More than 30 new and upgraded school projects and 100 new public preschools are at risk after the NSW government mysteriously terminated a major construction contract just months after signing it, while referring a former senior bureaucrat to the corruption commission.
The Manufacturing for Schools program was a $39 million, three-year contract that promised to employ modern construction techniques, with the goal of reducing the costs of new schools by up to 20 per cent and construction time by up to 30 per cent.
The contract was awarded to APP Group in February but was recently cancelled.
Former Schools Infrastructure NSW chief executive officer Anthony Manning.Credit: Janie Barrett
The former chief executive officer of Schools Infrastructure NSW, Anthony Manning, was involved in the contract process and was dismissed by the Department of Education in February. The department confirmed the CEO’s position was terminated as part of a restructure.
Senior sources with knowledge of the situation said the NSW government has since referred his involvement to the Independent Commission Against Corruption.
“I expect the highest standards of integrity and value for money for NSW taxpayers from the Department of Education,” said Education Minister Prue Car. “Any allegations that have come forward have been immediately referred to the relevant authorities.”
There is no suggestion of wrongdoing by Manning; only that he has been referred to the ICAC. An ICAC referral does not mean an investigation will follow. Manning has been contacted for comment.
The winner of the contract, APP Group, is a consortium of building contractors and manufacturers, including Lipman, Ark, MBM, WSP, Woods Bagot, Bennett and Trimble, Richard Crookes Constructions and Roberts Co.
APP Group confirmed in a statement its three-year contract to provide services to the Manufacturing for Schools Program has been terminated.
“This is a disappointing decision. The APP Group has been informed that the decision to terminate was not based on performance and it’s our understanding the NSW Department of Education has chosen to pursue a different approach to project delivery,” a spokesperson said.
APP Group won the contract through an official open tender, and it is not known what compensation, if any, has been paid as a result of the termination.
The concept behind the Manufacturing for Schools program is effectively “flatpack” schools. An incorporation of off-site manufacturing and on-site assembly of prefabricated elements, the process promised to build a new school from scratch in just 13 months compared to the current four-year timeline.
Among the new schools slated for construction were Sydney Olympic Park, Box Hill/The Gables, Jordan Springs, Gregory Hills/Gledswood Hills, Schofields/Tallawong, Leppington, and Medowie. The program also included building 100 public preschools as part of an election commitment made by the Minns government.
In a statement, the Department of Education said: “While the contract was not terminated because of an ICAC investigation, concerns have been raised on how the ... tender was undertaken for this work, and we have referred those concerns to the ICAC.”
The NSW government is expected to initiate a new tender process and seek more than one contractor. The Department of Education is confident that the promised new schools or upgrades will not be delayed or cancelled, even though it does not currently have a contractor to do the work.
The program is also supposed to rebuild schools on the North Coast damaged by floods, with Broadwater Public School south of Ballina only recently receiving approval to be rebuilt after being rendered unusable in the 2022 floods. Students and teachers have spent two years in makeshift demountable classrooms on a patch of grass in nearby Evans Head.
“I am confident that we are on track to deliver our ambitious public schools infrastructure program, including through Modern Methods of Construction delivered via the department’s usual processes,” Car said.
The department also claimed the changes would not result in any delays.