New transport tender process to deliver projects cheaper, on-time

A new price range tendering process will be implemented by the Queensland government for transport infrastructure projects in an effort to prevent costs blowouts.

Queensland Minister for Transport and Main Roads Brent Mickelberg. ‘We’ll say that we expect for this project to be delivered at a particular time frame, that we expect it to be in this price range.’ Picture: Liam Kidston

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A new price range tendering process will be implemented by the Queensland government across its transport infrastructure projects in an effort to drive down costs and prevent blowouts.

Transport Minister Brent Mickelberg said all upcoming projects announced as part of the Queensland Transport and Roads Investment Program (QTRIP) would be offered to builders with a price range rather than a set government-funded ­figure to encourage greater ­competition with tender pricing and creative ways to deliver each job.

The decision follows an independent review which identified project timeline problems and costs blowouts across the ­program.

“What we are seeking to do with these changes is, one, engage in a more constructive way with industry and clearly articulate when we expect projects to be ­delivered and commenced, and two, ensure that we introduce that competitive tension when it comes to the actual bid price on some of these projects,” Mr Mickelberg said.

“We’ll say that we expect for this project to be delivered at a particular time frame, that we expect it to be in this price range.

“That is all about ensuring that they (builders) can … schedule their work, and … we get as many people bidding for these projects as possible.”

However, he acknowledged that it was impossible to remove the risk of cost blowouts entirely.

Mr Mickelberg also announced an additional $603m in 50-50 state-federal funding would be allocated towards the ongoing Logan and Gold Coast Faster Rail project in the Crisafulli government’s first budget next week. The independent review found the cost of the major project had already grown from $2.6bn to $5.7bn.

When complete, a dozen express services will be able to run from the Gold Coast to Brisbane every hour, which Mr Mickelberg said would be important for the 2032 regional Olympic plan.