Victorian government to use Regional Rail Link procurement as a 'test-case' to monitor costs

The Victorian Government will use the $5.3 billion Regional Rail Link project in Melbourne's western suburbs as a test case to contain costs on major state-run developments the government argues have blown out by billions due to a lack of control over the unions.

The government is conducting a review of the industrial relations principles that form part of the Code of Practice for the Victorian building and construction industry.

Finance Minister Robert Clark has argued the existing principles are too general and do too little to curb costs and that unions have capitalised on the lack of scrutiny.

Despite procurement of the multi-billion-dollar rail link already being under way, tenderers and their related parties will now have to amend their applications to comply with the new Victorian code which will include enabling government access to sites and documents to ensure scrutiny of the workplace. 

"These changes to the tender conditions for the Regional Rail Link will enable the government to identify which tenderer provides the lowest risk to the Victorian taxpayer at tender evaluation stage and over the life of the project," Clark said.

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