More red tape for government projects

More red tape for government projects?The Australian Building Construction Commission legislation has passed, bringing back a cop on the beat. But a small amendment may pose challenges for government procurement.The bill, which passed through the Senate last week, features an amendment which requires government projects worth more than $4 million to show preference for local suppliers, sources and labour, and to ensure materials meet local standards.Specifically, tenderers will be chosen based on the “extent to which domestically-sourced and manufactured building materials will be used to undertake the building work” and whether the project “will contribute to skills growth”.So, what does this mean for the property industry?”Mostly, we expect it will mean that tenderers will have to incorporate the preference of government into their tender bids,” says Property Council chief executive Ken Morrison.The Australian Institute of Quantity Surveyors (AIQS) says application of the legislation, particularly those aspects associated with procurement, should go some way to supporting the use of conforming and complying products in construction projects as well as promoting the use of local products. “It will be important to ensure the implementation of these changes provides an economical solution to the built environment as well as supporting the economic viability of projects,” says Grant Warner, AIQS chief executive officer.Warner says AIQS and other organisations representing integral components of the construction industry, have highlighted the need for further reforms in government processes to “ease construction-related costs, provide for increased productivity, and address shortcomings in the management of assets post construction”.Morrison says it’s too early to estimate the exact additional cost to taxpayers. “Builders work to specification of clients every day and if the client wants Australian materials that is what they will get.”We can only hope this amendment will not mean that government projects are wrapped in more red tape,” Morrison concludes.