 were relatively quiet. Following a change of federal government in 2022 and the initiation of the Defence Strategic Review (DSR), new project releases slowed to a trickle as Defence re-assessed priorities. In fact, the number of Defence tenders overall was roughly halved in late 2022 and 2023 compared to prior years. This translated into a 14-month lull in EWP activity – essentially no large multi-million-dollar tranches were released between September 2022 and November 2023.
The logjam finally broke in November 2023 when a bumper $54 million package of works was announced, effectively ending the drought. That November 2023 tranche – the largest in years – came after the DSR’s release (April 2023) and likely reflected urgent works deferred during the strategic review. It proved to be a turning point. Since then, the program has gradually regained momentum, with the July 2025 tranche of $37.2 million in consulting fees confirming that EWP activity is now roaring back. For context, even throughout 2024, monthly releases generally stayed well below $25 million; so hitting $37+ million in one go this year is a notable resurgence. It harks back to the program’s heydays under stimulus and indicates Defence is keen to catch up on estate upgrades.
Transition on the Horizon
The timing of this large release is also noteworthy because it precedes a major transition in how projects will be delivered. The current model – using two national Project Delivery Service (PDS) providers to manage EWP works – is nearing its end. A six-month transition period will commence in August 2025 as the existing PDS contracts wind down. (Aurecon and JLL have been the primary PDS contractors since 2014, responsible for scoping and delivering EWP projects across Australia.) The Department of Defence has extended its broader Base Services support contracts through to 31 January 2026 to cover this handover period. During these six months, industry and Defence will prepare to roll out a new contract model under the Base Services Transformation Program, slated to begin in February 2026. The Base Services Transformation is a comprehensive redesign of Defence’s base services contracts – essentially the way facilities maintenance, support, and minor capital works are procured. It has been in the works since 2022 and will introduce a new era of service delivery from 2026 onward.
What does this mean for the Estate Works Program? In all likelihood, the traditional PDS approach (with dedicated firms managing projects) will remain as we know it, albeit with a new face or two on the panel. For now, Defence has ensured continuity by bridging the gap – Aurecon and JLL both received a 7-month extension of their PDS contracts to cover up to Jan 2026. The February 2026 rollout of the transformed model is eagerly anticipated by industry. Many in the sector expect that the recent surge in project releases is, in part, a last push under the old contract – an effort to award and kick off as many projects as possible before the PDS contracts expire. If true, this would allow the outgoing PDS teams to carry these projects through the transition, ensuring critical works aren’t delayed by the organisational change. Either way, the estate sector can expect a period of adjustment as responsibilities shift and the new contractors step in next year.
Key Players and Their Delivery Approaches
The Estate Works Program has been delivered for over a decade by two key industry partners: Aurecon and JLL. Both companies operate as PDS contractors, effectively acting as Defence’s delivery arms for planning and executing hundreds of minor projects nationwide. However, they bring distinct approaches to project delivery, shaped by their different corporate strengths. Aurecon is a global engineering and design consultancy – it tends to handle both the design and project management of works in-house. For an EWP project managed by Aurecon, the same firm often produces the engineering drawings, manages the construction tender, and oversees the works, providing a one-stop shop. This can streamline communication and retain technical knowledge within one team. JLL, on the other hand, is a real estate and infrastructure services company without large engineering design teams internally. Under the brand “Augility” (the name JLL uses for its Defence contract work), JLL’s role is more focused on program and project management. JLL typically subcontracts the detailed engineering and design work to external consultants, bringing in architects or specialist engineers from outside to produce the plans for each project. JLL’s strength lies in its coordination and facilities management expertise – they excel at juggling stakeholders and contractors across dozens of bases, ensuring projects meet Defence requirements. The difference in approach means that, in practice, Aurecon can deliver a project end-to-end with its own people, whereas JLL acts as an integrator, assembling and managing teams of subcontractors for each task. Both models have successfully delivered outcomes for Defence, and both companies are deeply embedded in the Defence estate community. (Notably, Ventia – primarily known for base maintenance – has also contributed to project delivery for EWP in some regions, especially during the stimulus period, but Aurecon and JLL have been the marquee players.)
As the current PDS contracts conclude, Aurecon and JLL’s long-running tenure on the EWP is coming to a close. They have collectively supported works on over 70 Defence sites, from major bases to remote training areas. Industry observers will be watching to see how these firms pivot post-2025 and how their capabilities might be folded into or compete with the new Base Services arrangements. The legacy they leave includes not just bricks-and-mortar upgrades, but also strengthened supplier networks and delivery practices that have matured over years of continuous project rollout.
