CPB Contractors appointed to deliver Townsville Correctional Centre capacity uplift

The Queensland Government has appointed CPB Contractors as Managing Contractor for the Townsville Correction Centre Capacity Uplift Project, a major build that will add 200 cells and 400 beds to the correctional centre in Townsville, along with significant security upgrades.

CPB Contractors, part of the CIMIC Group, announced the appointment on 25 August 2026. The company says the project will deliver approximately $730 million in revenue to CPB. The work will be delivered in partnership with Queensland Corrective Services (QCS) and the Department of Housing and Public Works (DHPW).

Project at a glance

What is being built

The project's core is new accommodation: 200 additional cells providing 400 new beds, or two beds per cell. Alongside the new cells, the scope includes what CPB describes as significant security enhancements across the centre.

The build will happen inside a working correctional centre, which shapes how it is planned. CIMIC Group Chief Executive Officer Jason Spears said CPB's "security-led, safety-first approach" in live correctional environments shapes the project's staging strategy and construction methodology. CPB Contractors Managing Director Craig Nuttall said the company was committed to delivering the works safely and with minimal disruption to ongoing operations.

How the Managing Contractor model works

The Managing Contractor model is one of the Queensland Government's standard contract forms for building projects where early contractor involvement is required. It runs in two stages: in stage one, the contractor leads design development with the client and negotiates a guaranteed construction sum offer for the construction work; if that offer is accepted, stage two follows, with the contractor managing construction of the project.

For a complex job like this one, the approach lets the builder shape the design, staging and security planning from the outset, rather than pricing a fully finished design.

Part of a statewide capacity program

The Townsville project is one part of a wider correctional infrastructure program funded in the Queensland Budget. The 2026-27 Service Delivery Statements for Queensland Corrective Services list $174 million in 2026-27, out of a total $2.387 billion, to increase capacity through 400 additional cells providing 800 beds across Arthur Gorrie and Townsville correctional centres, plus 600 additional beds across the system.

In budget estimates material tabled in 2026, the government confirmed the split: 400 beds at Townsville Correctional Centre, 400 beds at Arthur Gorrie Correctional Centre and a further 600 beds across Queensland. The budget papers describe the investment as meeting projected demand and supporting a safer environment for correctional staff, prisoners and the community.

Experience in Queensland correctional builds

CPB brings Queensland correctional experience to the job. The company has previously delivered the Lotus Glen Correctional Centre Redevelopment and the Capricornia Correctional Centre for the Queensland Government.

Opportunities for North Queensland

A build of this scale means sustained work for the region's trades, subcontractors and suppliers. CPB has said it looks forward to continuing its established relationships in Townsville and across North Queensland, and to delivering community benefits through training, employment and procurement opportunities during the project. No local jobs figure has been published yet.

What's next

With the Managing Contractor in place, the model's first stage covers design development and the guaranteed construction sum offer, with construction managed by CPB once that offer is accepted. No construction start or completion dates have been published. North Queensland businesses interested in the work should watch for CPB's subcontract and supply opportunities as the project moves towards construction.

The CPB Contractors announcement has further detail on the appointment.

Published 5 October 2026 · Updated 2 October 2026