Esg@2x

Third-Party Cyber Risk: The Governance Issue Hiding in Plain Sight

A recent Queensland Audit Office (QAO) report is a timely warning for councils, government-owned entities and public sector agencies: one of the most significant cyber risks may not sit inside your organisation at all, it may sit with your suppliers, vendors, consultants and service providers.

Modern organisations increasingly rely on third parties to deliver IT systems, digital services, software platforms and operational support. That creates efficiency, but it also creates exposure.

The QAO found that the audited entities were not effectively managing third-party cyber security risk, and that weaknesses in access controls, procurement practices and contracts created real vulnerabilities. In testing, the auditors were able to obtain passwords, access systems and extract sensitive information beyond what a third-party user should have been able to access. In two cases, they were able to gain administrator-level access.

That should be a wake-up call.

Importantly, these risks are no longer emerging or hypothetical. They are well understood, documented and repeatedly identified in public sector audits and guidance.

As a result, expectations on organisations, particularly councils and government entities, to identify, assess and actively manage third-party cyber risk are increasing. This is not just a technical issue, but one of governance, accountability and risk ownership.

This is not just an IT issue

Third-party cyber risk sits across:

  • IT and cyber security
  • procurement
  • contract management
  • risk and assurance
  • governance and executive oversight

That is why it is often missed.

Many organisations focus on internal cyber controls, but far fewer are asking the harder questions:

  • Which suppliers actually have access to our systems or sensitive data?
  • Have we properly assessed the cyber risk during procurement?
  • Do our contracts contain the right cyber obligations?
  • Are we actively monitoring supplier risk after contract award?

Contracts are often the weak point

One of the most striking findings in the report was contractual weakness.

Of the 36 contracts reviewed:

  • only 2 required third parties to report cyber incidents or vulnerabilities;
  • very few included audit rights; and
  • none included security requirements for the third party’s own suppliers.

That means many entities may be carrying supply chain cyber risk without any real contractual visibility or control.

What organisations should be doing now

The QAO’s better practice checklist is a useful starting point. In practical terms, organisations should be reviewing whether they are:

  • properly identifying which third parties present cyber risk;
  • conducting meaningful cyber due diligence during procurement;
  • including clear cyber obligations in contracts;
  • monitoring third-party risk throughout the contract lifecycle; and
  • ensuring access controls, logging and monitoring are robust for third-party users.

The report also highlights the importance of moving beyond contracting to active contract management.

In practice, this may involve establishing a structured approach to managing third-party cyber risk across the contract lifecycle, including clearly documenting security expectations, conducting periodic supplier reviews or assurance checks, monitoring ongoing risk exposure, and ensuring there are internal processes and capability to respond to cyber incidents and evolving threats.

A practical next step may be to consider whether a more structured contract management approach is needed to manage third-party cyber risk.

This could include:

  • clearly documenting security expectations for suppliers
  • ensuring appropriate contractual obligations (e.g. incident reporting)
  • ongoing monitoring of third-party cyber risks and controls
  • ensuring staff capability to manage these risks
  • periodic (e.g. annual) supplier reviews of IT security controls

The real takeaway

Third-party cyber risk is no longer a niche technical issue. It is now a procurement, contract, governance and operational resilience issue.

For councils and public entities, the real question is not whether this risk exists in your supply chain.

It is whether your organisation has the procurement settings, contract protections and governance discipline to manage it properly.

Organisations should now be actively testing whether their current frameworks are sufficient to manage this risk.

How Muscat Tanzer can help

We help councils and government entities build practical frameworks to manage these risks through procurement planning, cyber risk allocation, contract drafting, governance settings and contract management uplift.

 

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Paul Muscat

Director
Muscat Tanzer

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Lucy Edwards

Associate
Muscat Tanzer

Agile Procurement@2x

Cost Escalation is Back – Are your contracts Ready?

Cost Escalation is Back — Are Your Contracts Ready?

The recent escalation of conflict in the Middle East is already having tangible, real-time impacts on Australia’s construction sector.

Fuel prices are rising. Oil markets are volatile.
Transport and logistics costs are increasing rapidly.

As always, these pressures are flowing directly into construction.

Contractors and suppliers are beginning to claim price increases, driven by fuel, freight and energy inputs. Materials are becoming more expensive to produce, more expensive to move, and less predictable to price.

This is not a hypothetical future risk. It is happening now.

Recent movements in global oil markets are already translating into domestic price pressure. Australian fuel prices have risen sharply in recent weeks, with ongoing volatility expected as geopolitical tensions continue to impact shipping routes and energy supply chains.

These conditions are already feeding into contractor pricing and supplier cost adjustments. Key indicators to monitor over the coming months include contractor tender behaviour and the frequency of escalation-related claims.

From Stability to Volatility, Again

For much of 2024 and early 2025, there was a sense that the worst of construction cost escalation had passed.

Markets had stabilised. Supply chains had improved.

Pricing had become more predictable. That assumption is now being tested.

The current environment is not just about rising costs; it is about renewed volatility, and that presents a different, more complex risk profile.

Projects that appeared commercially stable even a month ago may now be exposed to rapid input cost fluctuations, particularly those with:

  • high transport inputs
  • reliance on imported materials
  • energy-intensive manufacturing components

Where the Pressure Will Show First

We are already seeing early indicators across the market, and these will intensify over the coming months.

1. Contractor Pricing Behaviour

Contractors are becoming more cautious in their pricing, including:

shorter validity periods increased contingencies

qualifications around fuel and freight costs increased divergence in pricing between tenderers due to differing assumptions on escalation risk.

