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PMLogic’s first PM Mixer of 2025 was held on February 12th and invited three panellists to speak on their experience with successful delivery of large infrastructure projects and programs; Stephen Brooks (Delivery Director at Sydney Water), Owen Hayford (Independent Strategic Infrastructure Advisor and Principal at Infralegal), and Paul Croke (Independent Consultant & Advisor for Government and Private sectors).
Key insights from our panel:
Critical factors to set up during project planning
The starting point for setting up large infrastructure projects involves discovering the why, where, how, and when. This leads to a clear definition of the problem being solved and an understanding of the project owner’s objectives. Clear intent produces clear outcomes, which is vital to determine why and if an investment should be made. This includes evaluating market capacity, capability, and interest both locally and globally. It is no longer sufficient to assess appetite for the project within the domestic market — it must be considered in a global portfolio.
Equally important is recognising the social contract with the community. Gaining community support is crucial for success; knowing who the impacted stakeholders are ensures the right investments deliver value. Additionally, setting up robust governance and involving the development team in delivery can help avoid disconnects during implementation.
Planning is an ongoing process, not a one-time event. Accept that not everything will be known from the start — or even at the end — and a continuous improvement cycle is necessary to build on what works and improve what doesn’t.
Designing the contract is a major project itself
“Most important aspect in planning phase is contract” - Owen Hayford
Once the project goals are defined, the team can determine the project scope and capture it in the contract to deliver against those objectives. The contract is crucial as it outlines the project’s path and agenda. Until signed, all prior work holds no value and must be treated as a key planning milestone.
Building performance incentives into contracts motivates project participants, encouraging them to meet or exceed expectations. Crafting an effective procurement process attracts the right bidders for the contract. Develop an evaluation methodology focused on selecting the best proposal, not just the cheapest. Ensuring the selection process is fair and transparent enables timely issue resolution and reduces project risks.
Role of sustainability in infrastructure project
The priority of sustainability in a project depends on how important sustainability is relative to other objectives like time and cost. It is the project owner’s responsibility to incentivise and encourage strategic thinking around sustainability. At the business case stage, assessing whether new infrastructure is necessary or if refurbishing existing assets could offer a more sustainable, lower-carbon alternative is essential. Having a dedicated sustainability champion can help drive these efforts forward.
Recent trends in environmentally responsible solutions focus on material choice, specifically materials that break down responsibly and avoid creating future problems. There’s also a push for modular construction that increases productivity and allows future deconstruction and material recycling.
In procurement, establishing a framework to evaluate sustainability outcomes using clear, understandable metrics helps the owner make informed decisions during the evaluation process. However, it’s important to recognise that sustainable innovation often comes at a higher cost.
Rethink contract models to enhance collaboration
Fixed-price lump sum contracts can hinder collaboration because priorities often shift from delivering on promises to maximising contract margin. This can lead to cost-cutting over value creation, reducing focus on achieving project goals.
To foster better collaboration, we need to rethink commercial arrangements embedded in contracts. By replacing lump sum contracts with pricing models that separate cost recovery from project margin, we tie contractor incentives to performance. This approach encourages value creation for the owner and stakeholders, driving collaboration and motivating contractors to exceed expectations.
To restructure contracts for mutual success, risks need to be shared rather than allocated. By ensuring everyone wins or loses together, it motivates teams to find the best solutions and optimise project outcomes moving forward.
Want to deliver large-scale infrastructure projects with clarity, collaboration, and sustainability at their core? At PMLogic, we help you set the right foundations — from strategic planning to effective governance and innovative contracting models. Let’s drive better outcomes together. 🤝
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