State & Territory Updates

With varying market conditions around the country Consult Australia’s state and territory managers share their insights on key challenges and opportunities for our members.

NSW

Alison Kirk

Firstly, hello from me as the new NSW Manager and thank you to the team and the NSW Committee for the warm welcome. I look forward to meeting more of our members working in NSW as time goes on.

With the pause on construction as a part of the latest lockdown in NSW, pipeline and people issues have obviously been front of mind. The NSW government was very receptive to our advice on what site works by consultants could be allowed (with appropriate restrictions) prior to the full re-opening of construction sites. The government also understands the potential impacts on the timetable of projects, and we continue to advocate for a ramp-up that considers the wellbeing of our people. If members are having an issue relating to time extensions or payments due to the construction pause, please contact me.

Design practitioners and engineers working on Class 2 buildings should now be very aware of the start of the registration and compliance requirements of the Design and Building Practitioners Scheme on 1 July. We have received several member queries which we’ve been able to resolve with the government, contact us if you also need this assistance. Hopefully you have already seen our Guide for Design Practitioners and Engineers which we released in conjunction with Engineers Australia and the Australian Institute of Architects. This guide is a practical resource to help your business tackle the practice issues of contracting, insurance exposure and the requirements under the scheme. This guide has been endorsed by the Office of the Building Commissioner and is available on our website as well as the NSW government website. As we prepare for the review in early 2022, we need to hear from members on what have been the main hurdles to implementing the reforms in your business.

In terms of procurement, members that work on large and complex NSW government projects should be aware of the Premier’s Memorandum which establishes an ‘if not, why not’ application of the 10-point commitment from 2018 to projects of more than $0.5billion value. The Memorandum outlines measures to streamline the way the government procures, increases participation, competition, and efficiency in infrastructure delivery, and ultimately increasing value for money for the people of NSW.

The NSW government has also put into action its commitment to shorten payment times by requiring large businesses which contract with government agencies on contracts valued at more than $7.5 million to pay small business subcontractors within 20 business days. This is in addition the government’s own commitment to pay small businesses directly engaged within five days.

VIC

Cindy Laird

As the new Vic Manager, thank you to the members I have already had contact with and of course the Vic Committee for welcoming me and getting me up to speed on everything that is going on in Victoria. I hope to meet more members, especially those working in Vic over the rest of the year.

With the most recent lockdown here in Victoria, we were lucky to keep construction sites open which meant minimal impact on that on-site advisory work members do and therefore the pipeline. However, like other areas of Australia we are advising government of the industry constraints (including access to enough people) which will make achieving the ambitious program of projects in Victoria. Every lockdown is challenging, especially in terms of impacts on our people so please make use of the mental health information hub on Consult Australia’s website to help you and your staff get through the challenges of remote working.

Engineers practicing in the state will know that the government’s registration scheme started on 1 July 2021, with engineers involved in the ‘building industry’ being the first engineers required to be registered. That is, any civil engineer, electrical engineer, fire safety engineer, mechanical engineer or structural engineer that work for or in connection with the construction, demolition or removal buildings. With buildings meaning all classes of buildings (structures, temporary buildings, temporary structures and any part of a building or structure) under the National Construction Code. This is a much broader range of professions than what was previously known as ‘building practitioner – engineer’ under the Building Act 1993 (Vic). We have released a member guide on the registration scheme, and also direct members to the Consumer Affairs Victoria website for more information.

We note that some members have been impacted by the collapse of Civilink, a civil constructor that was working on the Western Roads Upgrade project. We are actively pursuing the Minister for action on this issue.

On procurement, I am looking forward to engaging with government clients to talk improved contracting and insurance settings. We have been in contact with Major Road Projects Victoria on its contracting model and potential for principal-sourced insurance. Members have also raised concerns with the contracts used by water authorities throughout the state.

QLD

Kristine Banks

2032! It might sound like the Brisbane Olympics are a long way off, but we already know there’s a lot of designing, advising and engineering work to be done before the opening ceremony. The morning after the announcement, Consult Australia hosted a breakfast to discuss the venue masterplan and game changing initiatives for South East QLD with key speakers Scott Smith, CEO South East QLD Council of Mayors, Jason van Paassen from SMEC and Shaun Gallagher, Architect and Principal of Populous. The team at Consult Australia will continue to ensure we are involved in the pipeline of work to deliver the best Olympics ever.

