Telecommunications
NBN Co issues call to head contractors
NBN Co has given its strongest indication so far as to how the NBN will be built through the release of a Request for Capability Statement (RCS) for design and construction of a fibre access network.
An RCS is a preliminary stage in a tender process and allows NBN Co to identify companies which have the experience, technical capabilities and financial stability to undertake a large scale project of this kind. Once the responses to the RCS have been assessed, NBN Co will issue the tender (a Request for Proposals) in the second half of the year.
The RCS documents indicate that NBN Co intends to play a minimal role in the detailed design and construction of the NBN and probably also in its future installation and maintenance operations. This work will be done largely by lead contracting companies and their sub-contractors.
It can be expected that there will be several companies (say 3-5) eventually chosen to act as lead contractors, with each being allotted an area or number of areas, along the lines of Telstra’s current contracting arrangements. There is a yet no indication of whether Telstra will tender for any of this work.
NBN Co has indicated that it intends to build up an internal project management team. It will also employ some 500+ staff at its network operations centre. But all the signs are that its strategy will be to minimise direct employment through a mixture of automation and outsourcing.
The prospect of the NBN being built and maintained largely through contractors and sub-contractors obviously raises questions about working conditions on the project, especially as a number of different companies will be involved . The CEPU has begun consultations with several companies likely to be involved in the project with a view to securing Enterprise Agreements which protect conditions in the industry.