Barton National Security Office Precinct lands Lendlease as builder for $1 billion project

Finance Minister Katy Gallagher said experienced builder Lendlease Construction was the successful bidder following a competitive tendering process and will begin work on the large project in early 2025.

The National Security Office Precinct, which will house several national security agencies including the Office of National Intelligence and parts of the Department of Foreign Affairs and Trade, will be built at the prime York Park location on State Circle and Brisbane Avenue in Barton.

Discussions on the proposal have been underway since 2020, driven by the need to address a critical shortage of accommodation for key intelligence agencies.

But the existence of the highly secretive project was only revealed in the October budget when Treasurer Jim Chalmers announced the "really important" investment.

While the government has not made the price tag public, property industry experts warn it is likely to amount to well over $1 billion.

Senator Gallagher said the appointment of Lendlease was "an important step in a major project for the ACT that will support jobs and provide accommodation for the public service".

In an address following last October's budget, Dr Chalmers said the government was determined to ensure that spending on the precinct was effective.

"We need to make sure that we have got world-class facilities for our national security agencies," he said.

"Obviously, we're aware of the history of some of these big projects and it's not talking out of school to say that the focus that Katy [Gallagher] and I have brought to some of these discussions and some of the others is to make sure we get value for money."

The first stage of the project will involve the construction of a multi-level car park with more than 1000 spaces adjacent to the John Gorton Building in Parkes.

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It will provide car parking for those currently using the the York Park site as well as visitors to nearby institutions including the National Gallery of Australia, the National Portrait Gallery and the future Ngurra Cultural Precinct.

Work on the car park is expected to commence in the middle of this year and be completed in late 2024.

The timing of works on the York Park precinct, which is expected to generate hundreds of jobs during the construction phase, could be fortuitous.

Construction costs soared in recent years as disruptions to global supply chains and pandemic-related travel restrictions caused shortages of materials and labour and forced up the expense of both.

But improvements in production and transport and slowing economic activity through this year and 2024 is expected to improve supply chains and loosen the labour market, easing price pressures.

The appointment of Lendlease to the project follows the collapse of prominent Canberra-based construction company PBS Building.

PBS went into voluntary administration on March 7, costing 180 people their jobs and leaving more than 1000 creditors out of pocket.

But Senator Gallagher said Lendlease was "an established global construction company that has been delivering projects across Australia for over 70 years".

Last month it announced a half-year profit after tax of $105 million and had a $121 billion pipeline of projects worldwide, including the $3.1 billion Circular Quay redevelopment in Sydney.

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