Since inception, the Capacity Chapter has recognised the need for national policy reflecting both industry and government commitment to improving industry effectiveness and efficiency, specifically:
- Best use of existing capacity by reducing the complexity and cost of bidding and the risk in traditional forms of contracts;
- Providing confidence in future work flows (predictability) and contract conditions to promote investment in capability;
- Accessing additional capacity and capability.
Cost of Tendering 2017 Survey Results
At the National Roads Summit 2017, the Capacity Chapter hosted a one hour plenary session on procurement. During the session, the Chapter Deputy, Dan Reeve, launched the results of the 2017 Cost of Tendering Survey to members. The survey compiled detailed information from 38 valid projects with great variability in delivery model and value, including 4 international projects. The majority of projects assessed were delivered via the D&C model.
Key observations from the survey include:
- 87% of infrastructure projects examined reported bids costs below 2% of total tender price
- No international project reported bid costs higher than 2% of tender price
- 47% of projects ranked external costs over 40% of the total bid cost
- Victoria and NSW reported the least bid cost as a percentage of tender price
- 4 out of 38 projects reported being reimbursed for bid costs. Of those reimbursed, 50% of reimbursements covered external costs
- International projects reported design costs were less than the average
- Good performing projects report lower bid costs as a percentage of tender price
- Poor performing projects report high red percentage of tender price allocated to risk
- Where the risk allocation is fair, the majority of projects perform well
The Chapter continues to liaise with governments, industry and key stakeholders to find opportunities to work together to improve procurement efficiency. For more information please refer to the Cost of Tendering 2017 Survey Results.
Road Barrier Assessment Reforms
Roads Australia’s process of bringing industry and agencies together to review technical specifications has achieved its first ‘win’, with Austroads implementing reforms to the assessment of safety barriers.
Since the first industry-agency policy session held in Sydney in April, the Austroads Safety Barrier Assessment Panel has implemented process reforms to reduce the time taken to issue a determination on the status of safety barrier products.
In 2016, the Roads Australia Capacity Chapter worked with Austroads and key stakeholders to develop a national platform for road safety barrier installer accreditation.