High-quality affordable housing will soon be delivered to market quicker across metropolitan Adelaide thanks to an initiative to simplify the construction tendering process for government led residential projects.
From this month, at least 10 construction companies will join a pre-approved list of builders to work on government developments.
The new Builders Panel ensures Renewal SA can select the right builder for the right job without the need for a protracted tender and will reduce the time of getting a house to market by several months.
The revised procurement model has been set up following a recent statewide tender and applies to both affordable and social housing delivered on government sites.
Twenty-five affordable rental homes at Playford Alive will be the first homes procured using the builder panel.
From concept to starting work onsite, timeframes should be reduced with approval and construction documentation now being completed by the builder. Projects will be delivered via a builder-supplied design or by a Renewal SA concept design provided to the builder.
Builders listed on the panel will work within two categories:
- House and land packages sold on Renewal SA projects where the land purchaser enters into a Housing Industry Association (HIA) contract directly with the builder.
- Projects where Renewal SA direct delivers houses using a HIA contract with the chosen builder.
Builders will agree a service deed with Renewal SA to verify their capacity to undertake projects they are experienced in and will remain on the panel for three years. A secondary procurement process will be conducted for delivery on a project-by-project basis.
Renewal SA Acting Executive Director Residential Project Delivery and Assets, Peter Gatsios, said the panel will be mandatory for all builders working on Renewal SA residential engagements in the metro region, which stretches from Gawler in the north down to Aldinga in the south.
“Builders were asked which categories of dwellings they have experience in, their preferred region to work in and to supply examples of previously completed projects” he said.
“We want to make working with the government easier for builders and improve the speed to market and supply of housing.”
“We anticipate cost savings for all parties through less administration, volume discounts, competitive pricing and more. With a panel agreement in place, a project team can quickly access pre-screened and categorised builders to quickly allocate a shortlist of suitable, keen candidates.”
“Builders will not have to provide the same information on multiple tenders and will only be asked to tender on work that suits their business.”
Establishing long-term relationships with approved suppliers or service providers can mitigate risks associated with quality, delivery and performance he said.
Efficiencies will be improved by:
- reducing the number of tenderers submitting per project
- reducing the amount of administration and assessment require by pre-qualification
- standardising the agreements/contractual arrangements between builders and Renewal SA
- standardising the management of contractors thereby setting clear expectations of responsibilities
- addressing the housing emergency by greatly reducing the amount of time to get from a project scope to dwelling completion.