The Government in mid 2004 decided to reform construction procurement so as to help achieve greater cost certainty, better value for money and more cost effective delivery of public works projects. My Department, with the assistance of the Government Contracts Committee for Construction (GCCC), specialist legal drafters and external technical expertise, has now developed a suite of Standard Forms of Construction Contract.
My officials have had extensive and constructive consultations with the construction industry over the last year on the content of the contracts. During this process, there has been very significant movement on the part of the State to help meet the industry's concerns without compromising the core policy of having fixed price lump sum contracts with appropriate risk transfer, tendered on a competitive basis as the norm for future capital works projects. Following a very useful exchange of views with representatives of the construction industry in early June, I am aware that there are a small number of outstanding concerns for the industry. It would not be appropriate for me to comment further on the details at this time. However, let me say that I have listened carefully to the industry's comments and views and I am currently reflecting on the points made with a view to finalising the contracts very shortly.
It is important that we move the process on now and prepare for the next phase of implementation, which is a comprehensive training programme for public sector practitioners, to ensure that the new arrangements are used appropriately across the public sector as soon as possible.
