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The NSW government will make a number of changes to steel procurement, including mandating a new Australian standard in all its infrastructure tenders, the Mercury can reveal.
In a move that’s been dubbed the biggest procurement change in the Illawarra’s history, the government will also publish the amount of Australian steel used in its projects and give $50,000 to the Australian Steel Institute.
The changes are the result of ongoing discussions with the industry, including concerns raised during a steel procurement forum in Wollongong on March 20.
Following that meeting, the state’s Minister for Finance, Services and Property, Victor Dominello, directed the government’s procurement board to report on ways to “get greater visibility on Australian steel in infrastructure projects” within 28 days.
Three weeks later, the government will announce the changes on Monday.
The reforms will see the Australian Steel Standard (AS/NZS 5131) mandated in all new government infrastructure tenders from October 1.
Any tenders published after that date would require compliance with the new standard.
The standard, developed by Standards Australia and championed by the Australian Steel Institute (ASI), aims to address concerns about the quality of structural steel used in construction work and enable fair competition between Australian and international suppliers.
Mr Dominello said the government had moved quickly to “address the very real concerns within the industry around safety and quality”.
“That is why the government has committed to supporting a level playing field through the adoption of this new standard,” he said.
The government will also give the ASI $50,000 for an independent accreditation of its steel standard compliance scheme to “ensure that industry is ready and able” to comply with the new standard, he said.
Parliamentary secretary for the Illawarra Gareth Ward said the announcement was the “largest procurement change in the history of our region” and an “enormous win” for the steel industry.
Mr Ward said the procurement standards would ensure quality and price were taken into account when steel was sourced for projects.
“What this does is provide the level playing field that the industry has been calling for,” Mr Ward said.
Andrew Pearson
Andrew grew up in the western Riverina town of Hay and has strong ties to the region. He is a former DA journo who has a passion for breaking news and has covered everything from council and politics to crime and court.
Andrew grew up in the western Riverina town of Hay and has strong ties to the region. He is a former DA journo who has a passion for breaking news and has covered everything from council and politics to crime and court.
