Contracting

The practice of public sector contracting has a long history in Australia. The analysis of the experience of one agency, the Queensland Housing Commission (QHC), highlights the role of market conditions in shaping outcomes. The building industry had been severely disrupted by World War II and the demand for accommodation far exceeded supply. The QHC found it difficult to secure the services of builders and was forced to move away from competitive tendering. In these circumstances, it was forced to depend on the contract to protect its interests. However, the contracts between the QHC and its contractors did not accommodate all contingencies and failure carried economic and political costs for the Queensland Government

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