In some cases, contractors may decline to hold pricing at all without escalation mechanisms in place to manage their risk.

2.  Supplier Price Increase Notices

Suppliers are moving quickly to protect margins, issuing:

fuel surcharge adjustments revised freight rates

updated material pricing linked to energy inputs

These increases will inevitably flow through to head contractors and ultimately to principals.

3. Increased Claims and Disputes

Where contracts are silent or unclear, cost pressure typically manifests as claims.

Expect to see:

  • rise and fall claims (where mechanisms exist or are argued to exist)
  • delay and disruption claims linked to supply chain impacts
  • creative reliance on latent condition or change in law provisions

A key point of contention will be whether these cost increases fall within the contractor’s assumed risk under a lump sum contract, or whether they give rise to a compensable variation or contractual adjustment.

Not all claims will be well-founded, but all will require time, cost and resources to manage.

4.  Stress on Fixed-Price Contracts

Traditional lump sum contract models are particularly exposed where key input markets are volatile.

Without appropriate price adjustment mechanisms:

  • contractors carry disproportionate risk
  • margins erode quickly
  • project performance deteriorates disputes become more likely

This is especially acute for longer-term infrastructure and civil projects.

Sustained cost pressure may also increase financial stress across the contractor and subcontractor market, with potential implications for project continuity and delivery risk.

The Real Issue: Risk Allocation, Not Just Price

The key issue is not simply that costs are rising, it is who bears the risk of that increase.

The ordinary rule of thumb in risk allocation is that risk should be borne by the party who is best able to manage that risk. Typically the contractor market is ill-equipped to deal with major and uncontrollable fluctuations in input prices.

Many contracts entered into over the past 12–24 months were negotiated in a relatively stable pricing environment.

They may not adequately address: rapid fuel-driven escalation freight volatility

energy cost shocks supply chain disruption

Where risk allocation is unclear or unbalanced, pressure will surface during delivery.

What Should Councils and Principals Be Doing Now?

This is not a “wait and see” moment. There are practical steps that can and should be taken now.

1. Review Existing Contracts

Identify exposure across your current portfolio: Do rise and fall mechanisms exist?

Are they appropriately drafted and triggered? What cost categories are covered (and excluded)?

Are there notification requirements that will become relevant?

Understanding your contractual position early is critical. Whilst principals are under no obligation to do so, some consideration could be given to proactively negotiating cost escalation mechanisms into existing contracts to maintain contractor performance and engagement on projects.

2. Prepare for an Increase in Claims

Contract administration teams should be ready for: higher volumes of notices

  • more complex claims
  • tighter timeframes for assessment

Clear internal processes and disciplined assessment frameworks will be essential.

3. Reassess Procurement Models

For upcoming procurements, consider whether:

  • fixed-price models remain appropriate
  • escalation mechanisms should be included risk sharing approaches would deliver better outcomes
  • early contractor involvement (ECI) models may better manage uncertainty
  • contractor engagement will disappear without well documented risk sharing mechanisms

Procurement strategies that worked in a stable market may not be fit-for-purpose in a volatile one.

4.  Engage Early with the Market 

Understanding where risk sits in the supply chain is critical.

Early engagement can provide insight into:

  • materials most exposed to cost increases contractor appetite for risk
  • realistic pricing structures
  • appropriate allocation of escalation risk

This enables informed, proactive procurement decisions.

5. Focus on Contract Administration Discipline

In volatile environments, outcomes are often determined less by the contract itself and more by how it is administered.

Key focus areas include:

  • strict compliance with notice and time provisions, noting that failure to respond within prescribed timeframes may result in loss of entitlement or deemed acceptance of claims
  • consistent and transparent decision-making accurate record keeping
  • early identification of emerging issues

Strong contract administration can materially reduce dispute risk as well as risk of improper incursion of cost from opportunistic claiming.

Looking Ahead

It is too early to predict the duration or extent of current market disruption.

However, one thing is clear: Volatility has returned. Projects that navigate this period successfully will not necessarily be those with the lowest price, but those with:

  • clear and balanced risk allocation procurement models aligned to market conditions
  • disciplined contract management
  • proactive engagement with contractors and suppliers.

Final Thought

Cost escalation is no longer a theoretical risk.

It is back — and it is already working its way through the construction sector. Projects that navigate this period successfully will not be those with the lowest price, but those supported by clear risk allocation and well-structured procurement.

The question for councils and principals is simple: Are your contracts, and your procurement strategies, ready for it?

How Muscat Tanzer Can Help

Muscat Tanzer works alongside councils and project teams to navigate exactly these conditions; reviewing contracts to identify exposure, strengthening risk allocation and escalation mechanisms, and supporting procurement strategies that remain viable in volatile markets.

We also assist with real-time contract administration, including assessing and responding to claims as they arise. If cost escalation is beginning to impact your projects, we can help you respond early, manage risk, and maintain delivery outcomes.

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Paul Muscat

Director
Muscat Tanzer

Construction Infrastructure Projects@2x

The Role of Legal and Probity Advisors in Strategic Procurement

From Compliance Checkpoint to Strategic Partner

Legal and probity advisors are often engaged at the final stage of a procurement — just before release, or when something has gone wrong.

In both cases, their role is typically reactive — reviewing documents for compliance or resolving disputes after issues arise.

But as procurement evolves into a strategic enabler (as explored throughout this Series), the role of legal and probity advisors must evolve with it.

