Mandatory Australian Industry Participation plans a step closer for $500M+ projects
15 May 2013: The Government recently announced its plan to mandate Australian Industry Participation (AIP) Plans for all public and private major projects (i.e. projects to establish, expand, improve or upgrade an eligible facility, involving capital expenditure of $500 million or more).
AIP Plans are intended to ensure that Australian entities have full, fair and reasonable opportunity to bid for the supply of goods and services for major projects, and for the supply of goods and services for the initial operational phase (i.e. two years) of any new facility that is established as part of the major project.
The Australian Jobs Bill 2013 was introduced into the House of Representatives on 15 May 2013. Click to view the Bill and explanatory memorandum.
Under the Bill, major project proponents would be required, at the earliest possible stage of the project, to submit an appropriately detailed AIP for evaluation by the agency administering the legislation, and then to later report on its implementation. Major projects in all sectors would be affected, unlike the sector-specific application of the AIP requirements imposed by the Enhanced Project By-law Scheme.
It is currently anticipated that the provisions of the Bill, if passed, would take effect from 1 January 2014.
From our experience with the preparation of and ongoing obligations relating to AIP Plans under the Enhanced Project By-law Scheme, major project proponents should not underestimate the significance or resource commitment of being required to submit and report on an AIP Plan.
For further information about the Bill or to discuss the impact of being required to have an AIP Plan, please contact:
Tel: +61 2 6263 7059
Tel: +61 3 9671 7518