Empowering Indigenous Contractors through EWP
One of the often under-appreciated successes of the Estate Works Program has been its role in building the capability of Indigenous-owned contractors. Defence and its PDS partners have leveraged Exemption 16 procurement provisions to great effect – this exemption in the procurement rules allows Defence to directly engage Indigenous businesses for certain works, bypassing open tenders in order to foster Indigenous enterprise. In practice, many Estate Works projects (especially those under certain budget thresholds) have been delivered by Indigenous-owned construction companies, either as head contractors or key subcontractors. Over the years, Aurecon and JLL substantially increased the share of work subcontracted to Indigenous firms. JLL in particular has been a leader in this space: in the 2020/21 financial year, 39% of JLL’s entire EWP project spend went to Indigenous construction companies, up from just 15% three years prior. This far exceeded Defence’s own targets, and the broader Defence organisation’s performance reflected these efforts – in 2020/21 Defence awarded 6,476 contracts to Indigenous businesses, massively overshooting the target of 676 contracts. Such outcomes have made the EWP a case study in successful Indigenous procurement.
The impact on the ground has been tangible. Several Indigenous enterprises have grown from small local outfits into robust, medium-sized contractors on the back of EWP projects. For example, TVN On-Country, a majority Indigenous-owned construction company, is highlighted as an EWP success story. Through winning a series of Defence estate works (starting from a generator installation at RAAF East Sale), TVN expanded from just 3 staff in a small regional office to a workforce of 41 with operations across multiple states. Their largest Defence contracts to date, valued at a combined $64m, were awarded by Capital Facilities and Infrastructure Group (CFI) this month – a testament to how far Indigenous suppliers have come. Stories like this underscore the program’s broader legacy: beyond the immediate objectives of fixing buildings and upgrading infrastructure, EWP has helped up-skill Indigenous businesses and employees, driving socio-economic benefits in those communities. The use of Exemption 16 has been instrumental in this, enabling Defence to directly invest in Indigenous capability building while still getting quality outcomes on base. Defence and industry leaders often speak with pride about these achievements. “We are immensely proud of the way we continue to pursue positive, sustainable growth for Indigenous businesses,” says JLL’s Defence lead Geoff Camp, noting how satisfying it is to see Indigenous partners mature and win work in open competition as a result of the mentoring and experience gained.
Outlook
Overall, July 2025’s record project release is a positive signal for those working in and around the Defence estate. It suggests a late surge of activity under the current delivery framework, injecting much-needed work into the industry and addressing pressing facility needs after a period of slower progress. Historically, the Estate Works Program has ebbed and flowed with government policy – from stimulus booms to strategic slowdowns – and we are now evidently in an upswing. The next 6–12 months will be a pivotal time: the existing PDS providers will be closing out projects and handing over knowledge, while new players from the Base Services Transformation prepare to step in. For professionals in the sector, there is a mix of excitement and uncertainty. On one hand, the pipeline of minor works is robust at the moment, and on the other, the methods of delivering that pipeline will soon change.
What is clear is that the Defence estate will remain a focus for investment. The backlog of compliance fixes and upgrades across bases ensures that programs like EWP continue to be vital. And if the recent tranche is any indication, Defence is committed to maintaining momentum through the transition. The successes achieved – including enhanced industry capacity and a thriving cohort of Indigenous contractors – provide a strong foundation to build upon. As the new contract model rolls out in 2026, the hope is that it will carry forward the best aspects of the current program: agility in addressing estate needs, opportunities for a wide range of businesses, and the ability to deliver results at pace when required. The Defence estate sector, seasoned by the past few years of highs and lows, will be ready to adapt and continue delivering the facilities that enable Australia’s defence capability.
Sources: The figures and historical information in this article are drawn from Defence releases and industry analysis, including official Defence announcements, Australian Defence Magazine data on tendering trends, and insights from Defence’s industry partners such as JLL and Ventia. These sources highlight the context and significance of the Estate Works Program’s recent activity within the broader Defence infrastructure landscape.
Author: Darian Macey
Darian is a former Engineering Officer with the RAE with tertiary qualifications in Engineering and Project Management. He is a leading practitioner within Australia's NSI sector with previous employment in Government, project management and building contractor organisations.
