Langoulant Review into WA Major State Projects
An Inquiry led by John Langoulant, former under treasurer, into recent WA State Government projects and contracts has revealed gross incompetence and highlighted the need for a major reformation to current procurement processes.
In 2017 ACA – WA joined forces with the Australian Institute of Architects, Consult Australia and the Master Builders Association to prepare a joint submission to the Inquiry. We are pleased to advide that two of our recommendations have been endorsed in the report tabled in Parliament by the Premier on 20 February, 2018:
- The need to improve government procurement and contract management practices, with particular mention about risk management and apportionment
- The need to establish an IWA.
The Inquiry chose to directly quote from our submission, noting that:
‘at present, risk is often being allocated not according to who is best able to manage it but according to bargaining power… the use of standard, fair contracts negotiated between industry and government, with input from relevant stakeholders, will reduce the need for costly legal review or negotiations, and gives all parties the comfort of knowing that risk and reward is allocated fairly.’
The Premier, Mark McGowan, has publicly stated that his government will support the Inquiry’s recommendations. Our task at the ACA is to continue to engage with both Langoulant and the State Government to ensure these recommendations are implemented in a manner that supports a better legislative environment for practice.
The three volumes of the report, titled Special Inquiry into Government Programs and Projects, can be downloaded from the WA Public Sector Commission website.