By Darian Macey, August 28 2025
After three years of industry speculation, Defence has finally named the four firms that will shape the next era of its Estate Works Program.
After a three‑year procurement process under Defence’s Base Services Transformation program, the Department of Defence’s Service Delivery Division has appointed three firms as Project Delivery Service (PDS) contractors for its Estate Works Program. The winners are Aurecon, The APP Group and Mott MacDonald, who will manage and deliver facilities projects across Defence bases nationwide for the next six years under the direction of JLL as the National Program Services (NPS) contractor. This marks a significant change to the delivery model that since 2014 relied on two incumbents (Aurecon and JLL) under Cushman & Wakefield.
Aurecon, a long‑time partner to Defence, has been re‑appointed after a strong campaign. The APP Group, a project management consultancy recently acquired by Bureau Veritas, makes its debut on the panel. Mott MacDonald, a global engineering firm, also joins as a new PDS provider. The appointments were finalised in late August 2025 and signal both continuity and transformation in Defence’s approach to delivering base infrastructure projects.
The Estate Works Program and the PDS Role
The Estate Works Program (EWP) is Defence’s portfolio of medium and minor capital works that sustain and upgrade the Defence estate. According to Defence, the EWP “delivers facilities and infrastructure maintenance projects aimed at restoring or sustaining capability” with a focus on safety, compliance and asset upkeep. Typical EWP projects range from small works under A$100k up to works of about A$10–15 million in value, addressing everything from building refurbishments and utilities upgrades to road repairs and environmental remediation. Crucially, the program is designed to generate opportunities for small‑to‑medium enterprises (SMEs) and Indigenous businesses, encouraging their participation in Defence infrastructure delivery.
Project Delivery Service contractors (PDS) act as Defence’s delivery partners for the EWP. In practice the PDS firms serve as Defence’s project managers and integrators: scoping planned works, engaging design consultants and contractors, overseeing construction and ensuring projects are delivered on time and within budget. Rather than Defence managing hundreds of individual minor projects, the PDS contractors provide the program management capability to execute these works across dozens of sites. Under the outgoing model, Aurecon and JLL (branded as “Augility” for Defence) have fulfilled this role since 2014, together delivering hundreds of projects annually across more than 270 Defence sites. The new appointments expand this panel to three companies and come as part of the broader Base Services Transformation (BST) – a reform initiative launched in 2022 to modernise Defence’s base services contracts. The BST program has been a lengthy endeavour (hence the three‑year procurement period) aimed at overhauling everything from maintenance and living services to capital works delivery.
Notably, historical spending on the EWP has grown dramatically over the past decade, reflecting its increasing importance. Annual EWP project volumes have roughly quadrupled – rising from about A$250 million per year a decade ago to nearly A$1 billion per year in recent years. This growth, fuelled at times by stimulus injections (such as a A$300 million works package in 2020 as part of COVID‑19 recovery), underscores why Defence is reshaping how it delivers the program. After some slowdown during 2022–23 (amid a Strategic Review), the EWP is back in an upswing with record project releases in 2025 – making the timing right for introducing new delivery partners. Each of the newly appointed PDS contractors will be instrumental in executing this roughly A$1 billion per year program and ensuring Defence facilities remain safe, secure and fit for purpose to support Australia’s strategic requirements.
Aurecon – Trusted Partner Since 2014
Aurecon’s re‑appointment was widely expected, given the firm’s track record as a PDS since 2014 and its 60‑plus‑year history working with Defence. The international engineering and advisory company has effectively been Defence’s “in‑house” delivery arm for a large share of estate works, often handling both design and project management internally. Under the new contract – signed this month – Aurecon will continue in this role for another six years, affirming its position as one of three preferred suppliers delivering the EWP. “It is a crucial time for Defence, for Australia and for industry – and we are deeply committed to working alongside Defence to develop and manage its estate for the term of this contract,” said Damon Howes, Aurecon’s Industry Director for Defence & National Security. He added that Aurecon is stepping forward with a highly experienced team that “bring[s] genuine enthusiasm for collaboration and shared success as we navigate capital investment, and capitalise on innovation, modern technology, digitalisation and workforce capability opportunities.”
