“Sweeping and broad reforms to government procurement” have been announced in South Australia under a multi-million dollar plan to build public homes from materials manufactured in its home state.
Under the announcement the government has mandated “South-Australian manufactured products must be used on public housing construction and maintenance programs, where available.”
The SA Government says it is putting local manufacturers and SA businesses first under a $177.5 million commitment to build 400 new affordable homes and refurbish a further 350.
It’s all part of plans for the government to target an increase of $425 million per year in work awarded to SA businesses.
The South Australian Government suggests more changes for government procurement could soon follow to support local businesses.
Tenders for construction of more than 100 homes have been released with a requirement for South Australian workers to be used for a minimum of 90% of labour hours. A further 20% of those hours is to be supplied by apprentices, trainees, Aboriginal workers or the long term unemployed.
“Setting an example for the broader industry, the government will require core products used in construction to be manufactured here in SA, including bricks, timber frames, concrete, reinforcing steel, steel frames, windows, security doors and steel for roofing, fencing and rainwater tanks,” the SA Government says.
The government estimates these products account for approximately 58 per cent of the cost of building an average dwelling.
“We’re changing these rules because buying local products means supporting South Australian businesses and local jobs,” said SA Premier Stephen Mullighan.
“If we can change the buying habits of government departments away from interstate and overseas suppliers to local South Australian businesses, it’s a huge boost to the local economy.”
Network with procurement professionals in South Australia. Sign-up to our Big Breakfast, April 27 2023, at the Adelaide Oval.