SA streamlines builder selection for housing

High-quality affordable housing will soon be available more quickly across metropolitan Adelaide, thanks to a new initiative that streamlines the construction tendering process for government-led residential projects.

Starting this month, at least 10 construction companies will join a pre-approved list of builders for government developments.

Builders panel implementation

The new builders panel allows Renewal SA to select the appropriate builder for each project without lengthy tender processes, reducing the time to market by several months.

This revised procurement model, resulting from a recent statewide tender, applies to both affordable and social housing on government sites.

See LinkedIn post here.

First projects under the new system

Twenty-five affordable rental homes at Playford Alive will be the first to use the builder panel.

Timeframes from concept to construction start will be reduced, with builders completing approval and construction documentation.

Projects will be delivered via builder-supplied designs or Renewal SA concept designs.

Panel categories and operation

Builders on the panel will work within two categories:

• House and land packages sold on Renewal SA projects with land purchasers entering Housing Industry Association (HIA) contracts directly with builders.
• Projects where Renewal SA directly delivers houses using HIA contracts with chosen builders.

Builders will agree to a service deed with Renewal SA, verifying their capacity to undertake experienced projects and remaining on the panel for three years.

A secondary procurement process will be conducted for project-by-project delivery.

Benefits and efficiency improvements

Peter Gatsios (pictured above), Renewal SA acting executive director residential project delivery and assets, emphasised the benefits.

“We want to make working with the government easier for builders and improve the speed to market and supply of housing,” Gatsios said.

“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.”

He also highlighted the importance of long-term relationships with approved suppliers to mitigate risks related to quality, delivery, and performance.

Streamlined processes and expectations

Efficiencies will be improved by:

• Reducing the number of tenderers per project.
• Reducing administrative and assessment burdens through pre-qualification.
• Standardising agreements and contractual arrangements.
• Setting clear expectations of responsibilities.
• Addressing the housing emergency by significantly shortening the project scope to dwelling completion time.

The builders panel initiative is expected to enhance the efficiency and speed of delivering affordable and social housing across Adelaide, providing a much-needed boost to the housing market.

Read the Renewal SA announcement here.

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