Inside the nbn’s new construction contracts

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nbn’s construction contracts with its delivery partners aim to extend the National Broadband Network’s fixed-line footprint to another 4 million premises. These contracts are based on a revised Multi-technology Integrated Master Agreement, involving simplified performance-based contracts intended to reduce administrative overheads, enhance competition, enable flexibility and incentivise a faster, more effective NBN rollout.

Utility took the opportunity to speak with spokespeople from nbn and some of its construction partners to learn more about the new contracting arrangements and what they mean for the project as a whole.

The first agreements signed under the new contracting model were between nbn and rollout partners Transfield, Downer, Visionstream, Silcar, Fulton Hogan and WBHO.

nbn CEO Bill Morrow said that the renegotiated contracts were a vital factor in allowing the company to schedule such a large volume of construction to begin over the next 18 months, which he described as an “important step toward reaching our goal of connecting eight million premises to the nbn™ network by 2020”.

Downer signed a five-year contract with nbn valued at approximately $100million in the first year.

“The value of the contract in subsequent years will depend on the volumes allocated by nbn as the rollout continues under the Multi-technology Integrated Master Agreement (MIMA),” said a spokesperson for Downer. “In the first year of the MIMA rollout, Downer is forecast to make the NBN available to approximately 144,000 premises in Queensland, New South Wales and Western Australia. This is in addition to the work volumes on hand under the previous contracting model.”

An nbn spokesperson told Utility that the company’s industry management team worked closely with all stakeholders across the industry on the new contracts, spending many months to ensure the terms instill the principles of competition and flexibility.

This is an extract from an article to be published in the August edition of Utility. Subscribe now to stay on top of all the latest utility industry news.

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