Infrastructure Procurement in a Resource Constrained Market

As urbanization drives strong infrastructure investment, many major cities are finding that the demand is becoming bigger than the local industry is geared to cater for. Phil Kajewski, Managing Director, Infrastructure, proposes four key strategies that underpin dynamic infrastructure investment.

A road at dawn

"Governments risk losing capability and capacity if the industry cannot respond effectively, or is not given the best chance to respond." Phil Kajewski, Managing Director, Infrastructure.

Urbanization is driving strong infrastructure investment, but for many major cities demand is becoming bigger than the local industry is geared to cater for.

Compounding the problem is a downsizing public sector so that infrastructure agencies lose critical capacity and capability, increasing reliance on industry to assist with project development and procurement. Governments risk losing capability and capacity if the industry cannot respond effectively, or is not given the best chance to respond.

So what's the solution? In my newly released whitepaper, I have set out four key strategies to improve infrastructure procurement and innovation in a busy market where the investment program is threatened by industry capacity. I propose that these strategies will underpin dynamic infrastructure investment and development: 

Maximize industry participation

To deliver maximum community and economic value, industry must be given the best possible chance to participate and contribute.

Minimize wasted resource and effort

Procurement needs to focus on achieving commercial tension and competitive compliance while using up the least possible amount of industry resource. Procurement processes must minimize the resource effort invested to achieve the required commercial and participation outcomes.

Encourage innovation

The quality of infrastructure in the investment program is as important as the size of the program. Better quality infrastructure provides greater return for investment. 

Act as an enabler for infrastructure providers trying to cope with increased program requirements with limited resources.

Procurement processes need to act as enabler for government organizations challenged with bringing an expanded program to market.

Without change we are entering an environment where governments risk having their infrastructure investment and projects suffering from a lack of innovation. This is not in the interest of government or the community who are both seeking maximum service outcomes from their infrastructure investment, to cater for their increasing population base, and maximize economic activity in a competitive global market.

Phil Kajewski

Managing Director of Infrastructure Ask me a question
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