Ending the March/April chaos
The mania of roadworks and construction projects that bedevil every Spring is partly caused by the desire of local governments to spend their financial budgets rather than have them expire as the financial year ends in early April.
Allowing local governments to roll over road and construction budgets into the next financial year, rather than forcing them to spend everything before the deadline, can lead to more efficient, cost-effective, and higher-quality infrastructure projects.
When there's a "use it or lose it" rule, governments may rush to spend funds, sometimes prioritizing speed over quality or planning. Rollovers would bring better project design and engineering, to improve the final outcome and longevity of infrastructure.
Rushed end-of-year spending can lead to inflated contractor costs, sub-par work, or investments in unnecessary projects just to use up funds. With rollovers, governments can negotiate better contracts, wait for off-peak construction seasons, and avoid the “last-minute scramble” that drives up costs.
Road and construction work is often impacted by weather conditions, supply chain issues and environmental approvals. Rollover budgets allow for flexibility because delays don’t mean funding is lost, and projects can proceed on realistic timelines.
Rollovers encourage long-term thinking because local governments can invest in multi-year planning, build up funds for larger-scale projects, and bundle smaller projects for economies of scale. This supports sustainable infrastructure development, rather than short-term patchwork fixes.
Year-end budget panic often leads to a surge in procurement, reporting, and paperwork, but budget rollovers reduce this pressure, leading to a more stable workload for staff and less bureaucratic inefficiency.
Construction seasons don't follow financial years. For example, major works often pause during winter. Rolling over budgets, by contrast, lets projects align with optimal seasonal windows, improving productivity and reducing wear and tear on equipment.
The March/April chaos could be addressed by allowing councils to roll over unspent budgets for a least the following year, and possibly for three years. This would spread out the work instead of having it done in haste to beat the deadline. It could be tested on a regional basis by permitting it in selected areas to check that it does indeed produce long-term thinking and improved efficiency.
The odds are very high that it will.
Madsen Pirie