Audit conclusion

There has been substantial progress towards implementing the SBDC recommendations.

BMW has addressed all 13 of its SBDC recommendations. The Building Commission has addressed the recommendation that it review the Construction Contracts Act 2004 (CCA) and the first of 2 proposed packages of change to the legislation have been passed by Parliament.

Treasury and Housing have improved many of their processes since the release of the SBDC report, though both require greater consistency and thoroughness in their pre-award assessments of financial capacity. Both agencies also need to improve the identification and documentation of strategies needed to mitigate the risk of contractors not completing the work.

All agencies generally have adequate procedures to ensure compliance with the Building and Construction Industry Training Fund and Levy Collection Act 1990. But, we saw scope for the Building and Construction Industry Training Fund (BCITF) to improve liaison with agencies to ensure easy identification of government projects in its system.



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