NSW Engineering and Design Sector Sees Surge in Tenders, Major Contracts, and Policy Shifts

Sydney, June 20, 2025 — New South Wales’ engineering and design drafting industry is experiencing a significant upswing, with a raft of new government tenders, major contract awards, and policy reforms reshaping the landscape for local businesses.

Wave of New Tenders Across NSW

The NSW Government has announced a series of high-profile tenders targeting engineering, design, and drafting services. Among the most notable is the Anglesea Paterson Project, seeking a head contractor for design and construction, with submissions closing June 20, 2025. The education sector is also a hotspot, with upcoming tenders for upgrades and new builds at Austral Public School, Condell Park High School, Jerrabomberra High School, and Nirimba Fields Primary School—all scheduled to open for bids in the first quarter of the 2024/2025 financial year.

Specialized drafting services remain in high demand, with government departments and councils seeking expertise in compliance, bid strategy, and documentation. Industry experts note that professional tender preparation can be a game-changer, with services ranging from $1,845 for small responses to nearly $10,000 for large, complex construction proposals.

Major Contracts Awarded to Industry Leaders

Several landmark contracts have been awarded in recent weeks. John Holland Pty Ltd secured a US$220 million contract for a Sydney light rail project, including a 320-metre bridge over the Parramatta River. Design work begins this year, with construction slated for 2025.

On the defence front, CC Pines Pty Ltd of Oxford Falls landed two contracts worth $24.2 million to build United States Air Force Squadron Operations Facilities at RAAF Bases Darwin and Tindal. Completion is expected by late 2025.

Sydney Metro’s Martin Place Station and Precinct is also in the spotlight, having been shortlisted for the 2025 NSW Architecture Awards in both Public Architecture and Urban Design categories. The winners will be announced on June 20.

Government Policy Reforms Favour Local Industry

The Minns government’s procurement reforms, effective from September 2024, are set to boost local engineering and design firms. Key changes include:

• Lifting restrictions on local content, allowing agencies to prioritise NSW-based suppliers.

• Introducing an “If not, Why not” rule for contracts over $7.5 million, requiring justification for awarding to out-of-state firms.

• Redefining ‘value for money’ to include local employment and economic benefits.

• Establishing a Jobs First Commission to enforce these measures.

Industry analysts say these reforms could provide a significant edge for NSW-based businesses in upcoming government procurement rounds.

AI Set to Transform Planning and Design

In a move to streamline planning approvals, the NSW Government will soon fund councils to trial artificial intelligence solutions. Three platforms—DAISY, Archistar, and PropCode—will be available, with grants of up to $200,000 for single councils and $500,000 for collaborative projects. With 67% of local design and engineering firms already integrating AI, the sector is poised for rapid digital transformation.

Local Councils Greenlight Key Infrastructure Projects

Recent council meetings have yielded a flurry of infrastructure decisions. Federation Council approved the Howlong Heavy Vehicle Alternative Route and new load limits for Holbeach Street, while Inner West Council advanced projects including all-weather sporting surfaces, EV charging infrastructure, and traffic safety improvements.

Record Infrastructure Investment in State Budget

The 2025-26 NSW Budget earmarks over $370 million for road upgrades and logistics hubs, including $156 million for North West Sydney roadworks and $115.5 million for the Newcastle Logistics Precinct. Additional funds will support planning for future duplications and upgrades across key growth corridors.

Outlook: Opportunities Abound for Local Businesses

With a strong pipeline of tenders, major contract wins, and government reforms favouring local suppliers, NSW’s engineering and design drafting sector is set for a period of robust growth. Industry leaders advise firms to monitor tender portals, prepare for AI integration, and leverage new policy advantages to secure a share of the state’s booming infrastructure market.

For more updates on tenders and council decisions, visit the NSW Government eTendering portal and local council websites.