Australia's governments can create a more attractive infrastructure market and drive the cultural changes by reforming procurement practices. A focus must be maintaining global competitiveness to ensure the sector remains attractive to foreign organisations and investment.
Despite wholesale changes in international practices, commercial arrangements in Australia's infrastructure sector have remained relatively unchanged over recent decades. Many other countries are increasingly acknowledging the role of infrastructure delivery, focusing more on market stability, and driving towards a more collaborative operating environment.61
This disconnect is particularly problematic for firms operating in the global infrastructure delivery market.
Organisations participating in the sector, both domestic and international, are increasingly likely to look for opportunities elsewhere if local infrastructure projects and contracts are comparatively risky, or offer lower and less predictable margins than other countries.62
Governments can ensure Australia's infrastructure sector is a more attractive and productive environment through commercial reforms that attract international investment. These should address industry pinch points and be developed collaboratively, with a commitment to shared objectives.
Governments and taxpayers will also benefit from commercial reform. It will enhance individual project outcomes and increase Australia's capacity to deliver more infrastructure in the future through a sustainable and thriving industry.