Lack of strategy behind Vic build blowouts
The people in charge of Victoria's massive building pipeline lack understanding of the construction industry, contributing to a $3.8 billion cost blowout and delays, an audit has found.
The state's Auditor General Andrew Greaves examined the departments of Treasury and Finance, Transport, and Jobs, Precincts and Regions along with the Office of Projects Victoria and Major Transport Infrastructure Authority.
"The agencies have identified potentially critical resource shortages and risks. However, there are significant gaps in the information they use to assess and address these shortages and how they coordinate this work," the audit reads.
"As a result, no agency fully understands the construction industry and public sector's ability to deliver the government's pipeline, or how effective their work to mitigate resource shortages is.
"The agencies' advice to government does not consistently disclose the extent of these knowledge gaps. This reduces the reliability of their advice to the government about these risks."
There's been $111 billion invested into 155 major projects between 2021 and 2025, but during the 2019/20 and 2020/21 financial years, there was also a $3.8 billion cost blowout.
Thirty projects have been delayed, and there's a shortage of 4000 workers for the projects by 2022, the report says.
Part of the problem is the agencies continual reliance on outdated data, despite the state adding to the building pipeline.
The audit made 11 recommendations, all accepted or partially accepted by the relevant departments and offices.
Also on Thursday, independent agency Infrastructure Victoria released its 30 year plan.
Its strategy for 2021 to 2051 makes 94 recommendations worth about $100 billion
It is recommended that to keep Melbourne moving as population grows, the Victorian government reconfigure the City Loop, extend suburban train lines in Melbourne's growing outer north and west, prepare for the Outer Metropolitan Ring Road and upgrade road technology systems for smoother travel.
