CCF SA says State Government bundling projects into larger and larger contracts is bad news for SA and would amount to a broken election promise
Responding to Member complaints in respect to DPTI’s proposed recommendation to the SA Government that the planned Joy Baluch Bridge upgrade ($160m) and duplication of the Pt Wakefield Road (through Pt Wakefield) and the associated construction of an overpass at the intersection of the Copper Coast and Augusta Highways ($90m) be combined/aggregated/bundled into one large contract with preference for an alliance delivery model, the CCF SA has made robust representations to the CEO of DPTI and the Minister for Transport and Infrastructure making it clear this recommendation does not carry the support of the CCF SA. The CCF SA has made it very clear that if the recommended course is adopted the Government will face serious and sustained resistance from the CCF SA. All lawful means to resist such a move will be deployed by the CCF SA. The delivery model proposed flies in the face of stated Liberal Party policy prior to the election. The Ministers also gave a personal commitment to the CCF SA that the previous government’s policy of bundling of projects would not only stop but that there would be a move to a process of disaggregation of government projects. In the SA social and economic context the bundling of capital projects and other works into larger and larger contracts makes these attractive to larger and larger companies, including those with an international footprint. In this environment small to medium size South Australian firms, which dominate the South Australian market, simply cannot compete or gain the experience to grow and prosper. These companies are destined, at best, to always be the sub-contractor. There are local civil construction firms with the capacity, singularly or with others, ready, willing and available to execute the proposed works, primarily that proposed at Pt Wakefield. Bundling may be expedient for DPTI but does not maximise the proven jobs growth and economic stimulus potential possible through public investment in infrastructure. Similarly, bundling does nothing to grow capacity in the South Australian Civil Construction Sector. It is very disappointing and alarming that the Government’s primary construction delivery agency (DPTI) does not appear to fully understand that much more can be achieved for South Australia by a disaggregated approach to project execution. The CCF SA welcomed the SA Government development of an industry policy to drive the new economy and create opportunities for businesses to start, and existing businesses to grow in an evolving and increasingly competitive global marketplace. Bundling is entirely inconsistent with this and does not comply with the Government’s Industry Participation Policy and Guidelines that have as objectives, increasing the number and diversity of locally based businesses winning work, driving local investment and creating strong value chains from the State’s portfolio of major projects. We note that an EOI in respect to the bridge alone has been released to the market. We trust that this is a signal that common sense is prevailing and the retrograde plan to combine these two projects has been abandoned.
CCF SA says get your skates on DPTI – snail pace getting projects to the Civil Construction market just won’t cut it!
The 2018/19 State Budget comprised a planned record state government investment of $12 billion in transport and other infrastructure over the next four years. The CCF SA gave the State Budget its tick of approval, saying the budget will grow much needed jobs and provide stimulus to the economy. Unfortunately, most of the 30 projects funded in the budget have not as yet gone to the market. This delay is unacceptable and deprives SA of the stimulus the state desperately requires. Most projects of scale are moving to their final stage. A Valley of Death for the Civil Construction Industry is looming. Large contractors will demobilize and leave the state for projects interstate. The CCF SA is calling on the SA Government to establish as a matter of urgency a task force empowered to take whatever steps are required to clear the blockages and bring government projects to the market in a timely manner.
CCF SA applauds DPTI decision to outsource Road Maintenance