• Cost overuns
  

  While the Report acknowledges that cost overruns are often influenced by unforeseen events, it makes clear that the financial impact of those events can be significantly reduced through improved risk assessment and more effective contract negotiation.

  The Report identifies the following common contributors to budget overruns:

  • underestimating project costs
  • design changes
  • technical challenges
  • selecting the wrong supplier/contractor
  • adverse weather events
  • scope changes
  • inadequate project governance.

• Project delays
  

  In total, 21 of the 29 major projects reviewed are experiencing some form of delay.

  The most frequently cited causes include:

  • lengthy approval and negotiation processes and regulatory requirements (particularly for water and wastewater projects)
  • natural disasters and weather events
  • land transfer delays
  • supply chain disruptions
  • delays in securing funding
  • site contamination issues
  • industrial action
  • delaying tenders until construction costs have decreased.

Practical lessons and areas for improvement 

In light of these findings, the Report identifies three key areas where councils can materially improve outcomes for major capital projects:

• Robust project planning
  

  The report emphasises that strong upfront project planning is critical to managing risk, particularly where project scope or design is uncertain. Clear definition of scope, realistic cost and time estimates, and early identification of delivery risks can significantly reduce the likelihood of later contract variations and cost escalation.

• Effective contract monitoring and management
  

  Well-structured contracts alone are not enough. The Report highlights the importance of active contract monitoring and management, undertaken by appropriately skilled project managers and supported by transparent reporting. Effective contract management enables councils to respond early to contractor underperformance and to manage the impacts of unforeseen events before they escalate into major delays and cost overruns.

• Strong oversight and assurance
  

  Finally, the Report notes that robust oversight and assurance arrangements support the early identification of emerging risks and provide councils with the opportunity to intervene before delays and cost overruns become entrenched.

How Maddocks can assist 

Practical advice 

These findings reinforce the importance of disciplined project governance across the full project lifecycle. The Maddocks team regularly assists councils with:

• robust project planning, including procurement strategy, risk allocation and contract structuring
• drafting and negotiating construction and infrastructure contracts that appropriately manage risk and uncertainty
• ongoing contract monitoring and management, including advice on variations, extensions of time, performance issues and dispute avoidance.

By embedding strong planning and contract management practices from the outset and, maintaining them throughout delivery — councils can materially reduce the risks highlighted in the Audit Office’s Report and improve the likelihood of successful project outcomes.

Training and capacity uplift 

In addition to providing project‑specific advice, Maddocks can deliver tailored training for councils on the issues highlighted in the Audit Office’s Report. These sessions can be designed for executives, project sponsors and delivery teams, and focus on practical, real‑world approaches to:

• upfront project planning and risk allocation
• procurement strategy and contract negotiation
• effective contract administration, monitoring and reporting
• managing variations, delays and cost escalation
• governance, oversight and assurance for major capital projects.

Our training is grounded in current audit findings and local government practice, and is designed to build internal capability so that councils are better equipped to manage complex projects from planning through to delivery.