News & Insights

PROCUREMENT POLICY AND PRACTICES TO BE REVIEWED

27 September 2018 – Policy surrounding procurement practices within the infrastructure construction market is set to come under review following the Federal Government’s decision to commission a report that it hopes will lead to better value for taxpayers and foster the development of expertise and experience in the construction sector.

With a $75 billion pipelines of infrastructure projects set out over the coming decade Deputy Prime Minister Michael McCormack said it is important taxpayers get maximum bang for their buck.

“As an informed investor, the Australian Government is committed to ensuring we deliver value for money for the Australian taxpayer,” Mr McCormack said.

“Around the country our investment is focused on improving safety and driving economic growth, creating around 50,000 additional direct and indirect jobs, and we want to maximise that benefit. As our infrastructure program grows, it becomes even more imperative to ensure there is nothing in the current Commonwealth and state payment arrangements hampering a competitive market.

“The community should have confidence the size of the Government’s infrastructure investment provides opportunities across the construction supply chain. We know the benefits that can come from fair and reasonable opportunity for Australian businesses to compete for work.”

In a statement the Government said that in an effort to ensure transparency and collaboration it will liaise with industry to “help understand experiences in major procurements and identify the best ways to support local construction contractors to engage on infrastructure projects being funded by the Commonwealth.”

Assistant Minister to the Deputy Prime Minister Andrew Broad said, “It is important that we show the leadership and work with state and territory governments to refine the settings for major infrastructure projects to support local content and grow the experience and capability of the Australian construction industry.”

The Government expects to take the report to the COAG Transport and Infrastructure Council later in 2018 with a series of workshops with industry to be held over the next month.