The Department of Premier and Cabinet (DPC) has released a memorandum setting out expectations for the procurement for large, complex infrastructure projects.
In M2021-10 Procurement for Large, Complex Infrastructure Projects, DPC said clarifying expectations would enable sustainable delivery of the infrastructure pipeline as set out in Infrastructure NSW’s (INSW) Framework for Establishing Effective Project Procurement.
The Department said the State was currently delivering a record infrastructure pipeline with projects at a scale which was previously unseen.
“Complexity of delivery is compounded by several key features – working in developed and congested locations with latent inground conditions (contamination and existing utilities), heritage considerations and impacts on multiple communities and stakeholders,” DPC said.
“In addition, multiple contracts present interface and sequencing risks and also the need to continue to provide existing services in a disrupted environment,” it said.
“A stable and sustainable infrastructure sector is in the public interest as, when projects experience stress, it can undermine public confidence.”
DPC said that in 2018, the multi-Agency 10 Point Commitment to the Construction Industry was released and its M2021-10 Memorandum took that commitment further by setting out procurement practices that were expected to be routinely applied on large, complex infrastructure projects in the INSW Framework.
“The purpose of these practices is to increase participation, competition and efficiency in NSW infrastructure delivery, providing value for money for NSW citizens,” the Department said.
“Those practices are the default approach to large complex infrastructure projects procurement.”
It said there may be occasions where specific practices weren’t suited to the circumstances of a project, but those should be the exception.
DPC said to get the balance right, the Memorandum prescribed an ‘if not, why not’ approach.
“Where required practices are not applied on a large, complex infrastructure project, reasons must be set out, approved at senior levels of delivery agencies and reported to Government through the Infrastructure Investment Assurance Framework,” the Department said.
DPC’s M2021-10 Memorandum can be viewed online at this PS News link.