If procurement is to function as a strategic enabler — driving economic development, sustainability, governance and community trust — advisors must be involved earlier and more meaningfully.

The most effective councils do not engage advisors only to “sign off” on compliance.
They involve them early — as partners in governance, risk design and strategic delivery.

The Limitation of the Reactive Model

When legal or probity advisors are engaged late:

  • The procurement model is already set
  • Risk allocation may be poorly structured
  • Market engagement opportunities have passed
  • Evaluation frameworks may lack defensibility

Compliance may be achieved — but strategic value can be compromised.

What Strategic Advisory Looks Like

High-performing councils involve advisors during:

  • Procurement planning
  • Early market engagement design
  • Evaluation framework development
  • Contract structuring
  • High-risk exemption or direct negotiation decisions

This approach strengthens governance while enabling innovation.

Where Advisors Add the Most Value

  1. Early Market Engagement
    Designing structured protocols that encourage supplier dialogue without compromising probity.

Legal and probity advisors can assist by:

  • Designing structured market sounding protocols
  • Drafting briefing materials and disclaimers
  • Managing communication channels
  • Advising on equal treatment safeguards
  • Documenting engagement to withstand audit scrutiny

When properly structured, early engagement strengthens competition rather than undermines probity.

  1. Evaluation Frameworks
    Evaluation is one of the highest-risk stages in any procurement.

Strategic advisors add value by:

  • Aligning evaluation criteria with IP&R objectives
  • Structuring defensible scoring methodologies
  • Drafting clear moderation processes
  • Advising on handling clarifications and negotiations
  • Ensuring reasons for decision are properly documented

This reduces the likelihood of challenge while improving transparency and defensibility.

  1. Fit-for-Purpose Contracts
    Many councils rely on standard form contracts without tailoring risk allocation to project context.

Strategic legal input helps ensure:

  • Risk is allocated to the party best placed to manage it
  • Performance-based KPIs are measurable and enforceable
  • ESG and local participation obligations are legally robust
  • Variation and extension mechanisms are clear
  • Termination and dispute clauses align with governance settings

Contracts should reflect strategic intent — not just generic templates.

  1. Exemptions & Direct Negotiations
    Under the Regulation, councils may rely on certain exemptions or conduct direct negotiations in limited circumstances.

These decisions carry governance risk.

Strategic advisors assist by:

  • Documenting the justification framework
  • Testing value-for-money assessments
  • Designing negotiation protocols
  • Ensuring transparent reporting pathways

Clear documentation protects both the organisation and individual decision-makers.

  1. Contract Management Support
    Managing variations, performance issues and disputes proactively. Early advice is typically less costly than reactive dispute management.

It’s About Governance Confidence

Strategic advisors do not slow procurement down.

They:

  • Reduce probity exposure
  • Increase defensibility
  • Support innovation within the legislative framework
  • Strengthen transparency and public trust

The goal is not risk avoidance.
It is confident, structured risk management aligned with council objectives.

As councils face increasing scrutiny and complex procurement environments, engaging legal and probity advisors early can transform procurement from a compliance function into a strategic capability.

At Muscat Tanzer, we work with councils as proactive partners in procurement governance — helping move from reactive review to strategic implementation.

If your council is reviewing its procurement governance model, we would be pleased to discuss how strategic advisory engagement can support stronger outcomes, or we can provide probity training to our officers, executive or councillors.

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Paul Muscat

Director
Muscat Tanzer

Market Led Proposals@2x

Procurement in Infrastructure Delivery: Managing Risk Across the Lifecycle

Infrastructure delivery is one of the most complex and high-risk areas of procurement for councils.

Major projects – whether roads, waste facilities, water infrastructure, community assets or urban revitalisation programs – involve significant capital investment, technical complexity and long asset lifecycles.

Yet procurement risk is often viewed too narrowly.

Many councils focus heavily on running a compliant tender process. But the most significant risks in infrastructure delivery often arise outside the tender stage.

They emerge across the full lifecycle:

  • Project planning
    • Procurement model selection
    • Market engagement
    • Contract design
    • Construction delivery
    • Long-term asset performance

Strategic procurement ensures these stages are aligned.

The Importance of Early Procurement Strategy

Some of the most important procurement decisions occur before any tender is released.

This includes considering:

  • appropriate procurement models
  • market capability and competition
  • risk allocation
  • lifecycle cost implications
  • long-term operational requirements

When procurement strategy is integrated into early project planning, infrastructure delivery becomes more predictable and defensible.

Selecting the Right Procurement Model

Different projects require different approaches.

Common models include:

  • Traditional design–bid–build
    • Design and construct
    • Early contractor involvement
    • Collaborative or alliance models

A one-size-fits-all approach rarely delivers optimal outcomes.

The procurement model should reflect the complexity, risk profile and innovation requirements of the project.

Risk Allocation and Contract Design

Contract structure is critical in infrastructure procurement.

Effective contracts:

  • allocate risk to the party best placed to manage it
  • define measurable performance obligations
  • include clear variation and change mechanisms
  • align payment with performance

Overly aggressive risk transfer can increase pricing and lead to disputes.

Balanced risk allocation supports collaboration and delivery certainty.

Contract Management Is Where Value Is Protected

Even the best procurement strategy can fail without strong contract management.

Councils should ensure:

  • structured project performance monitoring
  • clear variation governance
  • regular supplier engagement
  • early dispute resolution mechanisms

Procurement success is ultimately measured during delivery.

