The current economic environment has created unprecedented competition for commercial partners to deliver projects, with the water sector directly competing with other sectors for resources. In addition, water utilities are under enormous cost delivery pressure to meet community expectations particularly regarding affordability, whilst addressing climate change and aging infrastructure, coupled with loss of capacity and capability to other sectors.
In 2022, Water Services Association of Australia (WSAA) formed a working group of senior leaders from water businesses, consultants and suppliers to determine how the sector could effectively respond to these challenges to our procurement practices. The group identified that a strong foundation to good procurement practices is the NSW 10-point commitment to the construction sector[1]. Based on discussions with a number of stakeholders the working group identified the following four key areas for enhancing water sector procurement practices for infrastructure:
- Optimised risk allocation
- Effective collaborative procurement
- Standardised agreements
- Reducing bid costs
Good practice for each of these areas is outlined in the attached 4 point plan. Note that this is intended to be a living document, and any comments and improvement suggestions are welcome.
[1] Principles replicated from NSW Government Action Plan - A 10 Point commitment to the construction sector. June 2018