A new plan to better manage major projects and tackle cost blowouts

Liberal Party Victoria

The Victorian Liberals and Nationals will take strong action to improve the performance and transparency of Victoria’s construction sector under a new policy announced today.

In 2015, the Labor Government abolished Victoria’s Code of Practice for the Building and Construction Industry, which established expected standards of conduct for building and construction industry participants.

Since that time, major projects under Labor have suffered at least $38 billion in cost blowouts and significant delays, as regular allegations of misconduct and illegal behaviour across Victorian construction sites continue to plague the sector.

Therefore, to address misconduct within Victoria’s construction sector and rein in major project cost blowouts, a future Pesutto Liberals and Nationals Government will:

  • Reinstate a Victorian Code of Practice for the Building and Construction industry.
  • Establish Construction Enforcement Victoria, to oversee and monitor compliance with the Code.

The Code will cover issues including standards of conduct on-site, dispute settlement, fitness for work, content of enterprise agreements, prevention of sham contracting and collusive practices, prohibited conduct and ensuring rights to entry and freedom of association. The new watchdog, Construction Enforcement Victoria, will ensure the Code is implemented across major projects.

Leader of the Opposition, John Pesutto, said: “Labor cannot manage money, cannot manage projects and all Victorians are paying the price.

“Whether on the North-East Link, West Gate Tunnel or the Suburban Rail Loop, Labor’s mismanagement of major projects is adding tens of billions of dollars to Victoria’s record debt and fuelling inflationary pressures across the economy.

“That $38 billion in cost blowouts would have been better spent solving the hospital waiting list crisis, solving the housing crisis, making sure when people when ring Triple-Zero they get an ambulance and fixing the state’s roads.

“Victoria cannot afford the waste and mismanagement to continue. By setting a construction Code of Practice and establishing a new watchdog to monitor compliance, our plan will tackle cost blowouts and misconduct on Victorian major projects.”

Shadow Minister for Industrial Relations, David Hodgett, said: “Victorian taxpayers deserve value for money from their major projects.

“Every Victorian is paying the price for Labor’s mismanagement of major projects which is leading to higher costs, longer delays and continued instances of misconduct and illegal behaviour.

“Under the Code, contractors – both big and small – who stand up for lawful conduct against union demands can look forward to the full support of a Pesutto Government.

“By establishing a clear industry standard supported by a new watchdog, the Liberals and Nationals’ plan will help restore integrity to major projects and tackle the causes of blowouts to deliver better outcomes for Victorians.”

/Public Release. View in full here.