The days of billion-dollar cost blowouts and lengthy delays marring defence acquisitions are a thing of the past, Defence Minister Marise Payne says, following a sweeping overhaul of procurement practices for big military projects.

Amid concerns that the Turnbull government's $89 billion shipbuilding program could run over budget, Payne told The Australian Financial Review the Defence Department now had a stronger focus on minimising risk with acquisitions by outlining a schedule and indicative funding for projects, greater examination of a project's full life cycle cost and much closer engagement with industry.