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Capacity Chapter News - April 2016

RA partners with Ducere to deliver cost of tendering study

Roads Australia is embarking on a major research project with Ducere to investigate the cost of tendering in Australia.

Overseen by our Capacity Chapter, the project will seek answers to why the cost of bidding is so high in Australia relative to other international markets, and make recommendations on how to reduce those costs.

The project will be undertaken in two stages. Ducere will initially undertake a scoping study to develop a process to investigate the efficiency of current tender practices. In the second stage, that process will be implemented to deliver a comprehensive picture of tendering in Australia today, including a comparison of international costs of tendering.

RA members and stakeholders will play a central role in the project, participating in interviews during both stages.

The final report will make recommendations to improve the cost and time efficiency of the tender process, and highlight key areas where the recommended improvements can deliver better value outcomes.

Roads Australia will take the report findings to both government and industry to argue for changes in current tendering practices.

Our partner in this project, Dūcere, is a leading business school delivering an industry-relevant curriculum structured by some of the world’s most successful leaders, and in partnership with universities in Australia and abroad. Here in Australia, former Prime Minister Julia Gillard is Ducere’s Chancellor.  

Launched this month, the cost of tendering project is expected to be completed by November. 


Procurement survey identifies support for harmonisation across standard delivery models

The road industry has given a tick of support for the harmonisation of common contracting methods for standard delivery models, but says agencies are generally still demanding too much documentation in tender submissions and need to strengthen the pre-qualification process.

These were among the key finding of the Capacity Chapter’s 2015 Procurement Survey, the summary results of which are now available on the Chapter Presentation and Papers webpage.

Detailed results pertaining to each road agency are currently being prepared and presented to the agencies for consideration and feedback. Once the feedback is in, the Chapter will be hosting further workshops with industry and agencies to find common ground and get traction on some of the key issues raised.

Among the findings of the Survey: