Victorian firm Sensum given contract to oversee $50m in upgrades to 12 SA schools without a tender
A Victorian firm was given an exclusive contract to oversee $50 million in upgrades to 12 SA schools – now our Master Builders want to know why local companies weren’t even considered.
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The Master Builders Association has questioned how a Victorian company was chosen to oversee a $50.8 million contract to upgrade 12 South Australian schools without the deal going to tender.
The Education Department has appointed Melbourne firm Sensum to project-manage the construction of modular classroom buildings for city and country schools as part of the government’s $1.3 billion school upgrade program.
Sensum opened an Adelaide office last year and has hired eight staff for the $50.8 million program. But the MBA’s SA branch has criticised the department for not putting the contract out to tender.
“At a time when the industry is in desperate need of local jobs and profits remaining in South Australia, it’s disappointing to see a major contract awarded to a Victorian-based company,” MBA chief executive Ian Markos said.
“It is equally disappointing that a major contract worth millions of dollars was awarded by direct negotiation, shutting out local South Australian builders who are more than capable of delivering these projects.”
Sensum chief executive Nick Strongman said the SA Education Department had sought out his company, which is undertaking a similar project across 100 Victorian schools.
He said his company would be using 95 per cent of South Australian labour and materials under the contract, which has been approved by industry advocate Ian Nightingale.
“All builders that tender on the project work are required to be based in SA, to use SA trades and consultants and manufacture offsite components in South Australia,” he said.
“This has created new manufacturing jobs and we have also seen a new facility open in the Holden plant at Elizabeth and another one at Para Hills West.
“We are focused on building a new industry in South Australia that will thrive and continue to grow post-delivery of this current program with the Department of Education.”
Kent Town architect DAS Studio has designed all 12 buildings.
The modular buildings will be prefabricated in a factory and delivered to schools and assembled onsite.
Mr Strongman said a requirement of the contract was to build modular construction capability within SA.
Two interstate companies, Fleetwood and Grove – which specialise in modular construction – have also opened manufacturing plants in Adelaide’s northern suburbs as part of the $50.8 million contract.
The MBA said there was plenty of capacity to do the construction work in Adelaide and there was “no need” to bring in interstate companies.
An Education Department spokesperson said the vast majority of work under the program would be carried out through traditional construction involving SA builders and tradies.
“The prefabricated modular buildings are high-quality, modern facilities providing exceptional learning environments similar to bricks and mortar structures,” the spokesperson said.
“They allow facilities to be delivered in a shorter time frame and at a lower cost. The contract was awarded to Sensum based on their extensive expertise in delivering a large number of modular education facilities projects.
“Sensum is an experienced program manager with established partnerships with local South Australian commercial builders and contractors.”