Despite industry calls for greater separation of design and project management functions, Defence is expected to allow Aurecon to continue delivering design services under its new PDS contract. This has been a point of contention for some time, with pressure evident from questions repeatedly raised at Collab X over the past two years. For Defence, however, Aurecon’s embedded design capability remains a proven asset in sustaining the pace and quality of delivery across the Estate Works Program.
The firm’s deep bench of over 4,500 staff (including thousands with Defence project experience) and its national network of more than 750 subconsultants – many of them regional SMEs, Indigenous businesses and veteran‑owned firms – position it well to deliver at scale. “As an Australian employee‑owned company, Aurecon’s appointment reflects Defence’s commitment to industry sovereignty and will enable Defence to deliver critical infrastructure upgrades… at pace, supporting capability readiness while also driving meaningful benefits for local communities,” Aurecon’s Chief Executive for Australia, Todd Battley, noted in the announcement. He emphasised that the partnership is grounded in purpose and trust: “We do this in a way that uplifts the communities we work in; embracing innovation and sustainability at every turn.”
Having helped Defence deliver over 1,800 estate projects in the past 11 years, Aurecon brings continuity to the EWP even as the overall framework evolves. The company’s long‑running involvement means many of Defence’s processes, templates and supplier relationships for estate works have Aurecon’s imprint. This re‑appointment suggests Defence values that continuity of knowledge. It also signals that Aurecon will play a lead role in mentoring and transitioning new PDS entrants, sharing lessons from a decade of delivery. With Defence confirming a six‑month handover period from the old model to the new (August 2025 – January 2026), Aurecon’s ongoing presence should help stabilise the program through the change‑over.
APP Group – Bureau Veritas Company Joins the Panel
A major addition to the PDS line‑up is The APP Group, an Australian project management and consultancy firm that was acquired by Bureau Veritas in 2023. APP brings more than 36 years of experience partnering with Defence on various projects, but this is its first time in a national delivery partner role for the Estate Works Program.
“For over 36 years, The APP Group has proudly partnered with the Department of Defence. We are excited to expand that relationship by supporting the transformative Base Services program,” said Mathew Bradley, APP Group’s Chief Executive for Defence & Security. The PDS contract is indeed part of the Base Services Transformation (BST) Program, which Bradley characterised as transformative. Under BST, on‑base services like maintenance and sustainment are being overhauled, and APP will be at the forefront of delivering the infrastructure component of this transformation. APP’s remit covers a wide range of facility types, reflecting the diversity of Defence’s estate – training and operational areas, industrial sites, plant rooms, workshops, healthcare facilities, laboratories, office spaces, sports facilities and civil and in‑ground infrastructure are all in scope.
Bradley highlighted the challenge and opportunity of this diversity: “Defence estates are incredibly diverse and complex; our role is to provide innovative, industry‑leading solutions that ensure infrastructure remains robust, adaptive and mission‑ready.” To tackle this, APP has assembled a team of specialist partners. Notably, APP is a member of the DECNet Pro industry network, and it has drawn in fellow DECNet Pro members to support the PDS contract. Global design firm HDR and cost consultancy WT Partnership are both part of APP’s delivery consortium (operating under APP’s banner). This means HDR and WT have also “landed appointments” of their own within APP’s PDS work‑share – for example, WT is providing dedicated cost management and quantity surveying services as a key member of APP’s team. “WT has a long history of supporting Defence… Our role will focus on bringing rigour, transparency and independent assurance to cost planning, risk management and lifecycle value, helping APP deliver critical Defence projects on time and on budget,” said Gavin Balharrie, WT’s National Defence Sector Lead.
The inclusion of WT and HDR leverages additional expertise to bolster APP’s delivery capacity. “We are proud to be part of The APP Group’s delivery team on this contract, which will play a vital role in ensuring Defence has the facilities and infrastructure it needs for the future,” Balharrie noted, emphasising WT’s focus on “independent advice and robust cost management that inspires confidence, improves value and supports Defence’s long‑term objectives.” Their involvement exemplifies the collaborative model Defence is encouraging – combining large firms and niche specialists to get the best outcomes.
