Wed 23 Nov 2016

Victoria Government Media Release

Building Infrastructure Quicker and Smarter:

Thursday, 24 November, 2016

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

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 – as the Labor Government gets on with building the infrastructure that Victorians need and deserve.

The Government is growing infrastructure investment growing from an average of $5.2 billion per year during the previous seven years, to around $7.4 billion per year from 2016-17.

CEO of CCF Victoria John Kilgour stated “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.”

CLICK HERE to download a copy of the document.

CCF provided 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
  • Level of security, i.e. Bank Guarantees, sought by multiple governments and agencies and the costs associated with its provision, retention and administration for both the Government and contractors

Many of these issue appear to be captured in the document but however latter point into Bank Guarantees was not within the remit of the review.  It is an issue that CCF Victoria have been discussing in recent months with the Red Tape Commissioner, Dr Matthew Butlin, and we will continue to work with Commissioner to bring about tangible improvements in this area.

For more information about this, please contact CCF Victoria CEO John Kilgour on (03) 9822 0900.