Five major construction companies will work together with SA Water to deliver the record $3.3 billion capital program over the next four years.
The capital program includes an unprecedented $1.5 billion investment, announced as a key initiative of the Housing Roadmap, to increase capacity of the water and sewer network through upgrades to pipes, pump stations and tanks to unlock a potential 40,000 new allotments across the state.
Major framework agreements for up to $600 million each have now been executed 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).
The new agreements represent contract extensions for all five contractors, who have applied their significant construction expertise on projects improving water and sewer services for South Australians as part of SA Water’s 2020-24 capital program.
Pre-construction work has already started to deliver critical water and sewer infrastructure required to build more houses.
Infrastructure projects will primarily target Adelaide’s northern growth front, including areas such as Angle Vale, Riverlea and Roseworthy to maximise the number of new homes enabled through this investment.
All five of SA Water’s major construction partners are set to play an ongoing role in delivering this critical growth infrastructure, with on-site investigations now underway.
Fulton Hogan Utilities, and McConnell Dowell and Diona, are undertaking work along Andrews Road in Munno Para, and Sunnydale Avenue in Gawler East, to inform the alignments for new underground trunk water and sewer mains.
Additionally, McConnell Dowell and Diona have established a stockpile of more than 500 large pipes in Virginia ready for installation in the coming months.
The scale of SA Water’s capital program means a number of minor framework agreements have also been awarded, with currently up to $262 million to be allocated over the four-year program.
Included in these agreements is work such as water main upgrades, rehabilitation of sewer infrastructure, and physical and electronic security like fencing and CCTV.
SA Water utilises these frameworks as a procurement arrangement that enables the sequential award of works to a supplier that are similar in nature. The supplier is incentivised to perform well by the opportunity to secure continuity of work.
SA Water is also establishing a dedicated panel of specialist pipeline contractors to support the volume of projects earmarked for delivery within its capital program.
These contractors will share the work to install new trunk water and sewer pipes that will enable construction of new houses, with SA Water’s major framework partners leading the initial tranche of growth infrastructure projects.
Other major projects to be delivered by the framework partners include upgrades to SA Water’s Bolivar Wastewater Treatment Plant to prepare it for future growth, and replacing large sections of the Morgan to Whyalla Pipeline.
SA Water has also recently awarded two-year contract extensions to engineering firms Aurecon and KBR, who will continue providing engineering, design and program management services across the utility’s capital program.
Quotes
Attributable to Nick Champion
Central to delivering SA Water’s record capital program is having a skilled workforce, and leveraging the vast experience the construction industry possesses.
Investing in our state’s water infrastructure will create hundreds of jobs that are fundamental to deliver the services that will enable growth and prosperity of our state.
We have an ambitious growth agenda and SA Water’s construction partners will play a key role in delivering the infrastructure needed to build network capacity and unlock new homes.
They’re poised and ready to begin building this foundational infrastructure that will benefit generations to come.
Attributable to Rebecca Pickering, CEO of Civil Contractors Federation SA
It’s now more important than ever to harness the knowledge and expertise of our civil contractors and work in partnership to deliver this critical infrastructure.
These major framework agreements are another vote of confidence in the industry’s capacity and capability to meet the needs of an unprecedented investment in South Australia’s water and sewer systems.
Our growing communities and future homeowners are relying on SA Water’s network and it’s time to get on the tools to ensure they can access these essential services.
This is a once-in-a-generation opportunity for the civil sector to build the vital housing infrastructure that will underpin the housing supply we so desperately need.
