Australia’s federal, state and local governments can free up an estimated $2.5 billion in additional funds over the next 15 years through improved purchasing decisions and processes for professional services supporting infrastructure delivery.

A new report, Economic Benefits of Better Procurement Practices, commissioned by Consult Australia, and undertaken by Deloitte Access Economics, finds significant savings for governments just by buying smarter.

The report has found that direct savings of around 5.4% can be achieved across governments’ procurement of professional services supporting the delivery of new infrastructure, with flow-on savings estimated at up to $87 million per year.

The report identifies seven next steps to shift the direction of procurement. This includes establishing procurement teams with a mix of skills, reallocating resources to better focus on project objectives and removing contract clauses that do not stack up. The report also calls for the development and application of limited liability guidelines, verification of brief information and streamlining compliance processes. Governments should also evaluate and adapt procurement frameworks to encourage innovation.

Read the full Consult Australia media release here.

Read Economic Benefits of Better Procurement Practices here.