By Tom Gellibrand, Chief Executive of Infrastructure NSW
As New South Wales confronts an emerging housing crisis, effective relationships between government and the construction industry are paramount.
As Chief Executive of Infrastructure NSW, I understand the immense pressures facing our construction industry, from supply chain issues and worker shortages to financial challenges and rising costs. Amidst these challenges, there are great opportunities as the investments in infrastructure are the greatest the New South Wales Government has ever seen.
Our new Principles for Partnership with the Construction Industry (Principles), represents a crucial platform for industry and government to address current challenges and leverage opportunities to deliver an ambitious program of infrastructure to support new homes close to jobs, services and transport.
The Principles is a refresh of the 10-Point Commitment to the Construction Industry, released in 2018. Significant progress has been made since this time, and new challenges and priorities require a re-look at the way the New South Wales Government works with the construction industry.
Beyond this, the Principles include important social objectives achievable through the New South Wales Government infrastructure pipeline, supporting our heavy investment in infrastructure, housing supply and renewable energy.
The new policy emphasises collaboration across the construction sector to deliver high-quality infrastructure. Developed by the Construction Leadership Group, the Principles align efforts to deliver the New South Wales Government $119.4 billion infrastructure pipeline.
Last year we invited industry stakeholders to roundtable discussions to gather feedback on a refreshed policy approach. These sessions included peak bodies, contractors, unions, and consultants, ensuring diverse perspectives. This extensive consultation underscores our commitment to collaboratively addressing challenges and driving improvements in the way government and the construction industry work together.
The Principles are complemented by the NSW Women in Construction Program, now entering its third year, and the recent NSW Decarbonising Infrastructure Delivery Policy and Measurement Guidance, which focuses on measuring and reducing carbon emissions associated with infrastructure delivery.
The Principles which include specific actions and commitments between government and industry, are:
Build up domestic manufacturing
The New South Wales Government is dedicated to strengthening local industry skills and manufacturing capabilities. Key initiatives towards achieving this include establishing the Jobs First Commission and Future Jobs and Investment Authority, creating a flexible procurement framework, mandating tender weightings, expanding the Industry Capability Network, and providing local workforce opportunities. These measures will enhance participation from local businesses and support the government’s housing objectives.
Our aim is to collaborate early to support modern construction and local industry. The New South Wales Government commits to signalling early local manufacturing opportunities, piloting new approaches with industry, boosting local content, jobs, and small business engagement, and investing in local manufacturing skills and capacity. We ask our industry partners to align with these priorities by optimising local outcomes within projects and to partner with local suppliers where possible to cultivate local industries and businesses.
Ensure safety and wellbeing
The construction industry is high-risk, traditionally marked by an adversarial culture posing significant health and wellbeing risks. Addressing safety, risks and psychosocial hazards is essential. The New South Wales Government is promoting positive change, focusing on safety and wellbeing to ensure a safe and inclusive construction sector.
Our goal is to prioritise worker health, safety, and wellbeing, and promote good mental health in a stigma-free environment. The New South Wales Government is committed to modelling safe behaviour, advocating for improved safety and culture, updating WHS guidelines, and recognising high-performing contractors. We ask our industry partners to propose innovative safety ideas, advise on avoidable risks and ensure subcontractors meet updated standards.
Boost productivity
Productivity in the construction sector has lagged that of other industries for decades and is arguably in decline. Improving worker capability through upskilling in digital and efficient processes is crucial. Immediate opportunities include standardising key government procurement and design processes, improving early market interactions, encouraging innovation, and adopting digital practices. To support these efforts, three new Guidance Notes have been published to promote early market engagement, transparency in tender processes, and effective post-tender debriefs.
Our aim is to publish standardised data, accelerate digital practices, and collaborate on data management. The New South Wales Government is working to enhance tender processes, involving industry early in design, streamlining project specifications, and updating GC21 contracts. We ask our industry partners to engage in early market engagement, propose innovative solutions, digitalise practices and collaborate with local suppliers.
Invest in skills and local jobs
Building a skilled workforce is crucial for reliable infrastructure delivery. To meet the workforce demands of investment in infrastructure, housing and renewable energy, we need to invest in skill development and collaborate with industry to attract and retain talent.
We invite our industry partners to upskill the workforce, provide opportunities for diverse and underrepresented groups, and increase local employment on infrastructure projects. The NSW Skills Plan has identified the need for enhancing skills in the construction industry, implementing programs to improve diversity outcomes, and ensuring high-quality training.
Enhance industry culture and diversity
Increasing the proportion of women and underrepresented groups in construction is crucial to cultivate a more innovative and productive workforce. The New South Wales Government is leveraging its procurement power to ensure contractors introduce improvements to promote a healthy culture and diversity in the industry.
The latest survey results from our Women in Construction program highlight significant progress as well as ongoing challenges. The number of women entering the industry has risen by 12.5 per cent in the past year, with women now making up 20 per cent of the construction workforce, however, there is still a lot of work to be done. The New South Wales Government is committed to ensuring contractors introduce flexible workplace policies and develop mentoring programs to support women’s long-term success and retention in the industry.
Improve financial sustainability
We recognise the financial pressures on contractors. The New South Wales Government is committed to achieving value for money and delivering quality projects on time and on budget. By working together, we can identify and mitigate financial risks throughout the project lifecycle.
Financial sustainability is essential for an effective construction industry, and we are committed to collaborative risk allocation and resolving commercial issues promptly. We ask industry partners to innovate for financial sustainability, provide detailed information to enable financial capacity assessments, and ensure timely subcontractor payments.
Decarbonise to meet net zero targets
In April 2024, Infrastructure NSW introduced the NSW Decarbonising Infrastructure Delivery Policy for major government projects, focusing on reducing carbon emissions during material production and construction. The policy mandates consistent carbon measurement across project stages and aligns with New South Wales guidelines.
We ask our industry partners to focus on carbon considerations, engage on carbon measurement, and prepare for climate-related financial disclosure.
Conclusion
The Principles for Partnership, Women in Construction program and NSW Decarbonising Infrastructure Delivery Policy and Measurement Guidance are all about creating a sustainable, inclusive, safe and efficient construction industry to capitalise on the opportunities offered by a thriving infrastructure boom.
By embracing these policy initiatives, we can build a stronger, more resilient infrastructure sector for the benefit of everyone. Let’s work together to turn these priorities into practice, ensuring New South Wales remains at the forefront of infrastructure innovation and excellence.
