Poor procurement costs Australian government $239 million a year

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A new study from Deloitte Access Economics has found that poor procurement practises cost Australian governments around $239 million annually. Also, 45% of professional service firms said public sector clients were non-responsive to innovative suggestions during the tender process.

The ‘Economic benefits of better procurement practises’ report says that improving inefficient policy and practise in infrastructure procurement could add $5 billion in addition to GDP to 2030, while Western Australia could be $500 million better off.

Currently, infrastructure spending in Australia sits around $43 billion per year. However, costs for professional services contracts are approximately 5% higher due to government clients having unclear project objectives, inefficient management of risk and inappropriate project models.
PASA’s conference “Procurement’s growing role in purchasing Construction & Capital Works” will be held on 16th & 17th September, in Sydney. Click here for more details. 

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Procurement and Supply Australasia (PASA) is the leading provider of information and education to procurement and supply professionals throughout Australia and New Zealand. PASA supports the largest community of engaged procurement stakeholders in the region, through its renowned series of events, publications, awards, plus various community and network building activities. PASA is a trading name of BTTB Marketing, for many years recognised as the leading producer of conferences and events for the procurement profession in Australia and New Zealand. Whether producing under the BTTB, CIPSA Conferences or now PASA brands over the last ten years, our events have consistently led the market in terms of both educational and networking opportunities.

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