A 10 point commitment on how to procure and manage projects in a more collaborative way
In June 2018 the NSW Government released an action plan identifying a ten point commitment to the construction sector.
Number 1 on their list was all about how to procure and manage projects in a more collaborative way. Specifically, bullet point 5 under this commitment was one which is basically the pre RFP/T engagement workshops principle which The Integral Group have been advocating in our training for a long time.
The full list of bullet points under that commitment is noted below:
- Use early market engagement to elicit industry’s views on the best choice of procurement pathway for each major project, and (where appropriate) for each works package within that project, drawing on good practice in NSW and other jurisdictions.
- Move away from a reliance on fixed price, lump sum procurement methods, and be open to collaborative contracting models like alliancing.
- Adopt expedited engagement processes like Early Contractor Involvement (ECI) where a project’s risk profile justifies it and where it saves time and resources without sacrificing value for money.
- Develop in partnership with industry, and then publish, simple guidelines which document “best practice” for each of the main procurement methods, and the circumstances in which each method is likely to be preferred.
- “Close the loop” with potential bidders once market soundings for major projects have been undertaken, including through an interactive session prior to the finalisation of tender documentation, so that prospective bidders can test and understand the rationale for procurement decisions.
- Ensure that, once awarded, contracts are managed by both parties in a professional and mutually respectful fashion.
- Use inception workshops to establish strong behavioural alignment and shared objectives between the parties soon after contract award.
Although none of the commitments were anything “new” in principle it was encouraging to see other large local governments having the same values.
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