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Improving procurement to lift construction productivity

Improving procurement to lift construction productivity

The Australian Constructors Association is driving reform to simplify procurement, cut delays and unlock productivity across the construction industry.

By Jon Davies, CEO of the Australian Constructors Association.

It’s no secret that Australia’s construction industry is under pressure to deliver more with less. But one of the biggest drains on productivity isn’t happening on site; it’s happening before construction begins.

Jon Davies, CEO of the Australian Constructors Association. (Image: Australian Constructors Association)
Jon Davies, CEO of the Australian Constructors Association. (Image: Australian Constructors Association)

Procurement for large projects has become increasingly slow, complex and costly. The process can now take many months, sometimes years, and require significant resources from both clients and contractors. This creates unnecessary delays and diverts time and money that could be better invested in delivering quality outcomes.

Several factors contribute to these inefficiencies. Inconsistent prequalification and expression-of-interest (EOI) processes create duplication and additional work before tendering begins. Expanding documentation requirements, coupled with poor-quality client briefs and bespoke contracts, add further complexity and cost. Extended evaluation periods then keep project teams on standby, tying up skills and capability that could be used more productively elsewhere.

These challenges represent an opportunity to improve how projects are brought to market. Streamlining procurement can save time, reduce costs and unlock innovation, resulting in benefits that flow to both clients and contractors.

The Australian Constructors Association (ACA) is leading work to find a better way forward. The focus is not on creating more process, but on simplifying and improving what already exists – making procurement faster, fairer and more transparent.

Over the coming months, the ACA will:

  1. Identify drivers of inefficiency – The ACA will draw on data and experiences from its member companies to pinpoint where inefficiencies occur. Case studies and evidence will be compiled to highlight common pain points and quantify the cost of poor procurement practices.
  1. Define best practice principles – Using this evidence, the ACA will identify what good procurement looks like in practice. Through member input and a review of both local and international research, the ACA will develop a clear, evidence-based set of best practice principles. These principles will address both horizontal and vertical construction sectors, recognising that different approaches may be needed to improve design review and procurement efficiency across project types.
  1. Promote adoption through engagement – The final step is to turn principles into action. The ACA will work closely with government and client bodies to promote adoption of these best practice standards. A targeted advocacy approach will be developed to encourage implementation across jurisdictions.

This work complements national initiatives such as the National Construction Industry Forum’s Future of Construction Blueprint and the National Construction Strategy, both of which aim to lift productivity by improving procurement efficiency.

Procurement reform is one of the most effective ways to strengthen Australia’s construction industry. By focusing on what works and removing unnecessary barriers, we can deliver projects more efficiently, freeing up time, talent and investment to build the infrastructure Australia needs.

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