Mott MacDonald – New Entrant with Global Experience
The third PDS contract has been awarded to Mott MacDonald, marking the firm’s first major delivery partnership with Australian Defence. Mott MacDonald is a global engineering, management and development consultancy with extensive defence experience in the UK and US, which likely helped its bid. Defence announced Mott MacDonald’s selection on 21 August 2025, noting the company was chosen for its “proven global experience and deep domain knowledge in defence infrastructure”.
By bringing in Mott MacDonald, Defence gains a contractor with international bench strength and innovative practices. “The Defence Estate is a critical combat enabler and must be equipped to meet operational and capability requirements, now and in the future,” the company stated – highlighting that the new base services contracts are designed to be flexible and scalable as strategic needs evolve.
Mott MacDonald’s Australia Managing Director, Frances Badelow, framed the PDS win in terms of broad nation‑building impact. “The new Base Services contracts [are] a generational opportunity to upskill Australian industry and communities, and we’re committed to creating lasting local impact by supporting jobs, businesses and community development,” Badelow said. “We’re looking forward to working as part of Defence’s team of teams, bringing our collaborative, innovative and technically excellent approach to build a capable, diverse and resilient supply chain that supports Defence’s base services and strengthens communities across Australia.” This ethos aligns with Defence’s emphasis on social procurement and local industry involvement. Mott MacDonald has signalled it will implement a Defence Industry Participation Plan to engage under‑represented groups and will focus on simplifying access for small businesses through transparent procurement.
The appointment is expected to create jobs for local businesses, veterans, Defence families and Indigenous Australians – a point the firm has been keen to make. “It also provides opportunities for small and medium‑sized businesses to contribute to upgrading and maintaining Defence facilities,” Badelow noted. This speaks directly to the opportunity for SMEs and Indigenous enterprises: as PDS contractor, Mott MacDonald will be issuing and managing numerous subcontracts for design, construction and services, many of which can be picked up by smaller local firms.
JLL’s New Role in National Program Services
While JLL is not a PDS contractor anymore — it will become the National Program Services (NPS) provider for the Estate Works Program. In late August 2025, Defence awarded JLL a six‑year contract to coordinate and steer the $900 million‑a‑year national infrastructure pipeline, while providing strategic advice on risk, investment prioritisation, and project development. This appointment marks a significant evolution in JLL’s 11-year relationship with Defence — shifting from hands-on project delivery to a central, advisory and aggregation role, ensuring tighter alignment across the nation rather than discrete project silos. “The transition from PDS to NPS is going to be challenge, however with the Estate Works Team and new PDS contractors APP, Mott MacDonald and Aurecon it should be fun!” stated JLL’s Warwick Freeman on LinkedIn.
Ongoing opportunity for Indigenous businesses
Over the years, the EWP has been a vehicle for Indigenous contractors’ growth (leveraging set‑aside procurement provisions). All three PDS firms have committed to continue this focus on Indigenous participation and regional SME engagement. For example, Aurecon’s record includes 340‑plus contracts awarded to 46 Indigenous businesses since 2016, and JLL (the outgoing provider) had 39 per cent of its EWP spend going to Indigenous companies by 2020–21 – a legacy the new contractors are expected to build on.
A New Era for Defence Infrastructure Delivery
The appointment of Aurecon, APP and Mott MacDonald as PDS contractors is a pivotal development for the Defence infrastructure sector. It concludes a protracted procurement and signals Defence’s confidence in these three firms to deliver a core program estimated in the hundreds of millions of dollars of projects per year. For the broader industry, this outcome has several implications:
- Broader participation: After a decade of delivery concentrated in two companies, the work will now be spread among three, including two new entrants. This could mean more opportunities for subcontractors and consultants, as each PDS contractor brings its own supply chain and partnering approach. The inclusion of firms like APP and Mott MacDonald (alongside Aurecon) may also spur healthy competition and innovation in delivery methods.
