The Australian Constructors Association (ACA) has welcomed the release of the NSW Government's Principles for Partnership with the construction sector but has cautioned that long-standing challenges persist and must not be ignored.
ACA CEO Jon Davies said that while the principles acknowledge the need to improve industry capability, capacity and financial sustainability, several of the government's key commitments to industry (published in 2018) have been watered down or removed.
"Notable omissions include a focus on collaborative contracting and the reimbursement of bid costs—both critical for a stronger, more innovative and sustainable industry," said Mr Davies.
"The government has argued that these changes reflect improvements in industry performance, suggesting that ongoing attention to these areas is no longer necessary. However, a recent ACA survey of members paints a different picture, showing reduced compliance with most of the previous commitments and an accelerating trend of non-compliance by government delivery agencies.
"The new principles are a positive step in theory, but they will not deliver the intended outcomes without a financially sustainable industry.
"There is still a long way to go in procuring and managing projects collaboratively, adopting partnership-based approaches to risk allocation, standardising contracts and reducing the cost of bidding.
"Construction continues to lead all industries in insolvencies. Addressing risk allocation and improving industry liquidity is essential to reversing this trend. "ACA warns that recent progress in improving industry culture is at risk if non-compliance with commitments, including original commitments, continues to grow.
"Contractors are leaning in to drive culture change, further innovation and embrace DFMA principles," said Mr Davies. "These efforts require significant investment in skills, systems and processes, but this comes at a cost.
"Clients, including government delivery agencies, must also lean in and provide the necessary support to ensure contractors can afford to maintain and build on this momentum."
"Now is the time to double down on reform, not go backwards.
"A true partnership approach requires all parties to walk the talk on reform and not retreat when the going gets tough."
About us:
The Australian Constructors Association is the only representative body for contractors delivering vertical and horizontal construction projects, as well as undertaking infrastructure asset management. Our members construct and service the majority of major infrastructure projects built in Australia every year. Our goal is to create a more sustainable construction industry.
