In an agreement between nbn and the Australian construction industry, nbn has agreed to a new contracting model.
The performance-based contracts aim to increase significantly the quality and speed of the rollout to homes and businesses in the fixed-line footprint that will make up the vast majority of connections to the nbn network.
The terms represent a marked departure from the old commercial model which guaranteed large volumes of work to suppliers in specified states and regions regardless of performance but also placed upon them a high administrative burden and no competition for that work.
Instead, the new contracts offer flexible volume commitments, competition between delivery partners, and pricing based on outcomes rather than inputs.
nbn CEO Bill Morrow has said, “What this means is that the performance of our construction partners, the quality of their work and their adherence to safe work practices will determine how much additional work they will receive.
“We have worked closely with the industry to reduce the complexity of our contracts to make them easier to administer and to reward good work as we gear up to accelerate the rollout.”
The first of the new contracts were signed with construction partners Downer, Transfield, Visionstream, Fulton Hogan and WBHO.
Together the new contracts will cover around 4 million homes and businesses that are scheduled to be connected with Fibre to the Node, Fibre to the Building or Fibre to the Premises. Contracts with additional suppliers are also being negotiated and nearing conclusion.
nbn has a goal of ensuring that all homes, businesses and communities across Australia can access high speed broadband by 2020, including 8 million premises connected to the nbn network.