Chapter 5: Improved and More Efficient Government Operations

Property and Construction

Finance manages the Australian Government’s domestic non-Defence property portfolio including office buildings, law courts, special purpose facilities, heritage properties, vacant land, and contaminated sites. The department aims to optimise the rate of return on the portfolio whilst recognising public interest considerations, the need to maintain tenant satisfaction and the need to maintain the condition of the portfolio. Finance also provides strategic whole-of-government advice at the inception stage for capital works projects and provides expert advice on the construction of major Australian Government building projects.

Commonwealth Property Management Framework

On 10 November 2008, Finance established the Commonwealth Property Review Branch to work with FMA agencies to develop a whole-of-government framework and governance arrangements to enhance their property management capability.

Finance has worked with all FMA agencies through a Deputy-Secretary level Commonwealth Property Inter-Departmental Committee, a Senior Property Officers’ Forum to which all FMA agencies are invited, and project-specific working groups of agency representatives. These forums have developed projects to improve the efficiency and effectiveness of the Commonwealth’s management of its office accommodation, including an occupational density target for office accommodation which will lead to cost savings. The Finance Minister is expected to issue Commonwealth Property Management Guidelines during 2009-10 and these will be supported by guidance and cooperative activity across agencies.

The Christmas Island Immigration Detention Centre Project

Finance’s 2007-08 Annual Report noted that the construction of the Christmas Island Immigration Detention Centre reached practical completion on 13 October 2007 and, following some further minor works, the Department of Immigration and Citizenship took possession of the centre on 7 April 2008. Finance has managed the rectification of defects during the one-year defects liability period, which was scheduled to expire on 13 October 2008. As at 30 June 2009, one defect remained in the centre and once it has been rectified final completion will be awarded to the contractor.

National Portrait Gallery

The National Portrait Gallery project was completed on-time and within budget and opened to the public on 3 December 2008. The National Portrait Gallery is a significant national cultural institution which aims to increase understanding of the Australian people’s identity, history, creativity and culture through portraiture. The department began the project in 2004 and is pleased to have contributed to the successful delivery of such an important public place. The portrait gallery was constructed in the heart of Canberra, on the shores of Lake Burley Griffin, next to the High Court of Australia and the National Gallery of Australia.

The portrait gallery has been honoured with major awards from Master Builders Australia and the Australian Institute of Architects. At the ACT Master Builders Excellence in Building Awards, the portrait gallery won four major awards including the Project of the Year. At the ACT Architecture Awards, the portrait gallery won three major awards, including the prestigious Canberra Medallion.

Commonwealth New Building Project

Finance continues to manage the delivery of the Commonwealth New Building Project, which will provide a purpose-designed and built facility in Canberra for the Australian Security Intelligence Organisation’s (ASIO’s) new central office.

Planning for the project was completed in November 2008 following a 14 month planning phase, which involved mobilising the managing contractor, establishing a dedicated high security project office, engaging the design consultants and developing the brief into a schematic design that could be used to refine the cost estimate. The delivery phase of the project, including the detailed design and construction of the building, commenced in November 2008. At 30 June 2009, the base building detailed design was 50 per cent complete and the site had been fenced off and prepared for the construction works.

During 2008-09, a number of the key planning authority approval processes for the project were completed. Although the project was exempt from scrutiny by the Parliamentary Standing Committee for Public Works, Finance and ASIO provided the Committee with a confidential briefing on 4 December 2008. On 23 April 2009, the Department of Environment, Heritage, Water and the Arts completed its review of the project’s Environment Protection and Biodiversity Conservation (EPBC) Act 1999 referral and decided the project was not one that would require approval from the Environment Minister. The National Capital Authority has provided its approval of the site establishment and early works activities.

ANZAC Park West

Finance referred the proposed fit-out and tenancy of the ANZAC Park West facility to the Parliamentary Standing Committee on Public Works in May 2009. The project aims to provide flexible and modern office space in the ANZAC Park West facility for the Department of Defence. Subject to parliamentary clearance of the project, detailed design for the fit-out and external works for the project is expected to commence in September 2009. Construction is expected to reach practical completion by the end of 2010.

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