Better Planning, Better

Procurement, A Better WA WA Election 2017

1.0 Who we are

We are Consult Australia and we help better the operating environment for consulting

firms within the built environment so they can do what they do best: help shape a better

world.

Consult Australia represents an industry comprising of some 48 000 consulting companies

nationwide, who generate in excess of $40 billion in revenue annually, and range from some

of the world’s largest and most innovative companies with global expertise, through to

smaller firms who are passionate about improving the area in which they operate. Consult

Australia represents engineers, architects, surveyors, project managers, management

consultants and more, who use their collective skill and expertise to make and shape our

cities and towns into more liveable and affordable places in which to live. Beyond

professions, we represent ideas and new ways of working.

Every major built environment project in WA and the surrounding region has involved

Consult Australia member firms: from the pipes that provide us water, the roads, bridges

and airports that connect us, through to the galleries, stadiums and precincts that inspire

us. We represent professionals who make our built environment better.

2.0 What drives us?

We believe in investment in infrastructure proven to help economies grow. We believe in working closely with government and private industry, together

with the communities they serve, in order to make places and physical spaces better areas in which to live.

We believe our young professionals within our firms are world class and they are the future leaders and innovators of our industry.

We believe a diverse workforce is a better workforce. We believe in long-term planning because great cities require decades of foresight. We believe in great design and its importance in creating a sense of pride, place

and belonging amongst communities. We choose the sustainable over the quick fix, quality over quantity, innovation

over the easy option. We believe in progress.

3.0 Some of our work

Building the West – Improving project consultation, planning and approval processes for public infrastructure projects in Western Australia1

Economic Benefits of Better Procurement Practices - A definitive guide to improving procurement on public infrastructure projects

Better Buying Better Outcomes – The consulting industry’s view of procurement Value Capture Roadmap – The role of value capture in funding public infrastructure Valuing Better Engagement – A framework to help project managers improve

stakeholder engagement

4.0 Our WA election priorities

As the adjustment from construction to production within the resources sector continues,

operating conditions for consulting firms within the built environment in WA remains

challenging. Engineering construction is set to bottom out with only modest expenditure

earmarked for WA in the non-residential construction sector in the next three to four

years as compared to a peak in 2011.

Meanwhile there is forecast growth in the Eastern States, such as NSW and Victoria, which

is being driven by solid and sound long-term infrastructure plans and planning within

their respective jurisdictions.

In the lead up to this WA State Election in March 2017, we at Consult Australia are calling

on both government and private industry to ‘collaborate more’ and ‘conflict less’ with our

experts and use their skills in planning, designing and managing built environment

projects for the betterment of the State.

To capture this opportunity, we recommend…

1

Better Planning

- Establish an independent statutory body made up of built environment experts from across Government and Industry;

- Task this independent body with the development of a business case proven, prioritised 15 to 30-year rolling infrastructure plan for

the State; and - Seek to implement a constant pipeline of projects so as to enable

consulting firms to invest locally in the development of their workforce.

1 Paper compiled by the ‘Infrastructure Coalition’: a collective of industry peak bodies including Consult Australia,

Engineers Australia, Master Builders Association, Society of Construction Law, Construction Contractors Association of

WA, Civil Contractors Federation, Australian Water Association, and Institute of Public Works Engineering Australasia.

2

Better Procurement

- Foster a positive and value driven procurement culture based on open and collaborative relationships;

- Cease imposing unreasonable contract terms on consultants; and - Maintain all contracts signed between government & industry.

3

A Better WA - Reap and reinvest the economic and social benefits obtained

through better infrastructure planning and procurement practices;

4.1 Election Priorities in detail

PRIORITY ONE: Better Planning

- Establish an independent statutory body made up of built environment experts from

across Government and Industry;

- Task this independent body with the development of a business case proven and

prioritised 15 to 30-year rolling infrastructure plan for the State; and

- Seek to implement a constant pipeline of projects so as to enable consulting firms to

invest locally in the development of their workforce.

Critical infrastructure to sustain a population expected to double by 2050 should not be constrained by funding or political preference. With an expected doubling of the Perth and Peel region’s population, in only a relatively short period of time, the need to plan for, and build, the infrastructure required to service this need will remain regardless of what is in the purse and who holds the strings.

As advocated strongly by Consult Australia, and other Infrastructure Coalition2 members, the establishment of a detailed fifteen to thirty-year evidence-based (business case proven, prioritised) independent infrastructure plan setting out needs to accommodate the State’s extensive population growth is critical for the following reasons:

2 Infrastructure Coalition: a collective of industry peak bodies including Consult Australia, Engineers Australia, Master

Builders Association, Society of Construction Law, Construction Contractors Association of WA, Civil Contractors Federation, Australian Water Association, and Institute of Public Works Engineering Australasia.

- COST - The use of sound and solid long term, business case proven, prioritised infrastructure planning in the State by taking a holistic approach to infrastructure investment will save tax-payer money.

