Cyber risks refer to threats that affect digital systems used in construction projects. These may include phishing attacks, ransomware, payment fraud, or unauthorised access to project data.
Cyber risks in the construction industry: protecting projects, data, and operations
Construction projects depend heavily on digital systems.
Design drawings are shared online. Contractors exchange invoices electronically. Project timelines and documentation are often stored in cloud platforms that multiple partners can access.
These systems help teams collaborate across different locations and organisations. At the same time, they introduce new risks that many construction businesses did not previously face.
Cyber incidents are no longer limited to technology companies. Builders, contractors, developers, and engineering firms can also experience cyber events that interrupt projects or expose sensitive information.
Understanding how cyber risk affects construction operations is becoming an important part of project planning.
What you should know about cybersecurity
Cyber incidents are becoming more common across Australia.
The Australian Cyber Security Centre1 reports that a cybercrime is reported every six minutes in Australia.
Construction businesses may not always see themselves as cyber targets. However, projects often involve large financial transactions, complex contractor networks, and valuable intellectual property such as design files.
These factors can make construction organisations attractive targets for cyber criminals.
As more construction activities rely on digital systems, cyber risk becomes part of the broader risk environment for project delivery.
Why cyber risk is growing in construction
The construction industry is using more digital tools across projects.
Modern projects rely on technologies such as building information modelling, cloud-based collaboration platforms, and connected building systems.
These tools support communication between contractors, consultants, and project owners. They also increase the number of digital entry points that attackers could attempt to exploit.
Construction projects also involve large supply chains. A construction project may involve many contractors, consultants and suppliers. Each organisation may connect to shared project platforms or exchange information digitally.
This interconnected environment means a cyber incident affecting one participant could affect others connected to the project.
Some construction projects are also linked to infrastructure systems. The Australian Government2 notes that critical infrastructure sectors rely on digital technologies and interconnected networks, which means cyber incidents can disrupt essential operations.
While not every construction project is classified as critical infrastructure, many developments support sectors such as transport, utilities, and public services.
Common cyber threats affecting builders and contractors
Cyber incidents affecting construction businesses can take several forms.
Phishing is a common cyber threat for businesses and can affect construction organisations. Cyber criminals send emails that appear legitimate and attempt to trick employees into sharing passwords or accessing malicious links.
Payment fraud can also occur. Attackers may intercept communications between project partners and change banking details on invoices. This can redirect payments intended for suppliers or contractors.
Ransomware is another significant risk. In these incidents, attackers block access to systems or files and demand payment to restore access.
Data theft may also occur. Project documentation, design information, and employee records can contain valuable data that attackers attempt to access.
These incidents can affect businesses across different parts of the construction supply chain.
How cyber incidents can disrupt projects and supply chains
Construction projects operate within tight timeframes.
If digital systems become unavailable, even temporarily, the effects can spread across the project.
For example, if a supplier experiences a cyber incident, it may affect their ability to deliver materials or communicate with project teams. This may lead to scheduling adjustments or additional costs.
If project data becomes inaccessible, teams may lose access to drawings, specifications or procurement information. This can slow coordination between contractors and consultants.
Because construction projects involve many interconnected organisations, disruptions can extend beyond the company that initially experienced the incident.
Financial and operational consequences of cyber incidents
The financial impact of cyber incidents can vary depending on the situation.
Costs may arise from investigating the incident, restoring systems, or recovering lost data. Businesses may also need to manage operational disruption if project systems are temporarily unavailable.
There may also be legal or regulatory considerations when sensitive information is involved.
Strong cyber governance can help organisations manage these risks. Government guidance3 emphasises that cybersecurity policies and risk management practices are important for protecting systems, information, and digital services used by organisations.
For construction companies managing multiple projects and contractors, these governance practices may form part of broader operational risk management.
Strengthening cyber risk management in construction
Cyber resilience usually involves a combination of technology controls, staff awareness, and operational processes.
Some practical steps construction organisations often consider include:
- strengthening access controls for project systems
- training employees to recognise suspicious emails
- reviewing cybersecurity practices for suppliers
- maintaining regular backups of project data
These actions may help reduce the likelihood of incidents and support faster recovery if one occurs.
Many organisations also develop incident response procedures. These plans outline how teams respond to cyber events and help reduce confusion during a disruption.
The role of cyber insurance in construction risk planning
Cyber insurance may form part of a broader risk management strategy.
Policies are designed to respond to certain costs that may arise following a cyber incident. Depending on the policy, this may include support for incident response, system restoration, or business interruption.
Insurance does not prevent cyber incidents from occurring. However, it may assist organisations with financial support and access to specialist services during recovery.
For construction companies managing complex projects and contractor networks, cyber insurance may be considered alongside other project risk protections.
Businesses seeking guidance may wish to speak with a risk advisor to understand how cyber exposures relate to their operations.
More information about construction risk considerations can also be found on the Marsh construction industry page.
Frequently asked questions
Construction projects involve financial transactions, shared digital platforms, and large contractor networks. These factors can create opportunities for cyber criminals.
If systems that store project information or schedules become unavailable, teams may lose access to critical data. This can slow decision making and coordination across the project.
Invoice fraud occurs when cyber criminals intercept communications and change payment details. Payments intended for suppliers may be redirected to fraudulent accounts.
Ransomware is malicious software that blocks access to systems or files until a payment is made. It can disrupt project management systems and digital records.
Yes. Businesses of different sizes can experience cyber incidents. Smaller organisations may rely on digital tools but have fewer dedicated cybersecurity resources.
Organisations often focus on staff awareness, secure system access, supplier security reviews, and data backups to reduce cyber risk.
Construction projects involve many suppliers and contractors. If one organisation experiences a cyber incident, it may affect other participants connected to the project.
Yes. Infrastructure projects often rely on digital systems and connected networks, which can be affected by cyber incidents.
The Australian Cyber Security Centre publishes advice and resources to help businesses understand cyber threats and strengthen cyber security practices.
Cyber insurance may help respond to certain costs following a cyber incident, including incident response and system recovery support.
The Australian Cyber Security Centre reports that a cybercrime is reported every six minutes in Australia.¹
References
[1] Australian Cyber Security Centre, “ACSC Annual Cyber Threat Report”, https://www.cyber.gov.au/about-us/view-all-content/reports-and-statistics/annual-cyber-threat-report-2024-2025, accessed on 29 March 2026.
[2] Australian Cyber Security Centre, “Critical infrastructure”, https://www.cyber.gov.au/business-government/critical-infrastructure, accessed on 29 March 2026.
[3] NSW Government Digital, “Cyber security policies”, https://www.digital.nsw.gov.au/delivery/cyber-security/policies, accessed on 29 March 2026.
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