New reforms to deliver better outcomes from procurement on Government projects

• Reforms to procurement processes for non-residential Government building projects
• Promoting a more sustainable building and construction industry in WA
• Changes due to be implemented in three phases with industry consultation

The Cook Government is delivering reforms in procurement practices to bolster the local building and construction industry for Department of Finance-led construction projects including schools, hospitals and police precincts.

The Safe and Fair Reform Package follows recommendations from the Master Builders Association of WA (MBA WA), Building and Construction Consultative Committee (BCCC) and Western Australian unions on how to leverage Government procurement to achieve better outcomes for builders, subcontractors and workers.

BCCC members include the Master Builders Association of WA, Master Plumbers and Gasfitters Association of WA, CFMEU, Multiplex, the Property Council and UnionsWA.

The reforms will help support industry in what has been a challenging environment with labour shortages and supply chain issues.

The first stage of reforms will deliver changes to the Department's contracting framework to improve cashflow for builders, by improving the payment certification process, enabling pre-commencement costs to be claimed by builders and allowing for earlier release and/or reductions in the securities held on contract.

The reforms will also deliver increased transparency on the tendering process, ensure tenders are assessed in a timely manner and make it easier for builders to seek variations to their contracts where required.

The first stage of reforms, taking place this year, will also see a code of conduct developed in consultation with industry that sets out the Government's expectations for the suppliers it does business with.

The second stage will deliver further improvements to contracting terms, including alternative models of contract. Best practice principles for projects valued at $100 million or more will be developed for implementation in 2025. The principles will build on the code of conduct and ensure builders provide the highest possible standards for people engaged on major Department of Finance projects.

The third stage will be delivered in 2026 and enhance the Department of Finance's pre-certification scheme, which will require builders seeking to do work with Government to demonstrate they meet safe and fair standards.

Government will continue to consult with MBA WA and the BCCC, during development and implementation of the reforms.

Comments attributed to Finance Minister Sue Ellery:

"Our Government has listened to industry, peak bodies, unions and contractors to ensure the building and construction industry remains a robust and strong contributor to Western Australia's economy.

"We understand this has been a challenging time for the sector, and we are working to ensure these changes improve cashflow for builders and increase transparency in the tender process.

"We are making structural changes to the way Government does business with industry which will ensure a fair go for everyone.

"Having a sustainable building and construction industry is vital to enable the delivery of the Government's pipeline of works."