Advocacy with local council clients has been progressing well as we talk procurement, seeking less onerous contracts for consultants and talk about the impact the current insurance market is having on businesses that supply local government. Councils are concerned with a potential drop in quality assurance of drafting work and also the buildability/integration of design work. If you have input on these issues we can communicate to local government or if you have additional concerns about contracts to raise, please contact me.

We have provided advice to the Queensland Government on standardised terms regarding modern slavery obligations in government contracts. Our primary feedback was to ensure that these obligations do not unduly burden business practice, and to suggest a move away from obligations that could be read as contractual warranties. We hope that a balanced approach is reached with obligations only applying to those suppliers that have a duty under the relevant modern slavery legislation.

In the people area we continue to work with the Queensland Major Contractors Association (QMCA) to bring to life our joint Charter for Change. The Charter initiatives were recently reviewed with industry representatives assessing progress and proposing next steps. Complementing this work, Consult Australia has been partnering with Transport and Main Roads (TMR) and other industry bodies on the TMR Infrastructure Industry Engagement Charter. The draft of this charter will be released for consultation later this month and reflects the behaviours of a more collaborative culture.

SA

Jan Irvine

The SA Treasurer has invited Consult Australia to sit on the Department of Treasury and Finance Procurement Industry Advisory Group which has only nine industry groups represented. This will allow us to have direct input into government as the Executive Director of Procurement SA will Chair the group and be reporting into government. Also, in response to member calls for us to engage with the Local Government Association of SA and LGA Procurement, we have established regular meetings to address common challenges and issues.

We have recently enjoyed a number of high-profile Boardroom Lunches with key decision makers. On the pipeline, Infrastructure SA CEO Jeremy Conway took us through the recently released capital intentions statement, talked to the progress of ISA since its inception and covered off on opportunities and challenges his organisation can see across the infrastructure sector that could impact our members. Hot on the heels of Budget Day 2021 we hosted the Treasurer, Rob Lucas MLC, for a post budget discussion. At the early August Boardroom Lunch our members enjoyed the opportunity to sit down with Susana Fueyo, Executive Director North South Corridor and discuss this state's most important infrastructure project.

NT

Advocacy with the NT government has been progressing across several issues. We met with the General Managers of the Department of Infrastructure, Planning and Logistics to propose early and continuous industry engagement to better understand the pipeline and programming of such projects and the position of the NT consulting industry prior to and during the roll-out of such funding. We believe this will assist with industry capacity planning, better industry alignment, hence resulting in improved outcomes. It has been agreed we meet again for a deeper dive on capacity and procurement.

Implementation of the Value for Territory Assessment Framework has commenced with new systems, tools and training being rolled out internally across the Northern Territory Government. The Department of Industry, Trade and Tourism (DITT) invited Consult Australia to attend an update on the progress of the implementation of the Framework and the work underway to develop the Aboriginal Procurement Policy and key definitions. DITT will also present options for incorporating Aboriginal Procurement Policy into that Framework and have requested our views and feedback. DITT CEO Shaun Drabsch wrote to thank Consult Australia for our engagement with the department as they consult, develop and implement procurement initiatives as our feedback and insight has been and will continue to be valued.

In the people space, we canvassed our members in late May to understand the local workforce challenges and shared this data with the DITT to highlight the acute NT workforce shortages within the consulting industry. We are now in discussions with DITT regarding the issue, and opportunities to support recruitment and retention of those vital skills.

ACT

Our quarterly forum with the Environment, Planning and Sustainable Development Directorate (EPSDD) kicked off in May with a positive twoway open dialogue to enhance the working relationship between consultants and the EPSDD, with a focus on the ACT government’s 2040 zero emissions target and ambitious sustainable buildings policy covering practice areas such as building codes, registration of engineers, regulations for our industry. To achieve government targets it was agreed we need to retain our people and grow our skills. This forum is positioned as a steering group to float concepts by and share information. The group also agreed to keep the option to engage in dialogue outside of the meetings on specialist topics with appropriate individuals in attendance.

