In 2018, the New South Wales Government launched an Action Plan which included a 10 Point Commitment to the construction sector with the intent of government and the industry coming together to improve the capability and capacity of the sector.
Infrastructure NSW released a progress report in June 2020 which analysed the performance of government across a range of metrics linked to the 10 Commitments. To validate the progress, Australian Constructors Association commissioned BIS Oxford Economics to analyse the progress as viewed by major contractors working on projects in NSW. This was done by surveying members of the Australian Constructors Association.
The latest survey findings, released December 2021, reveal government is changing the way it is buying infrastructure to deliver better value for taxpayers and support a more sustainable construction industry. Our report, the Construction Industry Scorecard, shows government improved across 9 of the 10 commitments. The greatest improvements have been recorded against the government’s commitments to standardise contracts and procurement methods, and develop a transparent pipeline of projects.
Transparency of the pipeline is now exceeding expectations, with face-to-face interactive briefings with industry well received and also helping to elicit industry feedback on the market’s capacity to deliver the forward pipeline, along with options for packaging and phasing of individual projects. The model used by Major Road Projects Victoria which is based on delivering a package of projects across panel contractors is a great example of government collaborating with industry and providing good visibility of upcoming projects.
While commending the NSW and Victorian governments on their efforts, the pace of reform needs to be increased to deliver the largest infrastructure program Australia has ever seen. Further improvements are desperately needed to address the industry’s many challenges including high rates of insolvencies, low productivity growth, lack of diversity and poor mental health.
Recognising the need for industry to also play its part, in this latest report the Australian Constructors Association reflects on efforts in holding up its own 10 commitments published in late 2020. In line with our purpose of bringing stakeholders together, many of our activities this year have progressed through our strategic collaborations with the NSW and Victorian Governments in the Construction Industry Leadership Forum and Construction Industry Culture Taskforce.
Download the Construction Industry Scorecard 2021.
Download the inaugural report published in 2020 – Response to Infrastructure NSW scorecard.