- Continuity versus change: Aurecon’s re‑appointment provides continuity – leveraging its deep institutional knowledge – while the addition of APP and Mott introduces change. JLL’s departure (after 11 years in the role) is significant, as JLL/Augility had a strong project management focus and a large network of subcontractors. Industry watchers will be keen to see how the newcomers fill the gap and whether JLL’s subcontractors (and staff) transition to the new arrangements. Defence has planned a six‑month transition period to transfer knowledge and pending projects to the new PDS teams, reducing the risk of disruption.
- Regional/SME engagement: All three contractors have underscored commitments to local industry. The expectation is that SMEs, regional contractors and Indigenous businesses will see continued or even expanded opportunities under the new panel. “With bases located in many regional areas, this appointment will create jobs for local businesses… and provides opportunities for SMEs,” Mott MacDonald noted of the BST program. Aurecon similarly highlighted its network of regional and Indigenous partners. For small contractors, maintaining those avenues is crucial – the EWP has been a steady source of work across the country, often enabling smaller firms to build Defence project experience.
- Strategic alignment and innovation: The Base Services Transformation context means these PDS contracts aren’t just business‑as‑usual renewals; they are part of a larger reform to make Defence’s estate services more agile and modern. We may see the new contractors introduce digital project management tools, innovative contracting practices or sustainability initiatives in line with BST objectives (for example supporting Defence’s environmental and energy goals). Frances Badelow’s reference to “Defence’s environmental and digital transformation goals” hints that Mott MacDonald will bring new ideas on that front. Over the next few years the sector could benefit from these innovations as lessons learned are shared and potentially adopted more widely.
- Industry upskilling: As Defence spending on infrastructure ramps up (with the recent Defence Strategic Review calling for enhanced capability), having three capable PDS partners positions the industry to handle a surge of minor works concurrently. Badelow called the new contracts a “generational opportunity to upskill Australian industry”, suggesting that these programs will train a new cohort of project managers, engineers and contractors in how to deliver Defence projects at scale. This capacity‑building could have spill‑over benefits, raising the bar in project delivery standards across the board.
Overall, the consensus in the defence infrastructure community is one of cautious optimism. July’s record project release was a positive signal, injecting much‑needed work into the industry. The pipeline of base upgrade projects is robust, and now the mechanism to deliver them is secured for the next six years. There is, naturally, a mix of excitement and uncertainty in the sector – excitement at the volume of work and the chance to work with new prime contractors, uncertainty in how the new model will operate and whether all the kinks of transition will be worked out smoothly. But what is clear is that Defence is committed to its estate. The infrastructure of bases – from barracks and airfields to training ranges and ports – is recognised as a critical enabler of Defence capability, and investment in it is set to continue at high levels.
For SMEs and Indigenous businesses, the message is encouraging: the new PDS contractors are explicitly tasked with engaging a diverse range of suppliers and sustaining the momentum of Indigenous procurement successes. Programs like the Estate Works Program will continue to be entry points for smaller players to win Defence work and grow alongside major firms. And for the big end of town, the appointments represent a shake‑up that could reconfigure partnerships and subcontracts: companies that perhaps worked under JLL may now align with Mott MacDonald or APP, for example. It’s a reminder that Defence contracts are never static and incumbency cannot be taken for granted – but also that new opportunities will arise for those positioned to seize them.
In sum, Defence’s Service Delivery Division has charted a path forward for delivering the Estate Works Program that blends the old and the new: Aurecon’s proven capability, APP’s program management pedigree (boosted by Bureau Veritas) and Mott MacDonald’s global expertise. Together, these three will shape the next chapter of Defence estate upgrades. As this new model gets underway in 2026, success will be measured in both tangible outcomes – upgraded bases, modernised facilities, on‑budget projects – and intangible benefits like stronger local industry capacity and innovation in delivery. If all goes to plan, Defence will have a modernised support infrastructure for its personnel, and Australian industry will have grown in the process. The next 6–12 months are pivotal as the outgoing PDS arrangements wind down and the new contractors ramp up, but the sector appears ready. In the words of Damon Howes: “we are excited to be part of this transformational journey that supports Defence readiness and creates broad social and economic benefits.”
Author: Darian Macey
Darian is a former Engineering Officer with the RAE with tertiary qualifications in Engineering and Project Management. He is a leading practitioner within Australia's NSI sector with previous employment in Government, project management and building contractor organisations.
