The Malinauskas Labor Government will commence a review of the South Australian Housing Trust Maintenance Contracts following concerning reports over the delivery of maintenance works as well as the alleged non-payment of subcontractors have come to light.
The Government will not shy away from the challenges reported and remains steadfast in its commitment to deliver homes, tackle the housing crisis and ensure the State’s public housing has its maintenance conducted in a timely manner.
Announced as part of the Premier’s Housing Roadmap, the Review of the South Australian Housing Trust Maintenance Contracts will be conducted by the Chairs of the Independent Statutory Authorities that comprise the newly established Department for Housing and Urban Development.
The Chairperson of the SA Housing Trust Ms Mary Patetsos AM will chair the review, alongside Mr Stephen Haines AM Chair of the Urban Renewal Authority, Mr Allan Holmes SA Water Board Chairman and the Chief Executive Officer of the Department for Housing and Urban Development, Mr David Reynolds PSM. They will undertake a 90-day review into all contracts that provide maintenance services to the South Australian Housing Trust.
Each of the Chairs have significant experience in management and governance with the Review’s Terms of Reference tasking the panel with:
- Reviewing data on the level, standard and timeliness of maintenance works achieved.
- Ensuring the appropriate arrangements are instituted to enable sub-contractors to be paid in full, and in accordance with existing legislative timeframes.
- Ensuring an appropriate and effective dispute resolution mechanism exists.
- Reviewing and providing advice to Government on the existing South Australian Housing Trust Maintenance Contract in the context of the current economic conditions.
- Considering alternative delivery or service improvement models that could improve and enhance the maintenance outcomes for the South Australian Housing Trust and its clients.
In addition to the Review, the Minister for Housing and Urban Development Nick Champion has convened a Roundtable to hear from industry bodies to better understand:
- The issues their workforces face.
- Their relationship and experience with the head contractors.
- Any other impediments that are preventing maintenance works from occurring on the South Australian Housing Trust assets.
The Minister has also requested an urgent briefing from the South Australian Housing Trust on the background, tender, review, and execution of the State’s Maintenance Contract with head contractors Spotless Facilities Services Pty Ltd. RTC Group and Torrens Facility Management, plus service delivery partners.
Following a competitive tender process commenced by the Marshall Liberal Government and former Minister for Human Services, the Honourable Michelle Lensink MLC, the South Australian Government and entered into a contract on 19 September 2022 with head contractors Spotless Facilities Services Pty Ltd. RTC Group and Torrens Facility Management.
The Contracts with the three head contractors are valued at almost $1 billion over 7 years.
As put by Nick Champion
The average age of a housing trust property is 44 years old, so we need to ensure we are keeping up required maintenance work on our ageing properties.
It’s unacceptable that amid a housing crisis, we have homes vacant and unfit for tenancy as we are waiting for required maintenance and upgrades to occur.
Any instance where subcontractors are not being paid for completed works which meet the service delivery standard is unacceptable.
In the interim, I encourage any subcontractor experiencing issues with any late payment to contact the Office of the Small Business Commissioner to ensure their concerns are formally recorded.
