Thursday, March 31, 2011

Australia's NBN Co. Suspends Tender in Push for Cost Cutting

Australia's NBN Co abruptly and indefinitely suspended its network construction tender. After four rounds of pricing negotiations with construction companies, NBN Co. said it was unable to secure acceptable terms and prices.

NBN Co Head of Corporate Services, Kevin Brown said: "We have said all along that we are building an NBN, but not at any price. We have thoroughly benchmarked our project against similar engineering and civil works projects in Australia and overseas and we will not proceed on the basis of prices we are currently being offered.

"NBN Co is confident it can secure better value for money by going a different route. We have left the option open to continue negotiations at a later stage."


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