THE Western Australian government’s procurement process has been credited with achieving the best outcome for taxpayers in the controversial $16 billion Building the Education Revolution national schools construction program.
THE Western Australian government’s procurement process has been credited with achieving the best outcome for taxpayers in the controversial $16 billion Building the Education Revolution national schools construction program.
An inquiry into the BER has found that WA’s state-run program was among the most efficient in the nation and had a low level of complaints.
An interim report from the inquiry, headed by Brad Orgill, showed that WA building costs for state government schools were $2,246 per square metre, below the national average of $2,584sqm and substantially below NSW’s government schools, which cost $3,900sqm on average.
Based on a sample of the projects undertaken, WA’s efficiency was outdone only by the ACT government, the Queensland Catholic system, Tasmania’s Catholic system and NSW’s independent schools.
Of the 10,551 projects worth $14 billion represented by the inquiry, WA government schools had 1,008 projects worth $1.14 billion. By comparison the 2,366 projects in NSW cost almost $3.03 billion, or an average of around $145,000 per project.
The inquiry could not confirm the reason for the difference but suggested WA’s approach to the stimulus spending, taking a business-as-usual approach, or market conditions may have played a part.
The inquiry also noted WA adopted a very flexible approach to the spending compared to more expensive jurisdictions, taking advantage of rules that provided for up to 5 per cent of a school’s BER budget based on student numbers to be shifted.
“As a result, money was moved between schools in WA and the project ‘de-scoping’ which has been evident in some other education authorities such as NSW because of budget pressures has not occurred,” the inquiry reported.
De-scoping occurred when projects were cut back to fit the budget.
The Master Builders Association credited a large part of WA cost efficiency to the Department of Building Management and Works, which is part of the WA Department of Treasury and Finance, although it acknowledged there was some spare capacity in the commercial building industry that remains today.
Industry insiders said BMW caused uproar by rejecting the first round of tenders and requiring cheaper bids, but the contracting process and subsequent management did keep costs lower.
Early concerns about several big builders winning the contracts also dissipated as those firms sub-contracted out a significant slice of the work to smaller businesses.
There were also fewer complaints. The MBA said just seven of the national tally of 254 complaints originated from WA.
MBA construction director Kim Richardson said costs in Victoria were driven up unions, which pushed for a site allowance of $2-$3 per hour per worker not normally applicable to smaller construction sites.
