Instead, the BESS industry is now competing within a much broader local infrastructure boom. There is severe, sustained competition for skilled civil and electrical contractors, specialised logistics, and critical long-lead electrical equipment, such as high-voltage transformers and switchgear.
In this dynamic environment, the traditional assumptions of project planning, where costs predictably declined and rigid fixed-price contracts ruled, are no longer fit for purpose. A procurement strategy built purely around squeezing the lowest capital cost out of a supplier often results in rigid contracts filled with hidden risk premiums.
In response, forward-thinking procurement teams are evolving from a transactional sourcing function into a more strategic part of project delivery.
The case for early works agreements
One of the most effective ways to navigate a dynamic market is shifting how and when we engage with the supply chain. Historically, projects sought to lock in every package at a single point in time.
