During 2013 NSW Treasury and INSW conducted a review of contingency management based on a sample of current major projects. The review highlighted opportunities to improve consistency, remove undue conservatism, improve transparency (consistent with good governance), improve capability across the whole portfolio and prevent loss of value for money in delivery.
NSW Treasury, Infrastructure NSW, Transport for NSW and Health Infrastructure worked together to develop guidelines for improving management of contingency. The Contingency Management Guidebook is based on best practice and includes examples from other jurisdictions, NSW agencies and the private sector.
The development of this leading practice guidebook provides an opportunity to build on observed good practices in the public and private sectors, and provide a framework for the optimisation of expenditure outcomes across the NSW capital portfolio.
The attachment to this circular summarises the guidebook sections relevant for the requirements of this circular.
The full guidebook can be found on the Infrastructure NSW website www.infrastructure.nsw.gov.au.