Why This Matters

Infrastructure projects represent a significant investment of public funds and shape communities for decades.

Strategic procurement helps ensure these investments deliver:

  • Value for money
    • Reliable infrastructure
    • Reduced lifecycle costs
    • Transparent governance
    • Community confidence

Procurement in infrastructure delivery is not simply about running a compliant tender.

It is about managing risk and performance across the entire asset lifecycle.

How Muscat Tanzer Can Help

At Muscat Tanzer, we work with councils to design and deliver infrastructure procurement strategies that are legally robust, commercially balanced and aligned with long-term asset performance.

Our support includes:

  • Procurement model selection advice
  • Strategic procurement planning
  • Early market engagement design
  • Infrastructure contract drafting
  • Probity advisory services
  • Governance and evaluation framework design
  • Contract management guidance

We help councils manage infrastructure procurement risk from project concept through to operational performance.

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Paul Muscat

Director
Muscat Tanzer

Industries Construction Infrastructure Projects@2x

Embedding Environmental, Social and Governance (ESG) and Circular Economy Principles in Procurement

Turning Policy Intent into Measurable Outcomes

Councils are under increasing pressure to demonstrate leadership in sustainability, climate resilience, social inclusion and responsible governance.

Community expectations are rising.
State policy settings are evolving.
Infrastructure investment is accelerating.

Procurement sits at the centre of this shift.

As one of the largest levers councils control, procurement can either reinforce business-as-usual practices — or actively drive environmental, social and governance (ESG) outcomes and circular economy innovation.

The question is not whether councils should embed ESG in procurement.

It is how to do so lawfully, defensibly and practically.

Moving Beyond Statements of Intent

Many procurement policies now reference sustainability, local participation and social outcomes.

However, embedding ESG effectively requires more than:

  • A sustainability clause in the policy
  • A generic weighted evaluation criterion
  • A supplier code of conduct

Strategic ESG procurement means integrating outcomes across the full lifecycle:

  1. Planning
  2. Market engagement
  3. Evaluation
  4. Contract design
  5. Performance monitoring

Without this integration, ESG remains aspirational rather than operational.

Aligning ESG with the IP&R Framework

Under the Integrated Planning and Reporting (IP&R) Framework, councils are already required to link resources to community strategic objectives.

Embedding ESG through procurement strengthens that alignment by:

  • Linking capital expenditure to climate adaptation strategies
  • Supporting local economic resilience
  • Encouraging Aboriginal participation and social inclusion
  • Managing lifecycle costs and environmental risk

Procurement becomes a delivery mechanism for strategic objectives — not an isolated administrative function.

Environmental Outcomes: From Compliance to Innovation

Environmental considerations may include:

  • Emissions reduction and energy efficiency
  • Waste minimisation and resource recovery
  • Recycled content and sustainable materials
  • Water efficiency and biodiversity protection

To embed these effectively, councils should:

  • Define clear, measurable sustainability requirements
  • Use lifecycle cost analysis rather than upfront price alone
  • Structure evaluation criteria to reward credible environmental innovation
  • Require reporting obligations that are practical and auditable

Well-designed environmental procurement reduces long-term financial and climate risk.

Social Value and Local Economic Participation

Social procurement can support:

  • Local SME participation
  • Regional supply chain resilience
  • Aboriginal business engagement
  • Workforce development and apprenticeships
  • Diversity and inclusion outcomes

However, these must be structured carefully to remain compliant with competition and probity requirements.

Practical measures include:

  • Breaking large packages into accessible work components
  • Transparent local participation weighting criteria
  • Measurable reporting obligations in contracts
  • Clear definitions of “local” participation
  • Structured engagement sessions with regional suppliers

Social value must be defined, measurable and proportionate to the procurement.

Governance: The Often Overlooked ESG Pillar

ESG is not only environmental and social. Governance is equally critical.

Procurement governance supports ESG by:

  • Ensuring consistent evaluation methodologies
  • Managing conflicts of interest
  • Documenting decision-making pathways
  • Protecting transparency and public trust

Strong governance ensures ESG commitments are defensible and withstand scrutiny.

The Circular Economy Opportunity

The circular economy moves beyond waste reduction to redesigning how goods and services are procured, used and disposed of.

For councils, this may involve:

  • Designing contracts to prioritise repair and reuse
  • Specifying recycled or remanufactured materials
  • Including end-of-life obligations in contracts
  • Procuring services rather than assets (e.g. performance-based lighting contracts)

Circular procurement can reduce lifecycle costs, minimise landfill dependency and stimulate local innovation.

Avoiding Common Pitfalls

Embedding ESG in procurement must remain proportionate and defensible.

Common risks include:

  • Overly ambitious criteria that discourage competition
  • Poorly defined sustainability metrics
  • Subjective evaluation scoring
  • Reporting obligations that cannot be practically enforced

Strategic ESG procurement balances aspiration with legal and operational requirements.

Measuring What Matters

To move from aspiration to impact, councils should measure:

  • Percentage of spend with Aboriginal businesses
  • Emissions reduction outcomes achieved through contracts
  • Recycled content utilisation
  • Supplier compliance with ESG reporting obligations
  • Lifecycle cost savings

Data transforms ESG procurement from words to evidence.

Why This Matters for Councils

Embedding ESG and circular economy principles in procurement enables councils to:

  • Deliver on adopted Community Strategic Plans
  • Manage climate and financial risk
  • Strengthen regional economies
  • Demonstrate transparent and responsible governance
  • Respond to increasing community expectations

Procurement is not merely a compliance process.

