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The Melbourne Wholesale Fruit and Vegetable Market is being
relocated from its current site in Footscray to a new site in
Epping. The new market will cost more than double its original
cost and is expected to be open in 2014–15, six years after its
initial planned opening date.
The initial project planning and governance
arrangements for the relocation were sound. However, poor project
implementation and stakeholder management has resulted in
significant delays, cost overruns and has damaged the government’s
reputation.
A number of significant changes made during
the project, including changes in administrative responsibility,
project scope and changes to the delivery strategy, operation and
ownership of the market, have adversely affected the achievement of
its objectives.
These changes created risks for the project
that were not well managed. Specifically the business case,
governance arrangements, the project implementation plan and
project financials were not updated on a timely basis to reflect
these changes.
A number of probity matters in relation to
the trading floor procurement cast doubt on the fairness of the
procurement process. Major Projects Victoria’s practices showed an
inadequate understanding of the importance of demonstrating probity
and transparency in public sector procurement.
Furthermore, the tender only attracted one
fully costed, adequately supported, reasonably priced tender that
met Major Projects Victoria’s contractual requirements. Along with
poorly considered decisions made during the procurement process,
this is likely to result in the government paying more for the
trading floor than it should.
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