1300 273 762 | Contact Us | Sign In | Members
Formerly APESMA
Menu
  • Home
  • About
    • LGEA Committee
      • The LGEA Committee Roll of Honour
      • LGEA Distinguished Members
      • LGEA Staff
      • Close
    • Find A Delegate
    • Mission, Vision and Values Statement
    • 10 reasons to join LGEA
    • Close
  • Support & Benefits
    • General Support
      • 2017/2018 LGEA Remuneration Report
      • Workplace Advice and Support
      • Employment Contract Review
      • Recruitment Services
    • Events & Seminars
      • Videos and Presentations
    • Your Rights, Wages and Conditions
      • Your Rights and Obligations
      • LGEA Award
      • National Employment Standards
    • Close
  • News & Views
    • Career Guides
    • Industry Briefings
    • LGEA Update
    • Campaigns
    • Submissions
    • Close
  • RPEng
    • Visit RPEng Website
    • Close
  • Join Now
  • Contact

Engineering, not rocket-science will fix infrastructure waste

  • Home
  • Latest News
  • Engineers
  • Engineering, not rocket-science will fix infrastructure waste

Engineering, not rocket-science will fix infrastructure waste

October 25, 2016 in Engineers, Latest News, Media Release 0
Engineering, not rocket-science will fix infrastructure waste

Over the past fifteen years, Australians have paid $28 billion more than they budgeted for on transport infrastructure because of government reliance on outsourced advice.

The Grattan Institute’s report, Cost overruns in transport infrastructure, reviewed 836 infrastructure projects valued at over $20 million and concluded that infrastructure decisions based on politics instead of public good lead to extreme levels of waste.

Professionals Australia commends the Institute on its report, adding that this level of waste is also the result of substantial outsourcing that has diminished governments’ ability to make smart and informed decisions.

“Taking the politics out of infrastructure decision-making isn’t rocket-science, it’s engineering,” said Professionals Australia CEO Chris Walton.

“Governments can win votes and build critical infrastructure without waste, but they must rely on long-term planning and comprehensive analyses by experts including professional engineers.

“By cutting engineering capacity over the last 20 years and relying more and more on contractors, Governments have effectively outsourced their purchasing capacity without retaining enough expert knowledge to know what they are paying for. Now we’re seeing the consequences to the tune of $28 billion.”

The report shows that over the past 15 years, 74 per cent of the total value of cost overruns is explained by the 32 per cent of projects announced early.

“Politicians need to stop turning to ribbon-cutting to save their skins. They’re listening to accountants who provide a budget figure and they’re running with it, but accountants aren’t experts in scoping infrastructure. That takes technical knowledge and experience. They should be listening to professional engineers.”

“This kind of margin, $28 billion, is more than the total cost of the first stage of WestConnex, the Sydney Light Rail, and the NSW M1 & M2 link combined. It’s money that could be going toward schools and hospitals.”

Professionals Australia’s 2016 report examining waste in the infrastructure lifecycle, Better Infrastructure, identifies the average cost-blow out for all infrastructure projects is 6.5 per cent, but increases to 21.2 per cent when the number of projects increases.  The report also notes the Productivity Commission’s estimate that a lack of engineering capacity in the workforce is costing governments $6.2 billion per annum.

The report will be updated to include the Grattan Institute’s new figures.

Share with your friends:
Tweet
Winner of our 2016 LGEA Council Employer of Choice Award! Log of Claims for the Local Government (State) Award 2017

Latest News

  • Engineer Registration Campaign Update

    Engineer Registration Campaign Update

    February 7, 2019
  • Postcard Campaign

    Postcard Campaign

    January 17, 2019
  • Visit your MP

    Visit your MP

    December 19, 2018

Campaigns

infrastructure-promo

Member Savings

member-benefits

RPEng

promo

Quick Links

  • Home
  • About
  • Campaigns
  • Financial Edge
  • Advocacy
  • Latest News

Support

  • Workplace Advice and Support
  • Employment Contract Review
  • Recruitment Services
  • Career Progression
  • Industry Briefings

Latest News

  • Engineer Registration Campaign Update
  • Postcard Campaign
  • Visit your MP

Contact Details

  • Level 1, 491 Kent Street Sydney NSW 2000, Australia
  • 02 9263 6555
  • lgea@ProfessionalsAustralia.org.au
  • www.lgea.org.au
© 2019 Professionals Australia LGEA. All Rights Reserved. ABN: 99 589 872 974
  • Copyright
  • Privacy
  • Disclaimer
  • Advertise
  • Sitemap

Divisions and Groups

  • Professionals Australia Home
  • Engineers
  • LGEA
  • Scientists
  • Pharmacists
  • Collieries
  • Architects
  • Managers
  • Information Technology

Divisions and Groups

  • Medical Research Institutes
  • Contractors & Consultants
  • Translators & Interpreters
  • Ambulance Managers & Professionals
  • Young Professionals
  • Students
  • Gender & Diversity
  • Transport
  • Australian Government

Member Login

Members Login Here

Member Benefits

promo
Find out more about RPEng