It is a powerful policy delivery mechanism.

Practical First Steps

Councils seeking to strengthen ESG procurement capability should consider:

  1. Reviewing procurement policies for ESG clarity and alignment with IP&R
  2. Standardising ESG evaluation criteria and definitions
  3. Developing lifecycle costing guidance
  4. Embedding measurable ESG KPIs in contract templates
  5. Introducing supplier reporting dashboards
  6. Training staff on defensible ESG evaluation practices

Small structural changes create measurable long-term impact.

How Muscat Tanzer Can Help

At Muscat Tanzer, we work with councils to embed ESG and circular economy principles into procurement frameworks

Our support includes:

  • ESG procurement framework design
  • Template and contract suite development
  • Circular economy contract drafting
  • Evaluation and probity advice
  • Training and capability workshops
  • Governance and reporting frameworks

We help councils move from ESG aspiration to measurable procurement performance.

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Paul Muscat

Director
Muscat Tanzer

Engineering@2x

Building Procurement Capability: From Policy to Practice

Across NSW local government, procurement frameworks have matured. Policies align with the Local Government Act, the Local Government (General) Regulation, and the IP&R Framework. Sustainability, local participation and governance principles are embedded on paper.

But many councils are asking the same question:

Why does strategic procurement still feel difficult in practice?

The answer is capability.

Policy reform is only the first step. Strategic procurement is delivered by confident staff applying clear governance, practical tools and consistent contract management across the lifecycle.

The Gap Between Framework and Delivery

Common challenges include:

  • Policies that are technically sound but difficult to apply
  • Inconsistent use of templates
  • Procurement treated as a gatekeeper rather than a strategic partner
  • Contract management overlooked once the contract is signed

The issue is not commitment — it is translation.

Councils must move from policy compliance to organisational capability.

What Procurement Capability Actually Looks Like

True capability combines:

✔ Clear delegations and decision-making pathways
✔ Practical templates that embed policy principles
✔ Role-based training (not generic theory)
✔ Structured contract management processes
✔ Data and reporting to measure performance

When these elements align, procurement becomes a strategic enabler — not an administrative checkpoint.

Why Contract Management Is the Missing Piece

Many councils run robust tender processes but lose value during delivery.

Capability maturity means:

  • Monitoring KPIs
  • Running structured supplier performance reviews
  • Managing variations consistently
  • Capturing lessons learned
  • Reporting on measurable outcomes

Value for money is realised during contract performance — not just at evaluation.

A Simple Maturity Lens

Councils typically move through four stages:

  1. Compliance focused
  2. Structured and standardised
  3. Integrated with IP&R planning
  4. Strategic and data-driven

The transition from Stage 2 to Stage 4 is a capability journey — not a policy rewrite.

Practical First Steps

  • Conduct a procurement capability diagnostic
  • Standardise core templates and contract suites
  • Deliver role-based procurement training
  • Introduce contract management dashboards
  • Establish governance oversight for high-risk procurements

Small structural improvements create long-term strategic impact.

Why This Matters

Procurement is one of the largest levers councils hold to drive:

  • Local economic development
  • Sustainability and ESG outcomes
  • Regional resilience
  • Governance and public trust

Those outcomes are not delivered through policy alone.

They are delivered by capable people, applying structured systems, with confidence.

At Muscat Tanzer, we work with NSW councils to move from procurement as process to procurement as performance — strengthening governance and delivering measurable community benefit.

If you would like to discuss procurement capability uplift in your council, we would be pleased to assist.

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Paul Muscat

Director
Muscat Tanzer

Construction Litigation@2x

Logan to Gold Coast Faster Rail: What Property Owners Need to Know

The Queensland Government’s Logan to Gold Coast Faster Rail project is a major piece of transport infrastructure aimed at easing congestion and improving rail reliability between Brisbane and the Gold Coast. While the project promises long-term benefits for the region, it may also have very real and immediate implications for property owners along the rail corridor.

This article explains what the project involves, how compulsory acquisition works in Queensland, and what landowners should do if their property is affected.

What is the Logan to Gold Coast Faster Rail project?

The Logan to Gold Coast Faster Rail project focuses on the busy rail corridor between Kuraby and Beenleigh, spanning approximately 20 kilometres. At a high level, the project involves:

  • Essentially doubling the existing rail tracks along this corridor;
  • Separating express and all-stops services to improve reliability and travel times; and
  • Supporting future population growth in Logan and the northern Gold Coast.

To deliver these outcomes, additional rail infrastructure, land, and construction access will be required along parts of the corridor. This means some private land may need to be acquired, either permanently or temporarily, to enable the works.

What is compulsory acquisition in Queensland?

Compulsory acquisition is the process by which a government authority can lawfully acquire private land for a public purpose, such as transport infrastructure.

In Queensland, compulsory acquisition is governed by legislation that balances the State’s need to deliver critical infrastructure with the rights of affected property owners. Importantly, land cannot simply be taken without process or compensation.

Key features of compulsory acquisition include:

  • The acquiring authority must demonstrate a genuine public purpose;
  • Property owners must be given formal notice of the proposed acquisition; and
  • Owners are entitled to just compensation, assessed in accordance with statutory principles.

What rights do property owners have?

