Starting the work and entry into contacts

3.30  The three PPP projects had, or will have, the contracts for construction commencement signed after the Parliamentary expediency motion. During the referral of the Single LEAP Phase 2 project the Committee was concerned that Defence may have been in breach of the Act for financial commitments entered into for project development prior to Parliamentary approval of the project. The issue of what constitutes 'work' and whether financial commitments for development breach the requirements of the Act was considered at length by Defence and Finance staff. In early 2007 Finance requested advice from the Australian Government Solicitor on the meaning of the word 'work' under the Act. The advice from the Australian Government Solicitor was that there is a reasonable argument that pre-construction costs, including design, preliminary studies, plans and detailed business case preparation, was not, in relation to the Single LEAP Phase 2 PPP project, 'work' under the Act.