Advocacy Highlights

In this edition, I’ve got a pretty easy job to ‘showcase’ our advocacy work over the last quarter – it’s been hectic but hopefully something in here for everyone.

We were pleased to see the Federal Budget reflect some of our Pre-Budget Submission including announcements across our 4 priority areas:

• Practice – measures to provide business support

• People – measures on skills, education and migration

• Procurement – reforms to improve small business access to Commonwealth procurement opportunities

• Pipeline – investment in infrastructure, energy and resources.

Of course, our wish list was longer, but it was positive to see some of our priority areas in the Budget, and we will be advocating to see these reflected in the new Government's Budget too. Remember you can still access our Federal Budget Summary for more information.

The Final Report of the Parliamentary Inquiry into Procurement Practices for Government-Funded Infrastructure was published, with Consult Australia being quoted heavily throughout the almost 200- page report, with over 80 mentions of us on risk, civil liability reforms and go slow to go fast. See later in this edition for a summary of our advocacy wins.

Thanks to those members that completed our Industry Health Check, Pulse Survey in April/May. Please see Latest News on our website for the results report. Unsurprisingly in the current market, most responses nominated staff wages as the biggest business expense, followed closely by the cost of professional indemnity insurance. These two areas were also expected to have the biggest impact on the business in the next six months. As in previous surveys, the increase to the insurance premium experienced by different businesses varied considerably, but most responses indicated a premium increase of between 11-30%. These results are valuable to the team in our advocacy around the country, especially in terms of the need to de-risk the market and to think smarter about skills.

We’ve also made submissions to the Department of Home Affairs on free trade agreement negotiations (stressing skills issues and business barriers) and to Infrastructure Australia on its Delivering Outcomes and Regional Strengths and Infrastructure Gaps reports. Copies of all our submissions are available on our website here.

This is just a quick overview of our activity at the Commonwealth level, remember to watch our Policy Pulse videos, and find out more about what we are doing at the local level from the team below. See also later in this issue our Small Business Spotlight and the Summary of our Productivity Inquiry Submission.

Kristy Eulenstein

Head of Policy and Government Relations

NSW

1) The NSW Committee has been strongly engaged with NSW Government advocating for more balanced contract terms, fair procurement practices, and removing the barriers to doing business in NSW. This is especially so in terms of Project Streamline with Transport for NSW.

2) We are highlighting member concerns on capped rates proposed by Treasury – through its Supplier Input Panel Project. Alison needs more information from members participating in this project to progress our advocacy, please contact Alison if you are involved.

3) We remain active on the building reforms front, wanting to ensure our members understand their obligations and can meet those obligations. Please contact us with any feedback you have on the building reforms and how it is impacting your business.

Alison Kirk

VIC

1) Joint advocacy is our approach to member concerns with the Construction Supplier Register – with quantity surveying and landscape architecture institutions joining us to seek a change to the onerous board obligations currently in place. Contact Mark for more information.

2) We have met with the Department of Treasury and Finance to get clarity on the tender process and how value vs price is assessed. We hope to continue those discussions to improve the environment for business and government.

3) Collaborative contracts have been front of mind with the engagement of Major Road Projects Victoria and their interest in working together with members. It is vital to understand the pros and cons of this model as other clients look to it as a template.

Mark Rogers

SA, Tas & the Territories & A/g WA

ACT

1) At our regular forum inclusive of Consult Australia members with the Major Projects Canberra and the Environment, Planning and Sustainable Design Directorate, the discussion turned to procurement and contractual terms and conditions. Novation clauses were noted as a cause of concern for consultants, as when novated to a contractor, onerous contract clauses are passed to consultants affecting risk, insurances etc. The Directorate will look into this issue, and we will keep members updated.

SA

1) Following a change in government we now look to building strong relationships at both the ministerial level and with leading bureaucrats. Our first step is a Boardroom Lunch in June with Jon Whelan, newly appointed CEO for the Department for Infrastructure and Transport. Jon previously held the role of Executive Director, Transport Project Delivery and we look forward to continuing our positive engagement with Jon and his team.

2) Collaborative engagement with the Department of Environment and Water is key in the successful delivery of the department’s projects. We now meet regularly with the Manager, Procurement Services, and provide an update on the state of the market, share challenges from both sides, along with solutions incorporating best practice.

NT

1) At the recent meeting of the Department of Infrastructure, Planning and Logistics and our Consult Australia Working Group we discussed the challenges faced by our members with design reviews. The Department agreed to a workshop on this topic. The aim of the workshop is to find a solution to streamline the process, so skilled resources in short supply can focus on other work, improving productivity across projects.

TAS

1) As members of the Department of State Growth’s State Roads Industry Consultative Forum we are currently working on a proposed Digital Standard Framework for the consulting industry to deliver a certified model to the construction industry.

2) We recently provided Infrastructure Tasmania with feedback to help inform the development of the SOFIA database, which publishes forward planning of tenders by government departments and government business entities. We have advocated for forward planning information on tenders for design consultants at earlier stages of projects to be included, as this is not generally available.

WA

1) With a strong pipeline of projects and the current challenges with resourcing, we have been working with the WA Government and providing information and data on market capacity. While there are constraints in some areas, we look to opportunities for our members to do early design work for those projects where construction has needed to be delayed.

2) The need to develop a strategy to ensure the future capability and capacity of industry to deliver WA Government transport infrastructure in an efficient and sustainable manner over the coming decades is a high priority. Through the WA Road and Rail Construction and Maintenance Industry Advisory Group (WARRCMIAG), we are working with other industry participants to develop an Industry Sustainability Framework.

Jan Irvine

QLD

1) We secured a win for small business members with legislation passing to secure the Queensland Small Business Commissioner permanently. We look forward to working with the Commissioner to improve the operating environment for our members.

2) In response to member concerns, we met with SeqWater and have set up quarterly meetings. Remember to contact Kristine if you have feedback on your interactions with SeqWater as a client.

3) Our work with Department of Transport & Main Roads (TMR) continues on the Collaborative Procurement and Delivery Model—a streamlined framework for awarding transport contracts based on capability, capacity, past performance and value for money. The expertise of the contract administrator’s network is the next focus area.

Kristine Banks

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