Innovation is an area where an increased focus on project outcomes by governments will improve both industry relationships and how projects are delivered.
Innovation is often cited as a reason to select a particular contracting model and is included in most infrastructure tenders as an assessment criterion. However, government demands on industry to innovate are undefined and unbounded, so the sector is not progressing as it should.82
Industry innovation should be better supported by governments.
Firstly, infrastructure procuring departments and agencies, and project teams can establish a clear direction for innovation within the organisation. Without this, there can be no meaningful basis for industry and bidder responses. Secondly, innovation will only be passed from project to project if governments ensure previously successful innovations are redeployed and successes are shared.
" Government demands on industry to innovate are undefined and unbounded, so the sector isn't progressing as it should. "
Two key areas for immediate uptake to support innovation are modern methods of construction, as discussed in Reform 3.1 of this chapter, and using digital tools, systems, and approaches, which is discussed in Reform 3.3.