Three more construction companies signed for SA Water $3bn capital program

SA Water’s $3.3 billion capital program has marked another milestone as more opportunities for work were shared with South Australia’s construction sector. 

During a special forum, three more specialist pipeline companies were announced to have been signed to undertake the delivery of capital works for SA Water. This builds on the five companies announced in September of this year. 

BMD, Diona and Leed Engineering and Construction will share about $700 million worth of works over the next four years. These works will include laying trunk water and sewer pipes that will enable the construction of new houses. 

The capital program includes a record $1.5 billion investment, which is a key initiative of the South Australian Premier’s Housing Roadmap. The program will help increase capacity of the water and sewer network through upgrades to pipes, pump stations and tanks, unlocking a potential 40,000 new allotments across the State. 

“The Malinauskas Government is investing in the State’s future, by providing essential housing infrastructure and long-term job security for our skilled workforce. 

“Work is already underway on this four-year project, with the first pipes going in the ground in the northern suburbs. 

“These companies will play a pivotal role in delivering the record capital program which will build network capacity and enable future expansion. 

This investment will create hundreds of local jobs and future opportunities for SA subcontractors,” Minister for Housing and Urban Development Nick Champion said. 

Infrastructure projects will primarily target Adelaide’s northern growth front – including Angle Vale, Riverlea and Roseworthy – to help maximise the number of new dwellings to be delivered through this investment. 

The three recently signed companies will help increase SA Water’s capacity to deliver this infrastructure, which requires a huge volume of pipeline to be duplicated and existing trunk mains to be upsized. 

Leed Engineering and Construction is ready to commence pre-construction work to inform the alignment for new underground trunk water mains, which are expected to be installed from early next year and will unlock capacity for new houses in Angle Vale. 

Beyond housing growth infrastructure, the three specialist companies will also undertake other projects across SA Water’s capital program. This includes upgrades to the Beetaloo and Port Pirie South major trunk mains. 

Due to the scale of this program, significant opportunities for more companies within the construction industry will have a chance to work alongside SA Water to deliver the projects. 

More than 250 industry members, including peak bodies such as the Civil Contractors Federation and Master Builders Association, were briefed on four tender opportunities to support the delivery of critical infrastructure across South Australia. 

The tenders include SA Water’s Water Main Relay (Metropolitan), Extensions and Connections, Engineering panel, and Capital Delivery Professional Services panel. 

Together, these new tenders represent $398 million worth of direct work across the remaining three years of the capital program, which will commence from 1 July 2025. 

As part of a special form that was recently held, SA Water also shared its two-year capital project forward plan and subcontracting opportunities available through its existing construction partners. 

Across approximately 120 projects – including the delivery of new infrastructure to support housing growth and an upgrade of the Morgan to Whyalla Pipeline – there will be about $799 million in opportunities for subcontracting work via SA Water’s delivery partners. 

Works will cover specialist disciplines such as concrete rehabilitation, earthworks, metal fabrication and structural steelwork. 

During the expo-style special forum, prospective companies also had opportunities to interact with SA Water and its construction partners to learn more about upcoming work to grow and maintain South Australia’s water and wastewater networks. 

“Civil contractors in this state are ready to deliver the critical infrastructure needed to increase the supply of new homes. 

“The record capital works program will secure long term jobs and help train more apprentices – upskilling a generation of future workers. 

“Holding procurement forums is an important aspect of these programs, as it details the future opportunities for our local companies and their workforce,” Civil Contractors Federation SA CEO Rebecca Pickering said. 

Source: Premier of South Australia – Media Releases; Utility Magazine; Roads & Infrastructure Australia