Five construction companies signed for $3.3bn SA Water capital program

SA Water will be working with five major construction companies to deliver its record $3.3 billion capital program over the next four years. 

This capital program includes a $1.5 billion investment, which is a key initiative of the Housing Roadmap. This significant investment will help increase capacity of the water and sewer network through upgrades to pipes, pump stations and tanks, ultimately unlocking up to 40,000 new allotments across South Australia. 

The major framework agreements, valued at $600 million each, have been 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). 

“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 akey 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,” Minister for Housing and Urban Development Nick Champion said. 

These agreements extend the contract terms for all five construction companies who have showcased their expertise on previous projects that improve water and sewer services as part of the SA Water 2020-24 capital program. 

Pre-construction works are now underway to deliver critical water and sewer infrastructure needed to build more houses. These projects will mainly focus on Adelaide’s northern growth areas including Angle Vale, Riverlea and Roseworthy to maximise the number of new homes constructed through this investment. 

Onsite investigations are now being carried out by the five major construction partners, who are all essential in the delivery of the critical infrastructure projects. 

“It’s now more important than ever to harness the knowledge and expertise of our civil contractors and works 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,” Civil Contractors Federation SA CEO Rebecca Pickering said. 

Fulton Hogan Utilities alongside McConnell Dowell and Diona are undertaking works along Andrews Road in Munno Para as well as Sunnydale Avenue in Gawler East to inform the alignments for new underground trunk water and sewer mains. 

McConnell Dowell and Diona will also be establishing a stockpile of over 500 large pipes in Virginia, which will be ready for installation in the coming months. 

“SA Water’s capital delivery program is integral to securing a sustainable and resilient water future for South Australians and MDJV is proud to be a trusted partner in delivering these essential services. We remain committed to driving value for money across the program through a focus on safety, innovation, environmental sustainability, and positive social and economic outcomes,” McConnell Dowell Diona JV Framework Manager Marc Doyle said. 

“Congratulations to our team, and a heartfelt thank you to SA Water for extending our partnership. Collaboration is at the core of our business, and the success of SA Water’s 2024-28 capital delivery program will be a testament to this teamwork. We eagerly anticipate furthering the achievements of our partnership and continuing to deliver essential water infrastructure for communities throughout South Australia,” McConnell Dowell Australia Managing Director Mario Russo said. 

With the scale of SA Water’s capital program, about $262 million has also been allocated for minor framework agreements. This includes water main upgrades, rehabilitation of sewer infrastructure, and physical and electronic security such as fencing and CCTV. 

These frameworks serve as a procurement arrangement that will enable the successive awarding of works to suppliers that are similar in nature, where the supplier is incentivised to perform well by the opportunity to secure continuity of work. 

In addition, SA Water is establishing a dedicated panel of specialist pipeline contractors to support the number of projects earmarked for delivery within the capital program. These contractors will share the work to install new trunk water and sewer pipes to allow for the construction of more houses – with the major framework partners leading the initial tranche of infrastructure projects. 

Other works to be delivered under the capital program include upgrades to SA Water’s Bolivar Wastewater Treatment Plant to prepare it for future growth as well as replacing large sections of the Morgan to Whyalla Pipeline. 

Recently, SA Water has also awarded a two=year contract extension to engineering firms Aurecon and KBR for the provision of engineering, design and program management services across the capital program. 

Source: Premier of South Australia – Media Releases; South Australian Business Chamber; Utility Magazine; McConnell Dowell