9 July 2014

New measures to stimulate construction

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The ACT Government has announced that it will award $10 million dollars worth of ‘ready-now’ construction contracts and make further cuts to red-tape for the construction industry as part of a new ACT Government package to reforms the way that capital works are procured in the territory, Chief Minister, Katy Gallagher announced today.

“The ACT Government is working closely with the ACT construction industry to come up with ways that will stimulate construction activity in the ACT and in turn will help to support the ACT economy through what is expected to be a tough few years,” the Chief Minister said.

“The Building Canberra – Providing an easier way outlines significant reforms to the way that major infrastructure projects are procured and that will streamline processes, eliminate duplication, and provide more opportunities for local businesses.”

“The government has listened to the concerns of the construction industry and has developed a range of reforms that will keep construction of new projects turning over and at the same time providing a buffer to the local economy through construction stimulus.”

The Building Canberra – Providing an easier way framework will:

– deploy new technologies to reduce red tape and duplication in capital works tendering processes; ? introduce thresholds that will unlock more opportunities for ACT-region Small and Medium Enterprises
(SMEs);
– maintain an up-to-date call tender schedule;
– release a list of 20 ready-now contracts totaling $10 million;
– enable continuous improvement through the expansion of mandatory post implementation reviews and
an enhanced database of contractor performance;
– expedite tender evaluation through reducing paperwork and increasing use of preferred contractor
systems; and
– commit to an ethos of cooperative contracting and partnering in the efficient delivery of capital works.

Under these reforms, tendering for work will be made easier through the introduction of an e-tendering system, eliminating duplication and speeding up the tendering process.

The introduction of new pre-qualification categories and assessments against annual project costs provides a more level playing field for smaller local businesses and allows them the opportunity to participate in government tenders.

The Chief Minister said these reforms were a direct result of roundtable discussions following the release of the federal budget.

“I am pleased that the Master Builders Association has worked cooperatively with the ACT Government and provided useful advice to inform policy reforms within government that will help to stimulate construction activity and support to overall ACT economy,” the Chief Minister said.

(Katy Gallagher Media Release)

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rommeldog56 said :

So, is there a list of what these “20 ready-now contracts” totaling m$10 , will be ?

I hope this won’t turn into a mini version of that other economic stimulus package from the last Federal Gov’t – the “Building the Education Revolution” with all the apparent miss management, controversy and alleged wasted taxpayer money that surrounded that.

I think by using the qualification that the projects must be “ready-now”, the ACT Government is avoiding the trap of doing what the Rudd Federal Government did in 2007 in rushing into unbridled spending on non-vital schemes like grossly overpriced school halls/toilet blocks and pink batts.
If this is the case then the ACT Government is to be congratulated in “learning the lesson” but of course, to admit this reasoning, they would be bagging their Federal colleagues. Anyhow, let’s give them the benefit of the doubt.
Then there is the case against stimulus which is that there will always be economic highs and lows and while there may be a perception that there is a downtun at present (where is the evidence?) it makes now sense to bring forward tomorrow’s business to today as this is tantamount to “kicking the can down the road”.
I would also like to know what the chosen projects are and as taxpayers we have a right to know this. I wouldn’t be happy if we find out that all are “pet” projects of the Government’s mates such as a “home for homeless homing pigeons at the Arboretum”.

rommeldog56 said :

I hope this won’t turn into a mini version of that other economic stimulus package from the last Federal Gov’t – the “Building the Education Revolution” with all the apparent miss management, controversy and alleged wasted taxpayer money that surrounded that.

Ah yes, “alleged”, such a useful word isn’t it? If you mean alleged by hyper-ventilating News Corp reporters then yes, if you mean the result of the ANAO audit of he program then no.

So, is there a list of what these “20 ready-now contracts” totaling m$10 , will be ?

I hope this won’t turn into a mini version of that other economic stimulus package from the last Federal Gov’t – the “Building the Education Revolution” with all the apparent miss management, controversy and alleged wasted taxpayer money that surrounded that.

I wouldn’t mind 10 million happy to reform for it too.

Are we in bed with the developers or what?

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