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Promoting Excellence in the Built Environment

Consult Australia New South Wales

A hub for advanced professional services

New South Wales is home to over 8,000 firms consulting in the built and natural environment.

In recent years, a renewed pipeline of major projects, alongside the emergence of new markets in oil and gas, has restored confidence in the market for these services across the State.

Many larger consulting firms continue to look for new opportunities to expand in New South Wales alongside those smaller firms operating throughout the State’s cities and regional centres. Increasingly the potential for New South Wales to support a new hub for advanced professional services has become clear.

Success in the design and delivery of current major projects supporting economic growth and renewal

across New South Wales, now needs to be supported by a further robust long-term pipeline of funded projects. Economic, policy and regulatory settings that support the development of this pipeline will release a new wave of investment across the State and embed and expand those advanced professional services now critical for future growth, competitiveness and jobs.

Consult Australia recommends:

Planning and developing a stronger infrastructure pipeline;

Releasing new funds for infrastructure investment;

Supporting best practice procurement; and

Creating a better business environment.

The challenge and opportunity ahead

After many years of slow and stagnant development in New South Wales, business is now more optimistic about the potential for the State to realise the Government’s goal to be number one again. With the delivery of a strong initial reform agenda and a number of major projects, there is now a new challenge to continue this momentum and maintain confidence in the longer-term.

As states and territories struggle to identify new ways to fund their infrastructure backlog against increasing pressure to maintain credit ratings, it is more important than ever that all spheres of government are ambitious in their policy development and deliver the leadership necessary to support long-term business confidence.

With targeted intervention, governments can build productivity and mitigate the risk created by extremes in boom/bust construction cycles. In the longer-term this will lower construction costs for future investment when sustained demand will avoid losing those critical skills essential for later growth and more expensive to replace once lost.

OUR RECOMMENDATIONS

Planning and developing the infrastructure pipeline

As a matter of urgency, task Infrastructure NSW (INSW) with the development of a 10 year fully funded Priority Plan and delivery schedule for infrastructure across the State (inclusive of short, medium and longer-term deliverables for 2, 5 and 10 years). This Priority Plan would be supported by the parallel development of a new 30 year Infrastructure Plan for NSW, associated regional and local infrastructure plans and account for the availability of skills, the economic cycle, and broad, long-term cost benefit analysis.

Invest in early feasibility and design studies, outsourced to support local industry, to help ensure a continuous supply of a wide range of ‘shovel ready’ projects ready to proceed as soon as funds are made available.

Strengthen the role of INSW in its capacity to provide independent expert and transparent advice to government supporting a stronger interface with infrastructure Australia.

Support long-term integrated strategic planning and best-practice local government by implementing as a matter of urgency the recommendations of the NSW Independent Local Government Review Panel.

Support effective stakeholder engagement that delivers value for money outcomes on major projects and eases the transparent passage of clearly identified state significant developments and infrastructure.

Work with all spheres of government, the community and business to plan for the development of the first stage of a Western Sydney airport at Badgery’s Creek; in line with the recommendations from the 2012 Joint Study on aviation capacity for the Sydney region.

Releasing new funds for infrastructure investment

Continue the recycling of existing assets with the allocation of all funds realised into Restart NSW. Support a shift to intelligent and systemic use of ‘user pays’ principles as a means to fund new infrastructure, manage congestion and encourage appropriate modal shifts.

PROMOTING EXCELLENCE IN THE BUILT ENVIRONMENT

Develop and implement an integrated funding framework releasing new funds for infrastructure investment that includes:

Slowing the path to surplus and redirecting available funds to productivity enhancing infrastructure.

Leveraging funds available through Restart NSW with a new ‘bond bank’ providing seed finance and attracting private investment to qualifying projects identified through broad, long-term cost benefit analysis.

Establishing a Value Capture Unit within Infrastructure NSW to identify opportunities to fund new infrastructure by leveraging the consequent increase in surrounding property values.

Supporting best practice procurement

Support our calls for the establishment of a National Procurement Centre of Excellence to: bring together procurement expertise across government in both construction and non-construction procurement; improve business consultation and engagement; and develop and support the implementation and use of best practice, fairer contracts (incorporating fair allocation of risk), guidelines and training for agency procurement officers.

Capture the ‘design dividend’ and associated value for money outcomes across the whole project life cycle by:

Building procurement capability across government (as above);

Ensuring better balance between quality, sustainability, cost and time; and

Helping to ensure the selection and application of the most appropriate procurement processes for projects across New South Wales.

Continue to review and reform government procurement processes and policy, including for example the delivery and unamended use across government of a new standard contract for public sector agencies engaging with consultants.

In consultation with business, strengthen the policy and guidelines that govern and facilitate unsolicited development proposals from the private sector.

Establish a pool of highly regarded former and current industry experts (‘Grey Panthers’ keen to fulfil a public service during or at the end of a successful career) to provide advice and support for project scoping and bid evaluation teams on complex or major projects. Grey Panthers’ expertise would build procurement capability across government, support innovation in design and delivery, challenge inefficient application of standards, minimise the potential for gold-plating and help ensure and report against value for money outcomes.

Creating a better business environment

Ensure national consistency in the introduction of any state-based registration or certification of professionals working in the built environment.

Introduce an Education and Training Incentive to support business investment in graduates and continuing professional development for staff employed in New South Wales firms.

Lead the adoption through government of new technologies such as Building Information Modelling and Integrated Project Delivery.

Continue to support access to skilled workers through an effective skilled migration program

Who benefits?

Consult Australia believes that these initiatives will help secure a more productive, prosperous future for New South Wales through more competitive businesses, new jobs and a better built environment:

New South Wales will be stronger for these initiatives as a consequence of greater efficiencies in project delivery, better value for money for the tax-payer, and increased productivity secured for the long-term through a robust pipeline of strategic economic infrastructure.

Local industry will generate jobs and be more competitive both internationally and nationally through new export opportunities and a better business operating environment.

New South Wales’ will demonstrate it is open for business through ongoing investment in the built environment and infrastructure that supports the productivity, liveability and sustainability of New South Wales’ urban and regional centres.

Realising New South Wales’ potential

Consult Australia’s recommendations provide the basis for a new conversation with all spheres of government; supporting a better future for Consult Australia’s member firms, wider industry, government and the broader community alike.

More collaborative relationships between business and government will realise wide-spread benefits. With these reforms, government will build on our strengths, boost productivity and keep businesses, jobs and skills in New South Wales.

We welcome your feedback on these ideas, removing barriers to their implementation and promoting continued business success, sustainability and prosperity for New South Wales.

Our industry

Consult Australia is the industry association that represents the business interests of consulting firms operating in the built and natural environment across Australia. Our member firms’ services include, but are not limited to: design; architecture; technology; engineering; surveying; legal; and management solutions.

Contact

Alexia Lidas NSW State Manager P. (02) 8252 6708 M. 0405 977 550 E. [email protected] W. www.consultaustralia.com.au/nsw/

PROMOTING EXCELLENCE IN THE BUILT ENVIRONMENT

48,000 firms

$1.4 billion in exports

240,000 employees

$40 billion in revenue