Victor Dominello MP
Minister for Finance, Services and Property

The largest procurement change in the history of our region released

The NSW Government today announced a suite of reforms to steel procurement to improve safety standards, industry certification and transparency.

Minister for Finance, Services and Property Victor Dominello and Parliamentary Secretary for the Illawarra and South Coast Gareth Ward today announced that from 1 October 2017 the NSW Government would mandate the new Australian Steel Standard (AS/NZS 5131) in all new Government infrastructure tenders.

The Standard, developed by Standards Australia, championed by the Australian Steel Institute and published in December 2016, aims to address concerns about the quality of structural steel being used in construction work and to enable fair competition between Australian and international suppliers.

“The NSW Government has moved quickly to address the very real concerns within the industry around safety and quality following the Steel Industry Summit on 20th March 2017,” Mr Dominello said.

“That is why the Government has committed to supporting a level playing field through the adoption of this new standard.

“We are also working to ensure that industry is ready and able to comply with the new standard by contributing $50,000 to the Australian Steel Institute on successful  independent accreditation of their steel standard compliance scheme.”

New Government infrastructure tenders published after 1st October 2017 will require compliance with the new standard.

Parliamentary Secretary for the Illawarra and the South Coast Gareth Ward said this was an enormous victory for the Illawarra Region.

“This announcement delivers Government procurement standards and ensures that quality as well as price are factors when governments procure steel,” he said.

“This announcement is the most significant procurement policy change in our region’s history. I promised I would take up this fight and today my words have been matched with actions that will benefit our region for years to come.

“I took up this fight because I want to see more Australian steel used in Government infrastructure projects. This policy announcement is what the industry has called for and will help support jobs in our region.    

“With the NSW Government spending around $70Billion over the next four years on infrastructure alone, I want to ensure our steel makers, manufactures and associated businesses can take advantage of the NSW Liberals and Nationals Government building boom. These changes will help do exactly that,” Mr Ward said.

The NSW Government has also announced further reform affecting Steel Procurement including:

  • Reviewing the application of a “broader economic benefit” test of using Australian versus imported suppliers to ensure fairness between local and international suppliers when considering value for money assessment;
  • Publishing the amount of Australian steel used across key NSW Government projects digitally to ensure transparency in government contracting. A dashboard is expected to be made public later this year and will be managed centrally by NSW Procurement; and
  • Reviewing the need to ensure protection for fabricators that raise concerns about steel quality directly with Government agencies.

Further information is available on the website at: