Are you shovel ready?

Continuing with our popular Q&A Series.....

Q: When will governments start to roll out the large-scale funds for shovel ready projects?
A: The large-scale shovel ready funds have begun, led by Victoria.  Monday 18th May 2020, Danial Andrews, Premier of Victoria announced ‘Building Works: More Jobs for Victorians’.  We have provided an extensive extract of the media release as we expect other states to follow shortly along very similar lines and it’s important to understand the focus of the funding.  Do you have your projects shovel ready? 

Media release extract:
 
Today, the Government launched the first part of our Building Works package, which will provide $2.7 billion towards shovel-ready projects – big and small – to get thousands of people back to work. The Victorian Government will get shovels in the ground and thousands of people back to work, building the projects that matter to Victoria – and creating the jobs that matter to Victorians.
 
The package will create 3,700 direct jobs for construction workers, painters, plasterers, gardeners, engineers, plumbers, electricians, carpenters, maintenance workers, administration staff and many others. Thousands more jobs will be created across our supply chains, including manufacturing, logistics, transportation, warehousing and retail – while also pumping extra dollars back into our economy.
 
At the centre of the Building Works package is $1.18 billion in education infrastructure projects.
Beyond school infrastructure, Building Works includes hundreds of projects that have been selected because they can get underway as soon as possible, meaning shovels in the ground – and boots in the mud – within a matter of weeks and months.
 
The key requirement for these projects is workers who are ready to get on the job and the ability to get going right away, with companies required to find new employees through Working for Victoria in the first instance.
 
While creating solid jobs, these sometimes small projects will also mean the world to those who will benefit from them. To help our tourism sector bounce back bigger and better than ever, the package includes $382 million in upgrades, maintenance and new experiences at tourism destinations across the state.
 
From delivering 50 kilometres of mountain bike trails in the Ararat Hills to upgrades at the Gippsland Lakes, this investment will be particularly vital in creating and sustaining jobs in regional Victoria. Funding is also included for local sports facility upgrades, work to improve our waterways and coastal areas, and revitalisation and maintenance projects from tree-planting to graffiti removal in communities across the state. The transport network also gets a big boost, with $328 million for resurfacing and patching roads, local pier upgrades along the coast, $100 million for the critical upgrades of CFA and SES stations, disability accommodation, mental health and aged care facilities across Victoria.
But we know this is just the start.
 
The extract provides the local government relevant funding.  The full media release can be found here: https://www.premier.vic.gov.au/wp-content/uploads/2020/05/200518-Building-Works-More-Jobs-For-Victorians.pdf
 
After this media release, we can add ‘boots in the mud’.
 
Q: What does shovel ready mean?  
A: We know every government has a definition, but to keep it simple we can summarise the key points.  Shovel ready means that you own the land or have permissions in place, design and costings are complete and will not change, community consultation is done, and planning or licence approvals are in place. The project plan is finished, financial (including matching funds if required) are confirmed, and risks have been identified and managed (materials and human capability and capacity).  In the current environment proof of the immediate jobs to be created is an additional critical element. 
 
All of these elements are then documented. Section51 has long experience with shovel ready projects.  We know that no matter how much the immediate pressure is to get projects going, the real test is what happens in 2 or 3 years when the auditor comes through.  You must have the documentation in place today to protect yourself, council and the community. 
 
Q: What is happening in my state and territory?  
A: Other states and territories are now announcing their own shovel ready programs.  There are many more open programs than these, but they provide an indication of the trend. A quick look around the country:

NSW: Friday 8 May 2020. The $15 million Streets as Shared Spaces Fund is a one-off grant program supporting quick response projects to support communities now and in the future with our re-emergence from COVID-19. Your council is encouraged to apply for a Streets as Shared Spaces grant for a temporary intervention project to deliver short-term and semi-permanent improvements.
https://www.dpie.nsw.gov.au/premiers-priorities/great-public-spaces/streets/grants-for-councils
 
WA: Tuesday 12 May 2020. Applications for round three of the Regional Economic Development Grants (RED Grants) program are now open and close on 7 July 2020. Eligible applicants can apply for round 3 of RED Grant funding for individual projects that contribute to sustainable jobs, expand or diversify industry, develop skills and capability, attract new investment or maximise recovery from COVID-19 impacts to the region.
http://www.drd.wa.gov.au/rfr/REDG/Pages/default.aspx
 
QLD: Tuesday, May 19, 2020. Jobs supported through $200M council program
Creating local jobs is the focus of a $200 million boost of the Palaszczuk Government’s signature and successful Works for Queensland job-creation program. The boost to the program means communities right across Queensland will see new, upgraded or refurbished playgrounds, swimming pools, community centres, caravan parks, sport and recreation facilities, libraries, water and sewer infrastructure, and waste management facilities. We will also be rolling out the latest $70 million round of the Building our Regions program.
http://statements.qld.gov.au/Statement/2020/5/19/jobs-supported-through-200m-council-program
 
