NBN suspension ‘a backward step

The construction industry has expressed concern at the decision by NBN Co to suspend its network construction tender.

The Executive Director of the Australian Constructors Association Jim Barrett, said the ACA is disappointed by the move.

"To date the investment by the construction industry in this project has been substantial,” Mr Barrett said.

"The tender process has been protracted and rigorous and the industry has invested tens of millions of dollars in responding to the request for proposals.

"We note the NBN advice that it was progressing 'a different approach', however it would have been much better had it sorted out its procurement strategy before engaging the industry.

"The NBN Co has suggested that the bids it received did not represent value for money. “This criticism is surprising given that the bids received were the result of a vigorously competitive tender process involving 14 bidders," Mr Barrett said.

“The National Broadband Network is an iconic project and our members remain committed to its development.

“The industry is still hopeful that NBN Co can work with contractors to deliver value for money outcomes for the public,” Mr Barrett said.