Agenda items on the table for the Major Projects Canberra (MPC) quarterly forums have included the pipeline of works and how to deliver projects well, sharing of best practice and industry initiatives to ensure the wellbeing of our people, and we have promoted the need for improved procurement practices to enable better project outcomes with a focus on tender arrangements, risk allocation, contract models and terms as well as liability reform. We presented Professional Indemnity (PI) insurance as one of the most complex and topical issues affecting our industry and outlined a range of factors influencing this, including global pressures and increased litigation in Australia which has seen PI insurance premiums rise significantly, while coverage has reduced often with restrictive policy conditions.

Our ACT members have benefited from our strong pipeline of high-profile Boardroom Lunches with key decision makers. The CEO of the ACT City Renewal Authority outline their key priorities, pipeline and timeframes for projects and project delivery mechanisms. The Chief Executive of the National Capital Authority advised of upcoming priorities relevant to our industry. The Assistant Secretary, Estate Planning within the Department of Defence explained the ambitious program to change the footprint of Defence in the ACT and the impact this will have on the local environment and how consultants can best work with Defence as they embark on this program

TAS

The establishment of regular meetings with Infrastructure Tasmania, Treasury, Department of State Growth and TasWater has been proceeding well. If members would like us to make similar progress with other Tasmanian clients, please let me know.

We were pleased to hear from Martin Blake, CEO of Infrastructure Tasmania about the pipeline project which will map announced state infrastructure projects. This tool will assist government plan future projects and also give the industry a clear driver to discuss capacity issues.

To improve how procurement is done, the Tasmanian Treasury is keen to hear industry feedback on their pre-qualification scheme – that are the cost and administrative burdens stopping your business from getting involved in this scheme? I am also looking into the directions Treasury issues to state government clients to identify any improvements at a whole of government level.

We recently met with the Civil Constructors Federation (CCF) Tas to discuss the common people issues faced by consultants and contractors in the current environment and how collaborative relationships could really ease a lot of the burden. In particular we talked about how principal clients set the tone for the whole project and how adversarial and onerous contracts impact on everyone’s mental health.

We also met with Peter Graham the Director of Consumer Affairs and Fair Trading / Director of Building Control within the Department of Justice to talk how national moves with respect to automatic mutual recognition and building reforms would impact business practice in Tasmania. The Director is keen to hear from industry about the pain points that are being felt, including any insurance concerns noting the Department had recorded no concerns about insurance issues in Tasmania since 2019 when it was a significant issue for building surveyors.

WA

Diane Dowdell

We have had a significant win on pipeline scheduling, with the Premier hosting an industry roundtable to understand industry constraints and opportunities. It was agreed to extend certain state government infrastructure projects to assist in dealing with the people capacity restrictions we are seeing. To ensure the right projects are prioritised, we continue to work with the government, including the Transport Portfolio which includes Main Roads WA and the Public Transport Authority.

Further meetings have been held with the Office of the Minister for Finance to discuss other government procurement activities and transparency of government building activities. We are continuing to highlight consultants’ desire to see a smooth pipeline of work and have been assured of future meetings with the Minister’s office and departmental staff on this issue.

Members working with local government in WA should note that the City of Gosnells has updated its general conditions of a purchase order – including changes to the insurance thresholds. The level of professional indemnity insurance has been reduced from $10million to $2million. This is a positive outcome from both as it demonstrates the council is taking into account the pressures on business practice from the current insurance market. However, Consult Australia continues to advocate for clients to focus on setting reasonable liability caps rather than insurance limits. Remember insurance in a business tool for your business, not a risk mitigation strategy for a client (unless the client is acquiring that insurance).

With the pause on construction as a part of the latest lockdown in NSW, pipeline and people issues have obviously been front of mind. The NSW government was very receptive to our advice on what site works by consultants could be allowed (with appropriate restrictions) prior to the full re-opening of construction sites. The government also understands the potential impacts on the timetable of projects, and we continue to advocate for a ramp-up that considers the wellbeing of our people. If members are having an issue relating to time extensions or payments due to the construction pause, please contact me.

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