NBN Co has indefinitely suspended its network construction tender after construction companies were unable to provide acceptable terms and prices following four rounds of pricing negotiations.

NBN Co Head of Corporate Services, Kevin Brown said the NBN would be built, but not at any price.

“We have thoroughly benchmarked our project against similar engineering and civil works projects in Australia and overseas and we will not proceed on the basis of prices we are currently being offered.

“NBN Co is confident it can secure better value for money by going a different route. We have left the option open to continue negotiations at a later stage.

Mr Brown said the company was taking “a different approach that we think will produce a better result”.

“The new approach will take into account recent supply chain arrangements, volume certainty, a gainshare for continuous improvement, and involve a national construction footprint. The aim of these changes is to improve our capacity to accelerate the rollout in anticipation of a definitive agreement with Telstra,” said Mr Brown.

NBN Co commenced the tender process with a call for request for capability statements 12 months ago that attracted 45 potential suppliers. This was narrowed down to 14 companies and joint ventures that proceeded to the request for proposals. The 14 companies are:

 

  • Communications & Fibre, a division of Cut and Fill Pty Ltd
  • Connect X Joint Venture (Abigroup Telco & Energy a division of Abigroup Contractors Pty Limited and UGL Infrastructure Pty Ltd)
  • ETSA Utilities
  • Jemena Asset Management
  • John Holland Pty Ltd and Conneq Infrastructure Services (Australia) Pty Ltd Joint Venture
  • McConnell Dowell Constructors (Aust) Pty. Ltd.
  • Monadelphous and Instalaciones Inabensa Pty Ltd Joint Venture
  • Powercor Network Services
  • Silcar Pty Limited
  • Syntheo Joint Venture (Service Stream Holdings Pty Ltd and Bovis Lend Lease Pty Limited)
  • Telstra Corporation Limited
  • Transfield Services (Australia) Pty Ltd
  • Visionstream Australia Pty LTD
  • Downer Kordia Tenix Joint Venture (Downer Edi Engineering Pty Ltd, Tenix Australia Pty Ltd and Kordia Solutions Pty Limited)