The Cook Government is taking significant steps to modernise procurement practices in Western Australia, aiming to attract major investment in state infrastructure projects. This initiative, informed by feedback from the Master Builders Association (MBA) and leading contractors, introduces a new Bid Contribution Policy specifically for non-residential major projects.
The policy is designed to enhance market capacity and competition for critical infrastructure projects, including hospitals, correctional facilities, and cultural buildings. Eligible contractors will be able to apply for financial contributions of up to $750,000 to assist with bid costs for projects valued over $100 million or those deemed high-risk or high-complexity. This initiative particularly targets strategic regional projects, recognising the significant investment required for high-quality bids.
By providing this financial support, the state government aims to incentivise contractors to commit their resources and expertise to Western Australia, ultimately creating local jobs and driving economic growth. The policy not only alleviates some of the financial burdens associated with the bidding process but also ensures that the state gains unencumbered use of the intellectual property linked to each bid.
Finance Minister Sue Ellery emphasised the importance of this initiative, stating that it is a direct result of consultations with the MBA and top-tier builders. “This aims to incentivise contractors to invest their time and future in the State while also creating local jobs,” she said. Ellery also acknowledged that the costs associated with preparing high-quality bids can be considerable and that the policy intends to partially offset these expenses. By supporting the development of complex bids, the government hopes to reduce risk and enhance the quality of proposals received.
Matthew Pollock, CEO of the Master Builders Association WA, highlighted the initiative as a critical component of MBA’s Regulatory Reform Package. He noted that offsetting bid costs for large or complex projects will encourage a broader range of contractors to participate in the bidding process, leading to greater competition and ultimately better value for taxpayers. “Greater competition will mean better bids and better value for money for taxpayers,” Pollock explained.
This initiative comes at a time when there is a record pipeline of major projects to deliver in Western Australia. By fostering collaboration between industry and government, the Cook Government aims to ensure that this pipeline is realised in the most effective manner possible.
Overall, the Bid Contribution Policy marks a significant step forward in modernising the procurement landscape in Western Australia, with the potential to drive substantial investment in vital infrastructure while supporting the growth of the local construction industry.
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