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CIVIL ENDINGEERING & MAJOR PROJECTS
Mid-tier contractors step up for change
The surface construction contract for the recently opened Sydney Metro Northwest line was awarded to Italian companies Salini and Impregilo.
Australia’s mid-tier providers are banding together for more visibility in public procurement decisions. Rail Express reports.
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HAT DO THIESS, SEDGMAN, UGL, CPB Contractors, Abigroup and Baulderstone have in common? The first thing might be that they are all prominent contractors working in various industries in Australia, including construction, rail and mining. But look more closely and it becomes apparent that all six of these contractors are owned by just two companies, CIMIC Group and Lendlease Group, and only the latter is Australian-owned. This is not uncommon corporate practice in itself. Many famous companies considered to be American are actually majority international-owned operations, such as Budweiser (Belgium), Burger King (Canada), 7-Eleven (Japan),
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General Electric (China) and Trader Joe’s (Germany). But in the world of infrastructure development, where public procurement is much more prominent, healthy competition is more readily encouraged. Australia relies heavily on overseas companies to help deliver its infrastructure projects, and state governments vary in opinion when it comes to the importance of integrating local contractors into proceedings. Victorian premier Daniel Andrews has been among the most vocal for change when he delivered the Victorian Local Jobs First Bill last year, establishing the role of a Local Jobs First Commissioner and set “local content requirements” for
88 strategic projects. “No other jurisdiction in Australia sets mandatory targets in legislation – by doing so we’re at the forefront of industry participation – creating thousands of jobs for Victorians and supporting local businesses and industry,” said minister for industry and employment Ben Carroll following the announcement. On the other hand, New South Wales’ transport minister Andrew Constance, who commissioned Spanish construction major Acciona for the Sydney Light Rail project (a decision that has led to a legal tussle with the company), has taken a different tack when it comes to project delivery. Defending a 2016 Baird Government
RAIL EXPRESS | ISSUE 5 2019
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