Contract shift for SMEs
A new scheme should allow SMEs easier access to government contracts.
In a budget announcement this week, the Federal Government is planning to make it easier for small and medium contractors to win infrastructure, defence and other government procurement contracts.
The changes will see government departments instructed to break up major projects into smaller components so that smaller contractors can compete against larger bidders.
The changes should also reduce insurance costs for SME suppliers bidding for government work by scrapping requirements for insurance during the bid process until a contract is awarded.
“These reforms are game changers that will remove perceived barriers that may have discouraged some SMEs from participating in particular tenders, particularly where they think the cost of entry is too high,” Finance Minister Simon Birmingham said this week.
“This is all about enhancing the commercial opportunities for SMEs and allow more suppliers to offer their services for the benefit of taxpayers.
“We are also determined to give Australian contractors the maximum opportunity to win significant work by unbundling major projects in ways that maximise efficiency for taxpayers, local job opportunities and the potential growth of Aussie businesses.”