SA: Sunday 17 May 2020. Shovels are in the ground on the Wigley Reserve upgrade, the first of 37 local community projects funded as part of the Marshall Government’s stimulus package to support local jobs and businesses. Last week the Marshall Government announced $65.5 million in funding, in conjunction with councils, to support local jobs and deliver better, greener and more open spaces for the community. “We are delivering $1 billion in economic stimulus to keep as many South Australians in a job as possible and support local businesses during this unprecedented global pandemic. We will continue to work with councils, who deliver these projects, to fasttrack them where possible and support local jobs.
https://www.premier.sa.gov.au/news/media-releases/news/shovels-in-the-ground-on-local-projects
 
TAS: Friday 15 May 2020. We are going to build ourselves out of this, no ifs no buts. That is why I have announced today that in the coming weeks and months we lay out the most aggressive construction program in Tasmania’s history. This week I have tasked Treasury to do an immediate review of the State’s $3.7 billion infrastructure program and identify projects that can be brought forward and commenced swiftly. Projects like affordable houses, maintenance on schools and Government buildings, regional roads, bridges and dams. I expect to announce the re-profiled construction and infrastructure program within coming weeks. This will be the first major step in our rebuild program. http://www.premier.tas.gov.au/releases/tasmania_to_build_its_way_forward_from_coronavirus
 
NT: Monday 18 May 2020 Sport and Active Recreation Response and Resilience Package: Round 2 Grants Open. Territory Peak Sporting Bodies, sporting and active recreation organisations and regional councils are encouraged to apply for the second expedited grant round of the Territory Labor Government’s $1.3 million Sport and Active Recreation Sector Immediate Response and Resilience Package. The package is reprioritised funding to support the sport and active recreation sector through the impacts of the COVID-19 pandemic and the second round of grants open through grantsnt.nt.gov.au and close at 2pm on 20 May 2020.
http://newsroom.nt.gov.au/mediaRelease/33283
 
ACT: Wednesday 6 May 2020. The Inclusion and Participation Division of the ACT Community Services Directorate is pleased to announce the availability of the 2019-20 Community Support and Infrastructure Grants (CSIG) Program.  As part of the ACT Government’s commitment to supporting the Canberra Community during and after the COVID-19 pandemic, projects, activities or initiatives which demonstrate the potential to support social connection and community resilience during and after the COVID-19 pandemic will be viewed favourably.
https://www.communityservices.act.gov.au/wac/community/grants/community-support-and-infrastructure-grant-guidelines

Australian Government Tuesday 28 April 2020. The opportunity to drive the future of road safety innovation and technology is here, with applications for Round 1 of the Australian Government’s $12 million Road Safety Innovation Fund now open. Deputy Prime Minister and Minister for Infrastructure, Transport and Regional Development Michael McCormack said the program would provide grants for road safety research and technology development to improve safety outcomes across the nation. “The fund will target innovating projects addressing priority areas including improving road safety in regional and remote areas, reducing driver distraction and drug driving and supporting better safety outcomes for vulnerable road users.
https://minister.infrastructure.gov.au/mccormack/media-release/applications-open-road-safety-innovation-funding
 
 
Q: What are this week’s 3x3?
 
3 things to do this week: 

1. Review the newly opened grant opportunities and start the application process for your shovel ready projects; (new)
2. Confirm financial commitments: What council can afford in applying for new grant opportunities, which will require either matching funding or a loan from State or Australian Government; and
3. Scan your business and community for unexpected opportunities for future funding applications now that restrictions are being lifted (new).

 3 things to do over the next 3 weeks: 

1. Look out for business partners for applications with the increased emphasis on supply chains in open grants; (new)
2. With the easing of restrictions open up more communication with environment and tourism and other groups on their needs and potential for support through State and Australian Government programs; (updated)
3. Continue with the selection of 2 or 3 projects council can actively pursue and commence the process of preparing these to be shovel ready.  These projects should be from the small and immediate such as footpaths and park restoration to major infrastructure.  Governments will be looking for all types of projects with a focus on immediate job creation.

 
3 things to do over the next 3 months:

1. Have an active ‘supply chain’ map in place linking local contractors and suppliers with grants you are applying for; (new)
2. Prepare an external funding profile on what council can reasonably take on from external grants and funding from a financial, staff resource and/or contract perspective over the next budget cycle;
3. Complete the shovel ready preparation for the first 2 projects and move on to the next projects on the list.

 
Section51 has extensive experience in the rapid preparation of your projects to be shovel ready.  We can help you as grant programs are opening now and you need your documentation to be what the funding provider needs.

If you have questions, send them in and we will answer them personally as well as include them for all readers.  Advice and support specific to your council is available from Section51 from the smallest state government grant program to the largest of the Australian Government funding offers. 

We are here to help.

Chat with us today on 02 6162 2092 or email us at [email protected].