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.