Major contractors awarded seven year SA road maintenance contracts

Four major contractors have been awarded maintenance contracts for a total of 23,000 kilometres of the South Australian Road Maintenance network.

The contracts will run for an initial seven years with provisions for a further six years. This extends the State Government’s 20 year partnership with industry to maintain the road network.

Contracts have been awarded in four zones:

  • Adelaide Metropolitan: DM Roads
  • Regional South: Fulton Hogan
  • Regional North: DM Roads
  • Outback: Lendlease Boral Joint Venture

 

Now around 60 per cent of road maintenance services in the state are outsourced and under the new model, all road maintenance will be delivered in partnership with industry.

Minister for Transport, Infrastructure and Local Government Stephan Knoll said these new contracts will allow the state to leverage the expertise and efficiency of industry to deliver better and safer roads for South Australian motorists.

“We have 23,000 kilometres of the road network in South Australia and our priority is keeping our roads as safe as possible for motorists,” he said.

Of the 23,000 kilometres of road network in South Australia, 14,000 kilometres are sealed and 9000 kilometres are unsealed.

“DM Roads and Fulton Hogan have been awarded contracts to maintain our road network under the former government in 2013 and 2011 respectively,” Mr. Knoll said.

“These companies have been maintaining tens of thousands of kilometres of South Australia’s road network over many years and have been employing thousands of South Australians over that time.”

Performance indicators will be included in the new contracts to target and monitor use of local small and medium enterprises. The contracts will also require demonstration of achievement of Industry Participation Policy targets and compliance with subcontractor principles. Financial consequences will occur if performance thresholds are not met.

“Through these new contracts we have been able to get a better bargain for taxpayers to drive their dollar further,” Mr. Knoll said.

The contracts are for up to 13 years and having four dedicated areas is expected to allow contractors to focus on providing the best possible outcomes for their area.

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