South Coast businesses will get priority when it comes to rebuilding their local communities destroyed by the summer bushfires.
As well as helping their local towns and villages, the move also gives local businesses a vital leg-up in their own recovery efforts.
A spokesperson for the NSW Disaster Recovery Office said state and federal governments were jointly covering the clean-up process.
They had set up a tendering process that gave priority to "local and regional suppliers" when it came to rebuilding infrastructure damaged by fire.
"We are committed to supporting local businesses and communities recover, including local subcontractors and suppliers in the clean-up process," the spokesperson said.
Engineering firm Laing O'Rourke has been contracted by the NSW government to oversee the first phase of recovery clean-up.
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"Laing O'Rourke is a highly respected multinational company with world-class construction expertise, the skills and equipment needed to do the job quickly, at scale and safely," the Disaster Recovery Office spokesperson said.
Lang O'Rourke Australia managing director Cathal O'Rourke confirmed they had been made aware of the government's decision to give priority to local contractors wherever possible.
"We will work with local subcontractors and regional small businesses across NSW to ensure they are engaged in the delivery of the clean-up process - providing much needed stimulus to local economies," Lang O'Rourke Australia managing director Cathal O'Rourke said.
Local businesses can register their interest via the Bushfire-affected Communities Rebuild Portal.
Keira MP Ryan Park issued a call last month for the government to focus on local businesses during the rebuild, saying it was "crucial" to use them.
"I want to see locals employed and local businesses engaged wherever possible," Mr Park said.
The news was welcomed by the Illawarra Business Chamber's executive director Adam Zarth, who had been calling for Illawarra and South Coast businesses to be involved in rebuilding their own communities.
"We've supported the calls for the preferencing of local trades in the rebuilding process, as these communities have a high proportion of sole traders and micro businesses and it's vital we keep them going while their economies recover," Mr Zarth said.
"We estimate that a total of 26,000 businesses in NSW are either directly or indirectly affected by the bushfire crisis, and the best way to keep them on their feet is to give them work."