Five companies appointed to deliver $1.6bn SA Water capital works

Monica Gameng   |   June 30, 2020

SA Water is getting on with the delivery of its $1.6 billion capital works program over the next four years with five major companies signed to undertake various projects that will help improve water and sewerage services across South Australia.

“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.

“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,” SA Water Chief Executive David Ryan said.

Major frameworks agreements – valued at about $500 million each – were signed with the joint venture between Fulton Hogan Utilities, John Holland and Guidera O’Connor as well as the joint venture between McConnell Dowell and Diona.

“We are pleased to be given the opportunity to build on our strong relationship with SA Water, following the Murray Bridge wastewater treatment plant project,” John Holland Executive General Manager – Infrastructure Andrew English said.

“This framework will provide continuity of work for our local delivery teams, open up new opportunities for South Australians and build confidence back into the construction industry,” Diona State Manager Paul Mathews said.

“We are thrilled to partner with Diona for this new joint venture. I look forward to our teams working together to deliver this new major framework partnership model, bringing McConnell Dowell’s industry-leading expertise in project delivery and collaborative governance,” McConnell Dowell general Manager SA & WA Mario Russo said.

Over the next four years, SA Water and its partners will deliver various capital works including dam upgrades, water tank refurbishments, water main replacements, sewerage network upgrades and water treatment process changes across the State’s metropolitan and regional areas.

SA Water’s partners are expected to begin delivering works from the first week of July.

“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,” Mr Ryan said.

The delivery of SA Water’s capital works program will provide a boost in the local economy and industry as they recover from the impacts of COVID-19.

Over the coming months, about six minor framework agreements will also be awarded to deliver smaller work programs. These frameworks will be valued between $8 million and $44 million, with a four-year contract period.

The minor framework agreements will include works such as regional water main replacements, rehabilitation of sewerage assets, and physical and electronic security like fencing and CCTV.

A tender for minor civil works is also active and suppliers from across South Australia will have the opportunity to tender for smaller works valued at about $500,000, with an estimated annual spend of up to $10 million across the panel.

“Robust infrastructure planning and delivery will play an important role in immediate stimulus to the economy and it supports long-term economic growth.

“SA Water’s model provides South Australian businesses across the supply chain the opportunity to work and participate in the frameworks, which will see the state prosper,” Civil Contractors Federation of South Australia’s Associate Director Industry and Government Relations Melissa Ekberg said.

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Source: SA Water; McConnell Dowell; John Holland

Monica Gameng
As Felix's Marketing Assistant since 2015, Monica is responsible for researching and sharing new and progressing projects within the construction and mining sectors in Australia. It's no surprise that Monica has her finger on the pulse of Australian major projects given she has produced more than 1,000 posts. She truly is an industry expert.
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