MSP Managing Director Quoted in West Australian Newspaper

MSP News

In the following article, MSP Managing Director, Peter McSweeney is quoted extensively in regard to his opinions on possible solutions to the “offshoring” of project contracts

This article is reproduced courtesy of The West Australian

Forum tries to nut out ways to win contracts

By Peter Williams

Officials from resources giants, manufacturers, engineers and unions converged on Perth yesterday in an attempt to nut out some solutions over the “offshoring” of project contracts.

Executives from Chevron Australia, Woodside Petroleum and  Xstrata as well as union leaders Paul Howes and Dave Oliver joined former Queensland premier Peter Beattie and two Federal ministers in the first get-together of a Gillard Government advisory forum.

The Government earlier in the year appointed Mr Beattie as its  resources sector supplier envoy to promote the procurement of Australian materials and services by mining and energy projects.

Mr Beattie said a working group was formed to examine ways for Australian suppliers to win work and another to make recommendations on financing growth.
The forum’s academic members were asked to prepare a document on innovation in time for the  forum’s next gathering in March.

“Everyone is saying they want practical outcomes,” Industry Minister Kim Carr said. “We will be judged over time on the number of contracts, the jobs, that are actually created for Australians. “We all know that the only way we’re going to succeed is we go at this flat-out and produce highly competitive bids for work that’s actually up for grabs at the  moment.”

Forum participant Peter McSweeney said the meeting had identified the key issues working against local content, such as offshore tendering processes, standards, specifications, liabilities and contractors’ balance sheets.

Mr McSweeney, managing director of MSP Engineering, said the Perth-based resources industry consultancy benefited from having early engagement with projects.

“We work with the clients from the study phases on contracting strategies, delivery models, risk sharing with the client,” he said.

“Unfortunately, those types of contracting levels don’t go down to subcontractors in the second level because they normally get involved at later phases of the project.

“There’s a lot of Australian content and capabilities that actually miss out on that next level.”

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Category: MSP News