- INVESTMENT & SKILLS - Long term planning builds industry and investor confidence in WA’s management of its assets. Compelling narratives about a city’s long term prospects both enhance its attractiveness to businesses and workers but also enables the long-term investment by firms in the development of local skilled workforces to help mitigate against the ‘pull’ effect seen recently from interstate and overseas.

- VISION - The liveability and attractiveness of one of the most liveable cities and

regions in the world is contingent on further refining the Perth and Peel Region’s identity and ‘sense of place’. A long-term infrastructure plan, as devised by an independent statutory authority, will be essential to ensure that such a vision is defined, refined and implemented to ensure we remain one of the best places in the world in which to live.

- INNOVATION - Innovative approaches to our built environment must continue to

be at the forefront of any State Government’s agenda post March 2017. As the amount of public funds available for infrastructure investment in the State remains constrained due to the current and future projected budget deficit, the potential benefits of things like different finance models, such as value capture, and the continual advancements in building information modelling (BIM) technologies, processes and procedures, will be key to getting the best outcomes in infrastructure investment for the State.

- Whilst private software developers and industry will largely drive advancements

and innovation of BIM software and technology, the opportunity for the WA State Government to play a lead role in helping create and shape a set of standardised BIM principles nationally, as already has or will be done in numerous other countries, will likely provide further economic and social benefit back to the community by way of more efficiently built and managed State infrastructure.

- COLLABORATION - The opportunity to obtain agreement across political and

state boundary divides on planning regulation and standards will be essential to the longer-term infrastructure needs of the State. There is much to be learnt from other National and State based independent infrastructure authorities, like Infrastructure Australia, Infrastructure Vic, Infrastructure NSW and Building Queensland.

- RESILIENCE - The opportunity to build resilience, through the early identification

of risk by an independent infrastructure planning authority, will be essential to ensure Perth, Peel and greater WA, can cope with various economic, environmental and social changes/disruptions that may come.

PRIORITY TWO: Better Procurement

- Foster a positive and value driven procurement culture based on open and collaborative

relationships;

- Cease imposing unreasonable contract terms on consultants; and

- Maintain all contracts signed between government & industry.

A POSITIVE AND VALUE DRIVEN PROCUREMENT CULTURE – Government and Industry should seek to be the ‘model’ client by moving to a more

positive and value driven procurement culture based on open and collaborative relationships, quality and value for taxpayers.

Government must invest in the skills of its procurement professionals and ensure the right mix of skills exists on procurement teams.

Early engagement and collaboration with industry, so that government can understand what’s possible, and where risks lie. This includes developing better briefs and reallocating resources to the front end of a project.

Government agencies should be prepared to explain why they are following a particular procurement practice. This allows for service providers to better understand the needs of their client, and increases empathy. It also forces clients to examine whether a particular practice is necessary, given that it may cost them more.

UNREASONABLE CONTRACT TERMS –

At the legislative level remove the ability to disproportionately allocate risk onto parties to a contract. Government should: - remove reference to section ‘1F’ from s4(A)(1) of the WA Civil Liability Act 2002 which allows the contracting out of proportionate liability; and - expressly prohibit the allocation of unlimited liability when contracting.

As an interim to legislative change, client’s (including State Government Departments of Finance and Treasury and private sector clients such as constructors and developers) should develop and apply limited liability guidelines to provide industry with certainty on insurable risk.

Clients (government and industry) should adopt AS4122-2010 General Conditions of Contract for Consultants unaltered.

MAINTAIN CONTRACTS –

Breaking contracts between government and industry decimates industry confidence; debilitates long-term planning; raises issues surrounding sovereign risk; and, costs the taxpayer. Consult Australia does not endorse the policy of tearing up contracts.

Consult Australia recommends better bi-partisan long-term planning as facilitated by an independent statutory infrastructure planning authority to help ensure the occurrence of any such contract cancellations are minimised.

PRIORITY THREE: A Better WA

- Reap and reinvest the economic, environmental and social benefits obtained through

better infrastructure planning and procurement practices to make this State even better;

A BETTER WA -

A self-explanatory priority which seeks to have the economic, environmental and social benefits obtained through better planning and procurement practices reinvested into further improving the liveability standards within the State.

Consult Australia represents an industry comprising of some 48 000 consulting companies nationwide, who

generate in excess of $40 billion in revenue annually, and range from some of the world’s largest and most

innovative companies with global expertise, through to smaller firms who are passionate about improving the

area in which they operate. Consult Australia represents engineers, architects, surveyors, project managers,

management consultants and more, who use their collective skill and expertise to make and shape our cities

and towns into more liveable and affordable places in which to live. Beyond professions, we represent ideas

and new ways of working.

For more information, please contact:

Steven Coghlan, WA State Manager, Steve@consultaustralia.com.au or 0404 831 627

www.consultaustralia.com.au/wa