State and federal governments across Australia are currently having to deliver significant and unprecedented infrastructure programs to support regional and national economic growth and meet changing demands of residents.

This should be a win-win both for sides, and it can be by taking a more positive attitude to shared improvement and success. That requires changes in project structures, project management and supply chain collaboration – all of which can be met without upholding an ongoing confrontational contracting environment.

Terms such as, ‘driving hard bargains’, ‘contractor demands’, ‘competition’, ‘finding new contracting partners’, ‘long remote supply chains’ and ‘enforcement’ are associated with a confrontational past shown to deliver poor project outcomes. Further, low margins can lead contractors to pursue compensation in courts or exit unattractive markets altogether.

The most successful project owners are not looking to transfer risk to contractors or blaming them for poor performance. Instead, they are working to develop the most valuable projects more efficiently, using the scale of their project portfolio to collaborate with their suppliers more effectively – delivering both successful projects for the owner and suitable profit for contractors.

We see eight key requirements for realising this opportunity...