IA highlights urgency of procurement reform

Roads Australia (RA) says the second Infrastructure Market Capacity Report released by Infrastructure Australia (IA) today underscores the urgent need for further procurement reform to put the transport infrastructure sector on a more sustainable footing.

“It is evident that our industry is facing a compounding range of challenges in the current economic climate, including cost escalations, skills shortages and stagnating productivity. Regrettably, these challenges are already having a serious impact on the viability of some industry participants,” said RA CEO Michael Kilgariff.

“IA notes that of the $237 billion that will be spent on major public infrastructure projects over the next five years, nearly two thirds ($148.4 billion or 63%) will be spent on transport projects.”

“Yet as the report shows, there are serious pressures impeding industry’s capacity to deliver this pipeline, including a severe labour force shortage and increasing costs of materials.”

“Many of the remedies IA outlines align with recommendations RA has made over the past two years to improve sequencing in the pipeline of transport infrastructure projects and enhance early planning and due diligence work.”

“The report also highlights why we must accelerate efforts to attract more women to the sector’s workforce, embrace circular economy opportunities and deliver greater productivity benefits through technology.”

“These issues are at the forefront of further recommendations RA will be making in its own updated report on options for procurement reform, which will be released in the coming days.”

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