Victoria drives forward with innovative approach to procurement

Liam Gill   |   July 19, 2020

Australia's approach to infrastructure projects for many years now has favoured works being awarded to a select few Tier-1 companies and consortiums of which have large workforces made up of both blue and white collar workers.

Roads Australia President, Michael Bushby recently stated “It is becoming increasingly clear that the recent national infrastructure boom in the number and size of transport projects has revealed major issues in the way traditional projects are delivered.

On Wednesday, 8 July 2020 Victoria's State Government implemented a new framework for its approach to procurement for an upcoming $2.2B pipeline of work. This framework is modelling that of the current Level Crossing Removal Project which will see 75 dangerous level crossings removed across the state by year 2025, to date 38 level crossing's have been removed.

“Industry acknowledges that the Victorian Level Crossing Removal Project has been a collaborative model that ensured governments got great value for the infrastructure spend, while ensuring contractors, consultants and suppliers of all sizes were able to undertake the work required,” Mr Bushby said.

This innovative procurement approach aims to support Tier 2, 3 and 4 companies access this work, creating more jobs and capacity in the construction sector. Twelve projects in Melbourne’s North and South East, worth $2.2B will be awarded to pre-qualified companies under this new approach (see projects listed below). Construction companies will be pre-qualified following an upcoming tender process for work according to the scale and complexity of jobs, with work awarded based on past performance and value-for-money.

“This revised approach should provide wider opportunities for all contractors and suppliers," Mr Bushby said.

With Victoria being dubbed as 'Australia's epicentre' of COVID-19 and tighter restrictions likely to soon occur with the rising number of active coronavirus cases in the state the Victorian and Australian Governments are fast-tracking infrastructure projects to boost state economies and lower unemployment. In tough and uncertain times, out of the box thinking is needed to make positive change and help quickly rebuild the Australian economy. From this changed procurement approach it is evident that Victoria is leading the way and driving a positive change for the future of infrastructure in Australia.

Upgrades in the Melbourne's North

Bridge Inn Road, Childs Road, Craigieburn Road, Epping Road, Fitzsimons Lane, Sunbury Road

Upgrades in the Melbourne's South-East

Healesville-Koo Wee Rup Road, Lathams Road, Hallam North Road, Narre Warren-Cranbourne Road, Pound Road West, Golf Links Road

---

Originally published on my LinkedIn

Liam Gill
Liam is an Enterprise Account Executive at Felix working closely with construction, utility and mining companies. Liam is always eager to promote how technology can help leverage relationships, drive collaboration and inform decision making.
Follow me:

Related Articles

Sustainable Procurement
How social procurement is much more than corporate social responsibility

Are you leveraging social enterprises in your tenders? Because your competitors are. There's a growing expectation for contractors to include social enterprises when bidding and delivering commercial and major government projects, yet navigating social procurement remains an afterthought for many.  

Sustainable Procurement
The Circular Economy: leading sustainability through procurement

With the many significant events happening around the world right now, it's easier to focus on short-term outcomes to keep the business ticking than to consider longer-term goals. Areas of your business like sustainability may suffer, when in fact, they are the most important ones to focus on right now to ensure future longevity for all.

Value creation
Construction ‘Procurement’ Deconstructed

In 2018 I had the opportunity to produce the report Creating Value through Procurement, a piece of research that focused on the New Zealand public sector’s procurement of major infrastructure projects.

Like our content?

Be the first to know when we publish new insights.