3.9 None of the projects reviewed had entered into construction (delivery phase) contracts prior to Parliamentary approval.
3.10 The issue of how much work (and therefore expenditure) can and should be done before the Committee referral and Parliamentary approval takes place has been raised by the Committee and within Defence on a number of occasions. The issue of public money being expended on developing a project to a stage that provides confidence in the costs was raised directly with Defence in relation to the Single LEAP Phase 2 project, and is covered in more detail in paragraph 3.30.
3.11 The completion of design documents and the preparation of tender and contract documents, related to the above issue, was also raised within Defence in 2005 regarding the RAAF Base Amberley Stage 2 project. Specifically, Defence sought advice from the project's contracted legal advisors on whether completion of design and preparation of tender (contract) documentation prior to referral to the Committee breached the requirements of the Act. A legal opinion on this matter was obtained by Defence which states:
The Public Works Committee Act 1969 (Commonwealth) (PWC Act) does not itself prohibit the preparation of design before PWC approval.