Annual Report 2005-2006

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Your location: Performance > Outcome 4 > Output 4.2 > Reporting against effectiveness indicators

OUTPUT 4.2: Contract management

Reporting against effectiveness indicators

On this page: Overview :: Construction projects :: Contract with United Process Solutions (UPS) :: Outlook


In effectively managing the overseas estate, the department made extensive use of contracted services, including project management and construction, property purchase, audit and legal. We selected service providers in accordance with the Government's competitive tendering and contracting procedures.

A range of outsourced property services was provided to the overseas owned estate under the department's long-term contract with United Group Services (UGS)—formerly United Process Solutions.

Construction projects

Photo - See caption below for description
High Commissioner to India John McCarthy (third from left) initiates the final concrete pour to top out works on the new chancery building in New Delhi.
Enlarge image :: Photo gallery

The department managed a significant construction program in the overseas estate throughout 2005–06. A major new chancery building was completed in Colombo (see box below). Work continued on the new chanceries in New Delhi and Harare and project works proceeded on refurbishment of the high commission offices in London, Singapore and Wellington. We obtained Parliamentary approval for new chancery projects in Phnom Penh and Rangoon. Substantial refurbishment works were completed on the head of mission residence in Washington.

In addition to projects in the owned estate, OPO managed the department's leased estate projects, including premises for our new mission in Kuwait and relocation of our chancery in Brunei. Work continued in 2006 on the relocation of the consulate-general offices in Guangzhou and Los Angeles, construction of new offices in Port Vila and fit-out of new offices in Taipei.

Details of projects undertaken in 2005–06 are provided under output 4.2 quality and quantity information.

New chancery for the Australian high commission in Colombo

The department's Overseas Property Office (OPO) completed construction of our new chancery in Colombo, Sri Lanka in April 2006. The chancery, which was built on land acquired for the purpose, replaced an ageing building that was no longer suitable for Australia's representational requirements in Sri Lanka.

The new chancery provides efficient purpose-built office accommodation for the department, as well as the Department of Immigration and Multicultural Affairs, Austrade and AusAID.

This was the first major owned chancery project to be conceived, planned and delivered by OPO since the Office's establishment in 2001. The new chancery is a two-storey, high-quality building providing modern, secure and efficient office space for staff and visitors with a strong focus on health and work safety. In design and presentation the new building projects a contemporary image of Australia.

Parliament approved construction of the new chancery in 2003 following consideration by the Parliamentary Joint Standing Committee on Public Works. On-site works began in August 2004. Additional security works were undertaken during construction, reflecting continuous reviews of security requirements of our overseas missions.

OPO and strategic alliance partner United Group Services managed the project in close consultation with the post and other agencies represented in Colombo.

For information on other chancery construction projects managed by OPO in 2005–06, see output 4.2.

Contract with United Group Services (UGS)

The department has an outsourcing contract with UGS for the provision of property services in the overseas owned estate. The department maintained continuous dialogue with UGS to ensure effective delivery of contract services.

Under the contract, UGS provides facilities management in the owned overseas estate, including servicing of plant and equipment and preventive maintenance programs in posts. In some larger posts UGS provides on-site facilities managers to oversee locally employed UGS staff. Posts report faults or problems to the company's 24-hour call service in Australia.

The department surveyed posts' satisfaction with services provided by UGS through the year as a measure of the contract's effectiveness. In general, survey results demonstrated a good level of performance by UGS (see output 4.1 quality information and output 4.2 quality and quantity information).


The department will continue to manage the Government's substantial construction and refurbishment program in the overseas property estate through 2006–07 in accordance with legislative and governance requirements. We will maintain the existing close dialogue with UGS to ensure the continued effective provision of property services under the outsourcing contract.

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