It is hoped that the streamlined procurement practices will attract more major infrastructure investment. Image: WA Government.
The Western Australia Government says it is modernising procurement practices in an effort to attract major investment in state infrastructure projects.
The new Bid Contribution Policy for Non-Residential Major Projects has been developed in consultation with the Master Builders Association (MBA) and top tier one and two contractors. Administered by the Department of Finance, the initiative is aimed at increasing market capacity and competition on critical projects including hospitals, correctional facilities and cultural buildings in WA.
The government says the changes are a result of direct feedback from the MBA and major builders operating in the state and elsewhere in Australia and are targeted at projects with construction works valued at over $100 million, and other builds that are considered high-risk or high complexity.
Proponents invited to the second stage of eligible procurement processes will be able to apply for a financial contribution up to $750,000 towards their bid costs, with the state to be provided with the use of the intellectual property associated with each bid.
The government says it recognises that high-quality bids on major projects require considerable investment from builders, and says the new policy acknowledges that investment and provides financial contributions to support the development of complex bids that provide valuable information and intellectual property for the state.
State Finance Minister Sue Ellery said the initiative was an important one and was developed in consultation with the MBA and top tier one and two builders on how to increase market capacity in Western Australia’s building and construction sector.
“It aims to incentivise contractors to invest their time and future in the state while also creating local jobs,” she said.
“We understand that high-quality bids on major projects require considerable investment from bidders. The intent of this policy is to partially offset expenses borne by proponents to ensure the bids are developed at a high level, further supporting industry and reducing risk to the state.”
MBA WA CEO Matthew Pollock said the initiative was a key priority of his organisation’s Regulatory Reform Package developed with government.
“Offsetting bid costs for large or complex projects will encourage more contractors to bid. Greater competition will mean better bids and better value for money for taxpayers,” he said.
“Giving access to $750,000 towards bid costs will ensure contractors can properly engage the right technical consultants to de-risk the tender process, and deliver more complete bids to government.
“There is a record pipeline of major projects to deliver in WA. This initiative is about industry and government working collaboratively to ensure we deliver the major project pipeline in the most effective way possible.”
