Queensland's biggest developers will tell new State Development Minister Anthony Lynham on Tuesday morning that there will be one third of the major engineering projects in 2015-16 that there were in 2012-13.
That means workers will head interstate, the Queensland Major Contractors Association warns.
The QCMA will release its major 2015 report, which highlights major project work will fall to a value of $6.3 billion in 2015-16, compared to $18 billion in 2012-13.
The report shows there were already 5400 fewer jobs on engineering projects in the state by July 2014 due to several major projects finishing.
Those included Brisbane's Clem 7 tunnel, the Airport Link tunnel and the Bruce Highway's Caboolture stretch upgrades. Brisbane's Legacy Way tunnel is now winding down.
The QCMA – which represents firms involved in projects valued at more than $100 million – says its research shows the value of work will fall a further 55 per cent over the next two years.
During the 2015 Queensland election campaign, the QCMA highlighted a major problem with a lack of infrastructure projects forcing larger engineering companies to look for work in other states.
Queensland Major Contractors Association executive committee member Iain Ward, said the organisation's 2015 Queensland Major Projects Report had identified the extent of the major slow down.
Mr Ward said the difficulty for Queensland was future projects were - as yet - unfunded and there was increasing competition from infrastructure projects interstate and overseas.
"While the industry is in a sharp contraction phase now, further investment cycles will continue to play out in the future. The Major Projects market will likely become more volatile and cyclical from here, not less," he said.
"The challenge for all participants is to make it more productive, sustainable and predictable so that industry can plan effectively for the challenges ahead."
Mr Ward said planning must identify a pipeline of future infrastructure projects.
The new Queensland government said high priority projects would be identified by Labor's new Building Queensland body 12 months from now.
However Mr Ward said major project work was beginning to fade in Queensland and planning was essential to prevent further job losses.
"Governments and industry need to work together to tackle productivity and competitiveness pressures facing major project development in Queensland," Mr Ward said.
"This includes sensible plans and processes that ensure public infrastructure is delivered in a timely and efficient manner to meet the needs of a growing state."
Mr Ward said he would use Tuesday morning's Major Projects conference at the Brisbane Convention and Exhibition Centre to argue infrastructure investment must be maintained.
"Appropriate investment should be made now to ensure that skills and competencies are developed and retained in the construction industry to meet the demands of future investment cycles," he said.
