State finance minister Sue Ellery says a new three-staged reform of procurement practices across Department of Finance-led construction projects will “ensure a fair go for everyone” within Western Australia's building and construction industry.
State finance minister Sue Ellery says a new three-staged reform of procurement practices across Department of Finance-led construction projects will “ensure a fair go for everyone” within Western Australia's building and construction industry.
Several of the reforms within the Safe and Fair Reform Package, announced on Tuesday morning, are based around tailored recommendations from industry leaders – including the Master Builders Association of WA, which has been calling for improvement and favourable industry outcomes since December 2022.
The initial phase of reforms, which will begin later this year, are focused on improving the payment certification process involving non-residential building projects, which the state government believes will improve cashflow for builders, who will also be able to claim pre-commencement costs.
Following consultation with industry stakeholders, a code of conduct will be created, which will ensure all builders are well-versed on expectations expected of them by the state government.
In addition, enhanced transparency regarding the assessment of tenders is also a key focal point during the initial stage.
“Our government has listened to industry, peak bodies, unions and contractors to ensure the building and construction industry remains a robust and strong contributor to Western Australia’s economy,” Ms Ellery said.
“We understand this has been a challenging time for the sector, and we are working to ensure these changes improve cashflow for builders and increase transparency in the tender process.”
The second stage of reforms, which will be rolled out next year, are centred around improvements to not only contract terms, but also alternative contract models.
Business News understands best practice principles for projects valued over $100 million will also be developed for implementation in 2025.
The third and final stage, earmarked for 2026, is designed to ensure builders are able to demonstrate to the state government that they are meet all required standards from fairness and safety perspective.
MBAWA chief executive officer Matthew Pollock said the reforms were significant, given the industry's input.
“These are industry-led reforms with the Cook government today supporting 13 of the 18 recommendations put to them through the joint working group between Master Builders WA and the Department of Finance,” he said.
“These landmark reforms are the most important in decades and have been made possible through the productive dialogue between government and industry.
“These reforms will fundamentally change the way government does business with industry and will improve the relationship between government as the largest developer and principal and head contractors on major construction projects.
“Central to these changes are provisions that provide a fairer and better structured model which apportions contract risk more fairly between parties."
