NSW Engineering Sector Sees Surge in Government Contracts as Major Tenders Close This Week

SYDNEY - New South Wales engineering and design drafting businesses are facing a critical week as several high-value government tenders reach their closing dates, while recent contract awards reveal a robust pipeline of infrastructure investment across the state.

Major Tenders Close Within Days

Multiple engineering tenders worth millions of dollars are set to close between now and June 30, creating immediate opportunities for NSW businesses. Camden Council's design consultancy services for the Narellan Urban Forest project closes today, June 25, while the Head Design Consultant position for Sydney's Mandible Street Sports Precinct closes June 27.

A significant wellsite management and engineering support contract for NSW, encompassing preliminary project planning and engineering design, also closes June 27. The tender includes comprehensive technical and procurement support services, signaling major energy sector investment.

Maritime infrastructure maintenance contracts covering Sydney Harbour, Newcastle Harbour, Port Kembla and Port Botany are among the most substantial opportunities, with engineering and trades inspection requirements closing June 27.

Renewable Energy Sector Drives Growth

The NSW Government's renewable energy push continues to generate substantial contracts, with AEMO Services' Tender Round 6 for long duration storage projects seeking approximately 1 gigawatt of capacity. While project bids closed June 10, successful bidders won't be announced until December 2025 or January 2026.

Previous tender rounds have delivered significant results, with Tender Round 1 awarding 1,395MW of renewable generation projects and achieving generation prices approximately 40% lower than traditional contracts. Tender Round 2 successfully awarded 1,075 MW of battery energy storage and demand response projects.

Councils Award Multi-Million Dollar Contracts

Lithgow City Council has emerged as a major contractor, recently awarding several significant engineering projects. WSP Pty Ltd secured the largest contract for Wolgan Road Concept Design and Environmental Services at $5.96 million excluding GST in December 2024.

SNG Engineering Pty Ltd was awarded a $2.27 million contract for the Sweet Briar Sewage Pumping Station detailed design and construction in April 2025, while GHD Pty Ltd received $605,749 for technical expertise on the Wolgan Road project in January 2025.

Water Infrastructure Investment Accelerates

Sydney Water Corporation has issued a major Expression of Interest for Engineering, Procurement and Construction Management services as part of their Drinking Water Program. The program encompasses approximately 50 projects valued between $1 million to $255 million, including 150km of pipelines, 9 pump stations, and 12 reservoirs.

Narromine Water Treatment Plant represents another significant opportunity, with a concept design report tender for a 7.5 ML per day facility closing July 9, 2025.

Transport Sector Maintains Strong Demand

Transport for NSW released a Rolling Stock Network Acceptance Framework on June 18, 2025, establishing new processes for accepting rolling stock into the transport network. The agency continues procurement activities including business case writing services for the Western Sydney Freight Line.

Sydney Metro West project progression continues with multiple consortiums shortlisted for major contracts, including CPB Contractors & Lendlease for Stations Package West.

Government Budget Boosts Infrastructure Spending

The NSW Government's 2025-26 Budget, announced June 19, 2025, includes significant housing and infrastructure support measures. Key initiatives include extending tax concessions for build-to-rent housing developments indefinitely and releasing draft guidelines for works-in-kind agreements with developers.

The state maintains a $118.3 billion infrastructure commitment over four years, with the NSW Infrastructure Pipeline highlighting upcoming projects with minimum capital values over $50 million expected to come to market in the next 3-5 years.

Councils Report Strong Financial Performance

North Sydney Council's June 23, 2025 meeting noted May 2025 financial reports showing performance within budget parameters, with ongoing cost control efforts and expected savings in employee and contractor costs. Council fixed annual councillor fees at $29,950 and mayoral fees at $74,480.

Clarence Valley Council adopted comprehensive 2025/2026 Integrated Planning and Reporting documents on June 19, including "The Clarence 2035" Community Strategic Plan, setting direction for council activities over the next decade.

Industry Outlook Remains Positive

The engineering and design drafting sector continues to benefit from sustained government investment across renewable energy, transport infrastructure, water systems, and municipal services. Transport for NSW maintains prequalification schemes including the Digital Engineering Services scheme, managed until September 30, 2027.

With the current tender pipeline indicating sustained demand across multiple disciplines and project scales, NSW engineering businesses face significant opportunities in the coming months as infrastructure investment maintains momentum across the state.