SA Water will collaborate with five major companies to deliver its $1.6 billion capital program over the next four years, utilising their significant construction expertise on water and sewerage projects.
Major framework agreements for up to $500 million each were signed between SA Water and Fulton Hogan Utilities, John Holland and Guidera O’Connor (as a joint venture), and McConnell Dowell and Diona (as a joint venture), which will see packages of work awarded progressively if rigorous performance standards are maintained.
SA Water Chief Executive, David Ryan, said the major partners will begin delivering projects from the first week of July.
“Each of our new major framework delivery partners brings skills and experience they will share with our people as they co-manage programs of works, to ensure our customers benefit from improved service reliability and quality,” Mr Ryan said.
“Combining leading construction sector expertise with the design, project management and water industry expertise of SA Water and our front-end engineering and client organisation partner KBR and Aurecon, who have also signed on for the next four years, will ensure we continue to make prudent and well-rounded decisions.
“Together, we will deliver a diverse portfolio of projects over the next four years which includes dam upgrades, water tank refurbishments, water main replacements, sewerage network upgrades and water treatment process changes, with work spread across both the metropolitan area and regions.
“Investing in water networks has wide reaching and long-term benefits, from the jobs created during construction, to the sustainable prosperity of a business able to access fit-for-purpose water, and the ongoing health and social outcomes that clean water and reliable sanitation services embed across generations.”
Associate Director Industry and Government Relations of the Civil Contractors Federation of South Australia, Melissa Ekberg, said the rollout of SA Water’s new capital program had come at the right time to provide stimulus to the industry as it struggles with the impacts of COVID-19.
“Robust infrastructure planning and delivery will play an important role in immediate stimulus to the economy and it supports long-term economic growth,” Ms Ekberg said.
“SA Water’s model provides South Australian businesses across the supply chain the opportunity for work and to participate in the frameworks, which will see the state prosper.”
Up to six minor framework agreements will also be awarded in coming months to cover smaller work programs, with the potential for between up to $8 million and up to $44 million of work to be allocated to the successful tenderers over the four-year period.
Included in the minor framework agreements are activities such as regional water main replacements, rehabilitation of sewerage assets, and physical and electronic security like fencing and CCTV.
A tender is also currently active for a minor civil works panel, with suppliers from around the state sought for smaller works up to $500,000 at a time, with an estimated annual spend across the panel of up to $10 million.