Contracts awarded for South Australian road maintenance

The new contracts extend the Government’s 20-year partnership with industry to maintain our road network.

The former Labor government outsourced the majority of the maintenance of South Australia’s road network in 2006, 2011 and 2013.

Currently, around 60 per cent of road maintenance services are outsourced and under the new model, all road maintenance will be delivered in conjunction with industry to take advantage of their expertise.

The contracts have been awarded for four zones:

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

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

“We have 23,000 kilometres of road network (14,000km sealed and 9,000km unsealed) in South Australia and our priority is keeping our roads as safe as possible for motorists.

“These companies are experts in road maintenance and employ thousands of South Australians either under existing contacts or on past projects.

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

“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.

“The new contracts include key performance indicators that specifically target and monitor local SME use and require demonstration of achievement of IPP targets and compliance with the subcontractor principles, with financial consequences should performance thresholds not be met.

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

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

DM Roads

DM Roads currently services 21 road maintenance contracts across Australia – 33,000km of sealed and unsealed roads.

Since 2013, DM Roads has delivered road maintenance in the Eyre Flinders, River Mallee and Mid North regions of South Australia across 8,600km of the network.

Parent company Downer directly employs 3,600 South Australians, contributing $959 million to the local economy in 2019, and sub-contracts with 1,594 local suppliers.

Fulton Hogan

Fulton Hogan employs hundreds of South Australians, contributing more than $350 million per year to the local economy across its civil maintenance infrastructure services, utilities and construction activities.

Nationally, Fulton Hogan delivers more than $500 million of road maintenance works annually, with over 2,000 direct employees involved in asset management and road maintenance.

Since 2011, Fulton Hogan has had the Adelaide North Metropolitan Maintenance Contract.

Lendlease Boral Joint Venture

The Lendlease Boral Joint Venture (LLBJV) brings shared expertise on major road projects across Australia, including the recently-completed $867 million Northern Connector project in Adelaide’s north, which created 480 jobs each year during construction.

Lendlease maintains more than 13,000km of roads in metropolitan, rural and remote parts of Australia, including maintenance of South Australia’s Port River Expressway Rail/Road Bridge.

Boral has an extensive history of providing asphalt paving, pavement construction and maintenance services across South Australia.

View the Media Release here

7th July 2020 – Media Release