Industry sources were confident construction workers on the paused projects could be redeployed,but said it was inevitable there would be job losses given the significant rise in the number of tradespeople to meet the recent booming demand for labour on state transport infrastructure projects.

One industry source,who spoke on the condition of anonymity because they were not authorised to speak publicly,said some in the sector were viewing the pause as a “good correction” because the industry had been struggling to keep up with demand.

Melbourne Airport Rail director Ben Ryan wrote to all contractors on the Airport Rail Link on Wednesday,advising them it was “imperative” they manage their expenditure within the approved cap.

“We appreciate that this may involve a level of workforce demobilisation,” Ryan said in a letter to contractors

“Any expenditure beyond the agreed cap will not be reimbursed.”

John Hearsch,from transport advocacy and research group Rail Futures Institute,said he did not believe slamming the brakes on the airport rail was the “end of the world” as long as the government remained committed to delivering the project in the near future.

“Pausing it does give an opportunity to have another review about the scope and the way it links to the rest of the network,” Hearsch said. “But the other concern is the huge amount of money going into the Suburban Rail Loop for reasons I don’t understand apart from it being the premier’s pet project.”

The Suburban Rail Loop has been shielded from the review because it was an election promise. Prime Minister Anthony Albanese pledged $2.2 billion for the rail line during last year’s election campaign.

Construction,Forestry,Mining and Energy Union Victorian secretary John Setka said the workforce needed confidence in the infrastructure pipeline.

“Rather than building everything at once,what’s important to the workforce is certainty and consistency,” Setka said. “The massive and sudden increase in major transport infrastructure projects have seen an influx of companies not equipped to build at this level.”

Former department secretary Mike Mrdak,Infrastructure Australia acting board member Clare Gardiner-Barnes and senior West Australian transport bureaucrat Reece Waldock will conduct the review.

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