NSW Government Construction Leadership Group

The NSW Government Construction Leadership Group (CLG), led by Infrastructure  NSW, has been established to drive reform across government in the development,  procurement and delivery of infrastructure and building projects. All the key NSW  Government agencies engaged in the delivery of the large long term pipeline of  infrastructure investment are represented on the CLG.

NSW Government Action Plan: A ten point commitment to the construction sector

The Action Plan recognises that the NSW Government can only achieve its infrastructure objectives in partnership with the private sector and takes a longer term view about the need to drive quality, innovation and cost effectiveness by fostering a thriving and sustainable construction sector in NSW. This Action Plan covers all NSW Government-procured construction and is designed to:

  • encourage an increase in the “supply side” capacity of the sector to meet future demand
  • reduce industry’s costs and “down-time” by making Government procurement processes more efficient
  • develop the skills, capability and capacity of the construction industry’s workforce.
  • encourage culture change and greater diversity in the construction sector and its suppliers
  • foster partnership and collaboration between the public and private sectors to drive innovation in the NSW construction sector.

The CLG and its member agencies will now develop an implementation plan to turn the 10 commitments into a program of specific measures to be rolled out progressively over this coming year. Engagement with industry stakeholders on this roll out will be coordinated through Infrastructure NSW. If you require further information, please contact Infrastructure NSW via mail@insw.com

Construction Procurement Methods – Industry Discussion Paper

The Construction Procurement Methods Industry Discussion Paper, prepared for the Construction Leadership Group (CLG), has been developed to inform industry engagement on different types of procurement models that have been used across New South Wales. It is intended to serve as a basis for discussion for government and industry to identify and consistently define the most commonly used procurement methods, including variations of those models and the features of them.

The CLG has also agreed to develop and publish, in partnership with industry, simple guidelines which document contemporary and best practice for each of the main procurement methods and the circumstances in which each method is likely to be the best option.

Feedback on the discussion paper was sought between December 2018 and February 2019. The CLG is now reviewing the feedback received. Any enquiries regarding the discussion paper should be directed to CLG@treasury.nsw.gov.au

NSW Bid Cost Contributions Policy

The NSW Government can only achieve its infrastructure objectives in partnership with the private sector, and this depends on healthy ongoing competition between a capable field of construction and development firms, sub-contractors and the industry supply chain – not just now, but for years to come. 

The NSW Bid Cost Contributions Policy has been developed by the NSW Government’s Construction Leadership Group (CLG) as part of its NSW Government Action Plan – A Ten Point Commitment to the Construction Sector. It has been endorsed by its member agencies, all of whom are engaged in the delivery of a large long-term pipeline of infrastructure investment on behalf of the NSW Government.

This policy sets out the arrangements the Government has adopted to determine if, when and how it will make a financial contribution to partially offset the cost of bidding for construction and infrastructure projects in NSW.  

Guidance on Security for Construction Projects – Industry Discussion Paper

This Guidance has been prepared for the Construction Leadership Group (CLG) in response to the NSW Government Action Plan: A ten point commitment to the construction sector, and to demonstrate the State’s commitment to reduce the costs of bidding through standardisation of requirements for bonding, parent company guarantees and other forms of security across projects and agencies, based on a realistic assessment of financial and performance-related risks.

This Guidance is to assist government procuring agencies, when acting as Principal to a construction contract, to understand:

  • why there is a need for security for construction projects
  • how to optimise the required types of security in a contract (i.e. the security package)
  • how different factors can impact the effectiveness of each security type
  • the implications that may arise from calling on security.

This Guidance is intended to apply to all types of construction projects and is limited in scope to the key forms of security commonly provided by contractors in New South Wales, namely parent company guarantees (PCG), unconditional undertakings (i.e. bank guarantees and insurance bonds) and cash retention.

The CLG invites interested parties from industry to make a formal submission to provide feedback and comments on this Guidance. The CLG may follow-up with select Respondents to clarify specific feedback. Feedback and comments can be submitted to CLG@treasury.nsw.gov.au by no later than 18 March 2019.

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