The Australian Constructors Association (ACA) welcomes today’s publication of the findings of the Independent Strategic Review of the Infrastructure Investment Program, but a cloud of uncertainty still hangs over the industry.
Australian Constructors Association CEO Jon Davies said the review has provided some answers, but there’s still much more to figure out.
“The critical question remains: How will state governments respond to the withdrawal of funding on some projects and the new equal funding split going forward? There is also a big question concerning when the Melbourne Airport Rail Link will proceed,” said Mr Davies.
“The uncertainty has to end. It’s time to redirect focus from the rearview mirror where we question past decisions and instead concentrate on improving industry productivity to deliver these projects more cost-effectively and without the need for additional resources.”
In a positive step forward, a review of the funding mechanism for transport infrastructure between the federal government and the states, the National Partnership Agreement (NPA), was also released today, setting clear signals to drive better value to taxpayers.
“It is encouraging to see the Federal Government plans to use its buying power to drive improved outcomes on all projects,” said Mr Davies.
“Moving away from focusing on lowest price at tender and transferring as much risk to the contractor to achieving best overall value will have significant positive flow on effects to both industry and taxpayers.
“If there is to be an upside to the reviews, it must be that Australia finally has a more transparent and stable pipeline of projects, but we must also improve how these projects are delivered.
“We’re calling on the Federal Government to work with the states, industry and unions to create a 10-year National Construction Strategy to improve the productivity and financial sustainability of the industry that is critical for Australia’s future prosperity”.