By Ralph Steffens

Chief Operations Officer

NBN Co

Successfully managing and rectifying defects is an integral part of building any major construction project, let alone Australia’s largest national infrastructure project.

The front page splash in today’s Australian seems to suggest that defects in the construction process are unique to NBN Co. and that the volume of defects is in some way startling.

The newspaper also fears this is the result of a change in construction workflow processes whereby a neighbourhood with fibre can now be declared “Ready for Service” (i.e. RSPs can offer NBN services can be supplied to end-users) before the “Practical Completion” of construction work.

Old process: Design – Build -- Practical Completion (all minor defects cleared) – RFS -- Available to RSP

New process: Design – Build – RFS -- Available to RSP -- Practical Completion (all minor defects cleared)

The claims are incorrect.

Let’s unpack them:

1. VOLUME

First of all, volume. Is the volume of defects we have faced a concern?

Even if the figure reported by the Australian was true, it would not be a concern. As it turns out the number has been grossly misrepresented. The actual number of defects is substantially lower than that reported by the newspaper.

2. NATURE

Secondly, is the nature of the defects identified a concern?

No.

A “defect” can be categorized as anything from:

· fibre needing to be respliced;

· to cable in an aerial build needing to be located farther away from the power lines;

· to the lawn on a nature strip not being replaced correctly;

· to a missing label on a fibre tray;

· to cables needing to be coiled more neatly inside a pit awaiting service;

· to the reinstatement of part of a concrete footpath to the expected quality;

The overwhelming majority of defects are minor and do not touch upon a family’s ability to receive broadband in the home.

Identifying defects large and small is an integral part of a quality process. Their discovery is a sign that the quality process is working and that the lessons can be applied across the project to improve the construction process as the rollout ramps up.

3. RISKS

Thirdly, is the quality of the network – and people’s broadband connection in the home – being put at risk by these defects?

No.

No area can be declared “Ready for Service” and the construction process in that area cannot be regarded as having achieved “Practical Completion”, until major defects (e.g. resplicing) have been rectified.

It is only after “Practical Completion” has been achieved – and major defects have been fixed – that the construction companies receive final payment.

If only minor work still needs to be done in a local area (e.g. a nature strip needs to be replaced or a label need to be attached) then that area can be declared “Ready for Service” ahead of “Practical Completion” taking place.

That allows NBN Co and the RSPs to begin offering broadband services to end-users.

In conclusion, all major telco rollouts – and any project large or small – will face a level of defects.

What matters is that they are identified, rectified in a timely manner and lessons are learnt and applied across the project.