Wed 14 Dec 2016

Victoria Government Media Release – Building Infrastructure Quicker and Smarter:

The Andrews Labor Government is set to reduce the time and costs for industry as it delivers Victoria’s strong infrastructure pipeline.

Treasurer Tim Pallas today released a short paper, Reforming Public Construction, which identifies reforms to deliver projects quicker and more efficiently, boosting jobs and Victoria’s competitiveness.

The paper was developed in consultation with contractors and industry bodies, and identifies three broad areas for action:

  • Exploring ways to make procurement processes across government more consistent
  • Streamlining and simplifying tender requirements to reduce time and costs for industry
  • Harnessing procurement and project management skills within government

More specifically, CCF provided a number of valuable insights to the review by providing practical ways to streamline processes and reduce government procurement costs for both private sector and Government works. This included the need in addressing:

  • standardisation of terms & conditions in contracts between projects
  • lack of forward planning and scheduling of projects that leads to an inconsistent pipeline of projects
  • disparity of contractor pre-qualification between State, Local Governments and their agencies
  • impact delays in receiving formal Government approvals, or Ministerial sign off, for projects has on costs
  • push by Government to “de-risk” projects with contractors now having to assume greater levels of risk and liabilities for projects
  • complexities created through the EOI, or D&C tendering process with increasing incidents of either lack of detail, or over specification of requirements needed to make a determination in the awarding of contracts

It builds on the Labor Government’s work to date, including the establishment of Infrastructure Victoria and the Office of Projects Victoria – both of which are transforming the way projects are prioritised and delivered.

Victoria’s infrastructure pipeline is strong with the Government growing infrastructure investment from an average of $5.2 billion per year during the previous seven years, to around $7.4 billion per year from 2016-17.

Quotes attributable to Treasurer Tim Pallas

“Feedback from the industry is that we need to reduce red tape and allow industry to more effectively and efficiently work with government – cutting costs, saving money and delivering infrastructure quicker.”

“For the last two years, we’ve delivered on the things that matter most to people – building the infrastructure that Victorians need and deserve – and this reform ensures that infrastructure is delivered in the best possible way.”

Quotes attributable to John Kilgour, Chief Executive Officer Civil Contractors Federation

“The Civil Contractors Federation warmly welcomes the Victorian Government’s approach to improving current tendering and procurement practices.”

“This is a positive step for the industry which will help build infrastructure quicker; it is great for the Victorian economy and great for local jobs.”