Responding to growing demand in an area seen to undergo sweeping legislative changes, Holding Redlich has launched a dedicated procurement practice today.
Partner Scott Alden has been tasked by the national firm to lead the new group. The team includes both construction and infrastructure and corporate and commercial partners.
The rate of change in procurement trends and requirements has never been seen before in the sector, Alden said. He expects to see even more rapid change in the sector.
“We are currently awaiting and preparing for two major legislative changes that are likely to have a far-reaching impact on procurement practices. Modern slavery legislation in NSW is set to be overhauled later this year when the Modern Slavery Act 2018 (NSW) comes into effect,” he added. “A large focus of the Act is ending modern slavery-like practices in organisations and their supply chains by imposing a series of mandatory measures and setting penalties of up to $1.1m.”
Holding Redlich said that the federal government’s Government Procurement (Judicial Review) Bill 2017 sets out other significant changes to procurement practices.
“We are seeing so many changes coming through in this sector. And as well as the formal legislative reform, there is also increased pressure on business to conduct procurement using sustainable processes,” he said. “Times have changed and both public and private organisations must now be acutely aware of the consequences of choices they make regarding what to buy, how to buy it and who to buy it from.”
Procurement decisions are being increasingly made by senior management or executive team members, he added.
“These are important decisions that are now often being made at senior executive level – but navigating this area is becoming more complex and high-stakes,” he said. “As demand for advice about this area has grown, we decided it was time to set up a dedicated team.”