If your land is affected by the Faster Rail project, you have clear legal rights. These include the right to:

  • Receive formal notice of the intention to acquire your land;
  • Object to the proposed acquisition within the statutory timeframe;
  • Be compensated not only for the value of the land taken, but also for:
    • Disturbance costs (such as legal, valuation and relocation expenses);
    • Business disruption; and
    • Severance or injurious affection to any remaining land; and
  • Seek independent legal and valuation advice, with reasonable professional costs often recoverable as part of compensation.

Compulsory acquisition can also involve temporary construction easements or partial acquisitions, each of which raises different legal and valuation issues that should be carefully assessed.

How Muscat Tanzer can assist

Compulsory acquisition is a technical and time-sensitive process, and early advice can make a significant difference to outcomes.

Muscat Tanzer regularly assists landowners, businesses, and developers affected by government infrastructure projects. We can help you:

  • Understand whether and how your land is affected by the Faster Rail project;
  • Prepare and lodge objections where appropriate;
  • Navigate negotiations with the acquiring authority; and
  • Ensure your compensation properly reflects the full impact of the acquisition.

If your property is located along the Logan to Gold Coast rail corridor and you have received notice — or anticipate that your land may be affected — we encourage you to seek advice early.

Please contact Muscat Tanzer to discuss how we can assist you in protecting your interests and securing fair compensation.

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Paul Muscat

Director
Muscat Tanzer

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Mitchell Trevaskis

Associate
Muscat Tanzer

Construction Litigation@2x

Outcome-Based Procurement: Paying for Results, Not Inputs

Many local government contracts still focus on inputs: hours worked, activities completed, materials supplied. While familiar, this approach does not always deliver the outcomes councils and communities actually care about.

Outcome-based procurement offers a different approach. Rather than paying solely for effort, councils link performance and payment to clearly defined results — improving service quality, encouraging innovation, and strengthening accountability within the existing legislative framework.

Why Input-Based Contracting Falls Short

Traditional contracts often:

  • Reward activity rather than performance
  • Limit supplier innovation
  • Transfer little delivery risk
  • Focus contract management on compliance, not results

As financial pressure and scrutiny increase, councils are being asked to demonstrate not just value for money, but value delivered.

What Outcome-Based Procurement Really Means

Outcome-based procurement does not remove scope or governance. It reframes success.

Key features include:

  • Clearly defined outcomes aligned to council objectives
  • Measurable performance indicators
  • Payment mechanisms linked to results
  • Flexibility in how suppliers achieve the outcome

The focus shifts from managing inputs to managing performance.

Where It Works Best

Outcome-based procurement is particularly effective for services such as:

  • Asset and facilities maintenance
  • Waste and resource recovery services
  • Technology and digital delivery
  • Ongoing service contracts where performance matters more than method

It is not suitable for every procurement — proportionality and capability remain critical.

Designing Outcomes That Work

Effective outcome frameworks:

  • Use a small number of meaningful measures
  • Avoid metrics outside the supplier’s control
  • Include realistic baselines and targets
  • Balance incentives with safeguards

Poorly defined outcomes create dispute risk. Well-designed outcomes reduce it.

Paying for Performance, Not Just Activity

Successful outcome-based contracts typically use:

  • Performance-linked payments
  • Incentives for efficiency or innovation
  • Milestone payments tied to results
  • Capped service credits to manage risk

The goal is alignment — ensuring supplier incentives support council objectives.

Governance Still Matters

Outcome-based procurement must be built into the procurement process from the start. Evaluation criteria, contract terms and performance reporting all need to align.

Strong contract management capability is essential — outcomes only work if they are actively monitored and enforced.

From Process to Performance

Councils that adopt outcome-based procurement well often see:

  • Improved service quality
  • Greater supplier innovation
  • Clearer accountability
  • Better alignment between spending and strategic outcomes

Outcome-based procurement is not about shifting risk blindly. It is about paying for what matters.

At Muscat Tanzer, we support NSW councils to design outcome-based procurement models that are legally compliant, commercially realistic and operationally workable.

Our support includes:

  • Advising on when outcome-based procurement is appropriate
  • Developing outcome frameworks and performance measures
  • Drafting incentive and payment mechanisms
  • Aligning evaluation criteria with contract outcomes
  • Supporting contract management and performance governance

Outcome-based procurement moves councils beyond buying activity — toward buying results that deliver real community value.

 

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Paul Muscat

Director
Muscat Tanzer

Market Led Proposals@2x

Beyond the Bench: How 2025 Court Decisions Are Reshaping Development in 2026

Throughout 2025 the Planning and Environment Court delivered a series of decisions that will influence the approach of developers, consultants and local governments in the year ahead. The judgments cover a wide range of issues from minor change assessments to infrastructure charging, subdivision proposals, environmental constraints, childcare centres and coastal apartment development. The consistent theme across these decisions is a careful reinforcement of statutory requirements and a strong emphasis on planning scheme intent, good design, environmental protection and justified decision making.

Minor changes and the importance of external built form

In the decision concerning SVMJ 1234 Pty Ltd v Moreton Bay Regional Council [2025] QPEC 7 (31 March 2025) the Court rejected an attempt to categorise a series of design amendments as a minor change. Although the changes reduced the number of tenancies and the total gross floor area and improved some functional outcomes, the Court found that the revised design materially altered the building’s presentation to the street. The new arrangement changed the scale, architectural expression and character of the development. As a result the proposal was not considered a minor change. The decision confirms that reductions in floor area or tenancy numbers are not automatically decisive. Where amendments significantly influence the appearance or presence of a development in the public realm, they are unlikely to qualify as minor.

