Public hearings to probe procurement

Key industry players, peak bodies and stakeholder groups will join public hearings on October 5 and 14 for an inquiry aimed at improving the procurement process for government infrastructure projects. The House of Representatives Standing Committee on Infrastructure, Transport and Cities will examine the challenges and opportunities for the construction industry that comes with the Australian Government’s $110 billion commitment to the major infrastructure projects pipeline over the next decade. "While the major infrastructure projects in the pipeline will play an important part in Australia’s economic recovery, the committee recognises that it will also place considerable demands on the construction industry and may exacerbate challenges the industry is already facing, including productivity and skill shortages," committee chair John Alexander said. "The key focus of this inquiry is how to improve procurement practices for government-funded infrastructure. "Through strategic, effective and efficient procurement practices, governments can: help ensure the delivery of quality projects and value for money; drive important industry changes; and maximise opportunities for Australian businesses." The public hearings will include panel discussion sessions on key themes. On October 5 selected groups will focus on issues in the construction sector, including driving cultural change. At the October 14 panel session, the committee will explore technology and digital delivery themes with industry groups. "The committee looks forwards to hearing from these construction and engineering companies, industry peak bodies and stakeholder groups on what is working well in project procurement and delivery, and how the Australian Government can help drive necessary change and grow Australia’s sovereign industry capability," Mr Alexander said. Major contractors and peak groups have already lodged written submissions to the inquiry. The Civil Contractors Federation's recommendations include that procurement agencies be required to simplify their procurement processes where possible and work more closely with civil construction companies via collaborative contract arrangements. It called for procurement agencies to be required to provide annual performance reports detailing project delivery time to market on all federally funded infrastructure projects as a condition of federal funding. The CCF recommends that the Federal Government include the following conditions in the National Partnership Agreement with states/territories for all federally funded infrastructure projects: To disaggregate (or debundle) large projects where possible to foster broader competition and a more sustainable contracting industry at both head contractor and subcontractor levels.To include local content participation levels as a tender requirement at employment and product source level.To adopt contracting models that encourage greater participation from tier 2 and 3 head contractors enabling them to secure more work and providing the opportunity to mature commercially.Further, that the federal government conduct annual audits of procurement agencies on all federally funded infrastructure projects to measure the level of debundling and local participation rates. It has called for the Federal Government to reinstate civil occupations on the National Skills Needs List as a matter of urgency. The Queensland Major Contractors Association (QMCA) has called for more consistency in procurement approaches across jurisdictions nationwide. It said a patchwork of different approaches across Queensland and nationally added to the cost of tendering and presented a barrier of entry to companies wishing to grow and develop nationally. The QMCA also argues that the State Government's Best Practice Industry Conditions (BPIC) concept is not appropriate and should be abandoned.

Public hearings to probe procurement

Industry Queensland

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