Construction projects need to stop being ‘procured’ based on the ‘lowest price’

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Construction projects need to stop being ‘procured’ based on the ‘lowest price’
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Australian Constructors Association CEO Jon Davies says construction projects need to stop being “procured” based on the “lowest price possible”.

“We’ve got to stop looking at procuring projects just based on the lowest possible price at the tender and try to pass as much risk to the contractor in the sort of mistaken belief that that’s going to absolve you of any sort

of harm further down the track,” Mr Davies told Sky News Business Editor Ross Greenwood.“If a contractor falls over, you’re left picking up the pieces, you’re left paying more money, and you’re left with a project that’s delayed.”

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