Infrastructure charging and the limits of Council power

The judgment involving OPD Developers Pty Ltd & Anor v Logan City Council [2025] QPEC 8 (30 April 2025) provides important guidance on the circumstances in which an infrastructure charges notice can be issued. The project involved a private hospital already authorised by a Ministerial Infrastructure Designation which meant the use was accepted development. The Council later issued an infrastructure charges notice after a building certifier approved building work. The Court declared the charges notice invalid because the accepted development status meant there was no new demand on trunk infrastructure that could lawfully support a charge. The building approval did not generate additional demand beyond what the designation already contemplated. The decision clarifies that a charges notice cannot be issued simply because a building approval exists. There must be extra demand created by development that actually requires approval.

Delays, amendments and the consequences of failing to raise issues in time

In Nucrush Pty Ltd v Gold Coast City Council & Ors (No 2) [2025] QPEC 10 (28 May 2025) the Court rejected an attempt by the Council to add new reasons for refusal based on updated ecological mapping. The Council became aware of the mapping changes years earlier but raised the issue only after significant delay. The Court found the explanation for that delay inadequate and accepted that the appellant would suffer prejudice if the new issues were introduced at such a late stage. The decision serves as a clear reminder that appeal proceedings must be conducted efficiently. Attempts to introduce new arguments or evidentiary foundations late in the process will be closely scrutinised and are unlikely to be permitted without compelling justification.

Referral agency functions and the meaning of a refusal

In the matter involving Leeward Management Pty Ltd v Brisbane City Council [2025] QPEC 17 (4 July 2025) the Court examined whether the absence of a referral agency response amounted to a part refusal. The certifier argued that the missing material triggered an appeal right. The Court disagreed and accepted that the Council’s conduct did not constitute any form of refusal for the purpose of the Planning Act 2016 (Qld). The decision affirms that there can be a single development application even when an assessment manager also performs referral agency functions. It also clarifies that the omission of a particular document or stamp does not automatically amount to a refusal and will not create an appeal right unless it genuinely reflects a refusal of part of the application.

Small lot subdivisions and the protection of neighbourhood character

The decision in Wells & Anor v Brisbane City Council [2025] QPEC 22 (17 October 2025) involved a proposal to convert an addition to an existing dwelling into a separate dwelling on a very small new lot. Although the structure already existed, the Court identified significant conflict with the planning scheme. The Character Residential Zone anticipates larger lots that retain traditional suburbs with generous gardens and established vegetation. The proposed new lots were among the smallest in the precinct and were inconsistent with the intended pattern of development. One of the lots was also highly flood prone and would be largely inundated in a severe event. The Court concluded that the proposal represented an overdevelopment of the land and that it failed to minimise flood risk. This outcome reinforces that character is not limited to how buildings appear. The rhythm of lot sizes and the quality of open space are equally important.

Childcare centre approvals and the continuing relevance of demonstrated need

The appeal involving McNamara-Healy Holdings Pty Ltd v Redland City Council & Ors [2025] QPEC 23 (22 October 2025) concerned a proposed childcare centre at Birkdale Road. The Court found that there was a clear community and economic need for additional childcare services. Although the proposal was not small in scale, its design was compatible with its mixed use context and did not produce unacceptable amenity impacts. The Court accepted that the development substantially complied with relevant assessment benchmarks and that the combination of need, design and context justified approval. The decision demonstrates that well supported need evidence remains influential when a proposal departs from aspects of the planning scheme but still represents a positive planning outcome.

Environmental constraints and the difficulty of clearing sensitive land

The appeal in Brades Property Agnes Water Pty Ltd v Gladstone Regional Council [2025] QPEC 24 (24 October 2025) involved a proposal for a major low density subdivision on a heavily vegetated site at Agnes Water. The Court concluded that the proposal failed to avoid or minimise impacts on important ecological values and that the proponent had not demonstrated a sufficient level of community or economic need to justify the clearing of the site. The environmental offset strategy was found to be inadequate. The Court also declined to give determinative weight to the existing approval for a manufactured housing estate because of concerns about its practical implementation. The decision highlights the significant challenges facing large scale residential proposals in environmentally sensitive locations.

Privacy, conditions and the finality of merits decisions

The matter involving Aesthete No. 15 Pty Ltd & Anor v Council of the City of Gold Coast & Anor (No. 2) [2025] QPEC 25 (5 November 2025) returned to Court solely to resolve a dispute about conditions after the merits of the development had already been decided. The adjoining landowners sought additional privacy screening on several levels of the approved building. The Court refused the request. It observed that the privacy interface had already been considered and resolved in the merits judgment and that the additional screening was not reasonably required. The decision reinforces that conditions cannot be used to revisit issues that the Court has already determined.

What these decisions mean for 2026

The 2025 judgments collectively establish a clear direction for planning and development in 2026. Amendments to approved designs must respect the external presentation of buildings. Infrastructure charging must be limited to genuine extra demand created by assessable development. Appeals must be prosecuted diligently and without undue delay. Character protections will continue to be applied with real force, particularly in established neighbourhoods. Environmental considerations carry substantial weight, especially where large areas of vegetation are proposed to be cleared. Evidence of community need remains capable of supporting proposals that otherwise raise concerns. Conditions will not be used to re-open matters already decided.

Together, these decisions set strong expectations for clarity, justification and respect for planning scheme intent as development activity continues to intensify across Queensland.

How We Can Help

Planning law does not operate in the abstract. It is continually refined by how the Court applies it to real projects, sites and disputes.

