NBN Builders On Notice As Morrow Toughens Contracts
NBN CEO Bill Morrow said the new contracts would streamline the rollout, set to be completed by 2020.
Morrow said the performance-based contracts aim to increase the quality and speed of the rollout to homes and businesses in the fixed-line footprint.
The terms represent a marked departure from the old commercial model which guaranteed large volumes of work to suppliers in specified states and regions, regardless of performance.
Instead, Morrow said the new contracts offer flexible volume commitments, competition between delivery partners, and pricing based on outcomes rather than inputs.
After signing the first of the new contracts yesterday, Morrow said that safeguards will include random spot checks and monitoring of reports by end-users getting connected to the network.
“What this means is that the performance of our construction partners, the quality of their work and their adherence to safe work practices will determine how much additional work they will receive,” he said.
“We have worked closely with the industry to reduce the complexity of our contracts to make them easier to administer and to reward good work as we gear up to accelerate the rollout.”
The first of the new contracts were signed with construction partners Downer, Transfield, Visionstream, Fulton Hogan and WBHO.