Procurement Reform

Collaboration is vital to achieve much-needed industry reforms required to deliver on Australia’s upcoming record pipeline of infrastructure projects.

The Construction Industry Leadership Forum Procurement Reform Workstream seeks to influence best practice around collaboration, risk allocation and procurement strategies in the development, procurement and delivery of, infrastructure projects.

Collaborative procurement and delivery models enable innovation, improved productivity, increased capability and capacity, achievement of project outcomes and value for money. Streamlining contractual risk allocation and principles to assist in determining ideal packaging and procurement strategies are also essential to the efficient delivery of the pipeline of projects.

Outputs

Collaboration principles: The Construction Industry Leadership Forum is developing a practice note on collaboration to assist government and industry to work together in a more collaborative manner in delivering infrastructure projects. The forum is also working on collaborative principles that can be applied regardless of contract form to assist the parties in achieving best-for-practice outcomes.

Procurement models and packaging strategies guidance: The Construction Industry Leadership Forum is considering the usefulness of a procurement tool to assist in the selection of appropriate procurement and packaging strategies on a best-project basis. The forum will also prepare procurement guidance with a focus on consistency in definitions around models for the forum’s members.

Harmonisation: To reduce the time and cost of tendering, the Construction Industry Leadership Forum exploring ways to harmonise common commercial terms, such as site conditions, pandemic risks and interfacing with utilities. Understanding how these key risk areas are dealt with across various forms of contracts, including internationally, is a key focus of this work. The aim is to develop standard principles that can be incorporated into various models.