At Muscat Tanzer, we have the resources to critically evaluate what recent Planning and Environment Court decisions mean in practice and how they should inform strategy, design and decision-making going forward.

We assist with:

  • interpreting case law and its implications for existing approvals and future proposals;
  • advising on whether design changes, amendments or conditions create legal risk;
  • assessing appeal prospects, evidentiary strength and strategic options;
  • representing clients in Planning and Environment Court proceedings;
  • responding to infrastructure charging, referral agency and compliance disputes; and
  • advising homeowners and landowners navigating planning disputes or enforcement issues.

Understanding how the Court is approaching planning issues is critical to reducing risk and avoiding costly missteps. We help our clients anticipate how arguments are likely to be tested and make informed decisions with clarity and confidence.

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Mitchell Trevaskis

Associate
Muscat Tanzer

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Hugo Sherlock

Lawyer
Muscat Tanzer

Waste@2x

Queensland Planning Reforms: What the Planning Amendment Regulation 2025 Means

The Queensland Government has recently introduced the Planning Amendment Regulation 2025, which updates the Planning Regulation 2017 (Qld). These changes aim to improve housing supply, streamline approvals for essential education infrastructure and strengthen safety and design standards. The amendments focus on four key areas:

  • shared and workforce housing;
  • community residences;
  • temporary relocatable classrooms for State schools; and
  • build-to-rent housing.

Housing Accommodation

The Government has extended the streamlined provisions for rooming accommodation until 2 December 2026. These changes are designed to ensure a steady supply of rental housing while Local Governments update their planning schemes. Key changes include:

  • new landscaping requirements within front boundary setback; and
  • continued support for rental housing options during the transition period.

Rural Workers’ Accommodation

Temporary pathways under the Queensland Rural Workers Accommodation Initiative have been extended to simplify approvals for rural worker housing projects. Key updates include:

  • Part A – Repurposed existing facilities: Extended for 12 months to allow ongoing use of existing premises;
  • Part B – New small-scale accommodation: Extended for 24 months to streamline approval for new rural worker housing; and
  • additional safeguards ensure that new developments avoid mapped hazard areas.

Community Residence

Community residences provide housing for people who need assistance with daily living and promote inclusion in residential neighbourhoods. The amendments introduce clear design, siting and hazard considerations. Key changes include:

  • reduced zones where community residences can be built without development approval;
  • introduction of natural hazard considerations, including flood, bushfire, coastal, landslide and mining-related hazards;
  • maximum of 7 bedrooms per residence, with design requirements for Class 2 and 3 buildings:
  • maximum site coverage: 70%;
  • front setback: 6m;
  • rear setback: 4m; and
  • side setbacks: 1.5m.

Why it matters:

  • ensures housing is safe and appropriately scaled;
  • provides consistent standards across Queensland; and
  • supports vulnerable residents while maintaining neighbourhood character.

Temporary Relocatable Classrooms for State Schools

To accommodate growing enrolments, a Temporary Accepted Development (TAD) pathway has been introduced for relocatable classrooms. This pathway will operate until 31 December 2029. Key points:

  • applies only to State schools and not to private schools;
  • includes requirements for building height, setbacks and avoidance of hazard areas;
  • enables rapid deployment of temporary classrooms while maintaining safety and community standards; and
  • after 2029, use rights will cease unless planning approval is obtained for permanent use.

This pathway ensures that schools can quickly respond to enrolment growth without creating long-term impacts on school sites or surrounding communities.

Build-to-Rent Housing

A new land use definition for build-to-rent housing has been introduced, providing clarity for Local Governments and developers.

What is built-to-rent housing?

  • purpose-built for long-term rental accommodation;
  • entire developments remain rental stock, managed by a single entity;
  • typically includes on-site management and shared amenities; and
  • must include 50 or more dwellings.

Why it matters:

  • encourages professionally managed rental housing at scale;
  • provides long-term rental stability for tenants; and
  • supports high-quality, well-maintained housing with shared facilities.

Common features include:

  • rooftop gardens, lounges and co-working spaces;
  • bike facilities and convenient access to public transport; and
  • energy-efficient and environmentally friendly design.

Location suitability:

  • typically located in areas with good access to public transport, employment, education and services.

Conclusion

The Planning Amendment Regulation 2025 is a significant step by the Queensland Government to:

  • expand housing options through rooming, workforce and built-to-rent housing;
  • ensure community residencies are safe, well-designed and integrated into neighbourhoods; and
  • support State schools with timely development or temporary classrooms.

These changes provide greater certainty for developers, Local Governments and residents, while addressing housing supply challenges and supporting community infrastructure.

How We Can Help

At Muscat Tanzer, we work with private clients, developers and Local Governments to deliver planning, property and infrastructure outcomes that are strategic, compliant and practical.

Our support includes:

  • providing strategic planning and development advice across all stages of a project lifecycle;
  • advising on land use, zoning, approvals pathways and regulatory requirements;
  • preparing, managing and negotiating development applications and accepted development pathways;
  • assessing site constraints, hazards and design considerations early to reduce risk;
  • coordinating with councils, State agencies and consultants to streamline approvals; and
  • supporting education, housing and community infrastructure projects from concept through delivery.

Effective planning is not just about obtaining an approval. It is about making informed decisions early and at every stage of the process. At Muscat Tanzer, we help our clients navigate complexity, manage risk, deliver projects and address planning concerns with confidence and clarity.

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Mitchell Trevaskis

Associate
Muscat Tanzer

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Hugo Sherlock

Lawyer
Muscat Tanzer