List of Recommendations

Recommendation 1

2.45

The committee recommends, with a view to addressing Australia’s historically piecemeal approach to infrastructure planning and project delivery, the Australian Government investigate, in consultation with state, territory and local governments, and relevant industry bodies and stakeholders, how to facilitate better planning and coordination of the infrastructure pipeline. As part of this work, consideration should be given to:

the effectiveness of planning, and stakeholder and industry engagement prior to project commitments being made

avenues for enhancing cooperation with existing bodies, and/or bolstering independent expertise, to support more integrated and holistic infrastructure planning

extending governments’ approach to long‐term infrastructure planning from a decade to a strategic outlook of 20 to 50 years, as applicable

periodic reporting on priorities and progress on the 2021 Australian Infrastructure Plan items for which the Australian Government has been identified as the proposed lead agency.

Recommendation 2

4.118

Given the crucial role that procurement plays in planning, the tendering process and delivery of infrastructure projects, the committee recommends that the Australian Government review the practical application of the Commonwealth Procurement Rules, with a particular focus on the extent to which factors other than price are assessed in practice.

As part of this work, the Australian Government should explore ways to support the training of government procurement officials in procurement best practice approaches to support sophisticated assessments of value for money, and ways to maximise Australian local industry engagement.

Recommendation 3

4.121

The committee recommends that the Australian Government, in consultation with state, territory and local governments, establish a mechanism for monitoring and rating funding recipients’ performance on government-funded infrastructure projects, capturing elements of whether the project was delivered to the required standards, on time and on budget.

Recommendation 4

4.123

The committee recommends that state, territory and local government infrastructure projects that receive Australian Government funding should be subject to verification of value for money by the Australian Government or a specified entity. To support this, the Australian Government should establish a mechanism for assessing state, territory and local governments’ plans and performance for proposed and delivered infrastructure projects using Australian Government funds, capturing elements of project delivery to the required standards, on time and on budget.

Recommendation 5

4.127

To improve planning, procurement and delivery efficiencies for infrastructure projects, the committee recommends the Australian Government, in consultation with state, territory and local governments, explores opportunities for standardisation on like projects.

Recommendation 6

6.136

The committee sees increasing the access of tier two and three companies, and related Australian small and medium enterprises, to projects in the Australian infrastructure pipeline as key to enhancing Australia’s sovereign industry capacity. Accordingly, the committee recommends that the Australian Government examine ways to maximise developing Australia’s sovereign capacity in infrastructure delivery. As part of this work, consideration should be given to:

providing opportunities in procurement and contracting to engage local industry and utilise local content

ways to break up projects into packages of less than $500 million to increase competitiveness by tier two and three companies

making as a condition of Australian Government funding for major infrastructure projects over $500 million industry sustainability criteria within the early stages of procurement design that encourage tier one contractors to partner/joint venture with a non‐tier one company in the head contract

education and training for government officials to support these objectives

reviewing market conditions for infrastructure insurances and the impact on small and medium enterprises.

Recommendation 7

7.63

The committee recognises the potential benefits for increased efficiencies and productivity through the adoption of a digital by default approach in infrastructure projects, in which governments take the lead in providing accessible digital options that can be utilised by government officials and businesses, from planning to post‐delivery assessment and, where applicable, for future application to like projects.

The committee recommends that the Australian Government in consultation with state, territory and local governments, support a digital by default approach in infrastructure projects, with consideration for:

the digital by default recommendations in the 2021 Australian Infrastructure Plan

tender requirements that utilise Building Information Modelling (BIM) or similar technologies

supporting openBIM or similarly interoperable methods for digital delivery that allow for exchanging project information

fostering contractor upskilling for small and medium enterprises in digital approaches when undertaking government‐funded infrastructure projects

facilitating whole of life digital strategies in project plans.

Recommendation 8

8.45

To deliver on Australia’s significant infrastructure pipeline of projects over the next decade, the committee acknowledges the importance of improving productivity in the construction industry and recommends that the Australian Government investigate how in the tender and delivery processes for government-funded infrastructure projects, firms can demonstrate their:

commitment to, and compliance with, modern workplace standards

support for sector cultural reform in areas including wellbeing, working hours and diversity of their workforces, and having regard to the Culture Standard for the Construction Industry being developed by the Construction Industry Culture Taskforce.

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