Change to NBN construction contracts announced

Posted by Design & Construct on 13-Jun-2015 00:24:44

In Construction

There is no doubt that the national broadband network (NBN) rollout has been a significant boost to many construction businesses across the country. However, for new construction firms looking to get in on the action, the opportunities have been rather limited due to the contract


In the current commercial model, various businesses have been guaranteed huge volumes of work in different states and regions. Additionally, these contracts were not based on performance meaning that firms that produced poor standards of work could continue to take home the benefits.

Essentially, there was no competition and each contract had a high administrative burden which reduced new players to the market.

Essentially, there was no competition and each contract had a high administrative burden which reduced new players to the market.

It is then pleasing to note a recent announcement from the NBN Co. In a June 10 media statement, the company said new performance-based contracts will be introduced - designed to offer more competition between construction businesses and more flexible volume loads.

The NBN Co also hopes that this will improve the rollout speed to Australian homes and businesses as the project marches on.

NBN CO CEO Bill Morrow explained that construction businesses that perform up to standard will be rewarded under the new contract scheme.

"What this means is that the performance of our construction partners, the quality of their work and their adherence to safe work practices will determine how much additional work they will receive," he said.

"We have worked closely with the industry to reduce the complexity of our contracts to make them easier to administer and to reward good work as we gear up to accelerate the rollout."

The nbn contracts will provide more transparency to the process.The NBN contracts will provide more transparency to the process.

NBN progress

By 2020, the NBN hopes to ensure that all homes, businesses and communities around the country are able to access high speed internet. This is over 8 million premises in total with recent estimates from CIO Magazine suggesting that at least 899,000 are able to be connected to the network.

New contracts and opportunities

Since 2010, the NBN has provided thousands of contracts and opportunities to businesses across Australia. As the rollout continues and the NBN is tougher on standards, the number of contracts offered is only likely to increase.

As such, construction businesses must prepare themselves with the right people and processes to get amongst the action. At Design & Construct, we are closely watching progress of this project and are committed to helping businesses reach their recruitment goals.

For more information about finding quality candidates, contact our expert team today.

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