The state government has privatised maintenance of South Australia’s regional roads, with Fulton Hogan awarded the contract for Regional South.

The new contracts extend the government’s 20-year partnership with industry to maintain the state’s 23,000-kilometre road network.

Currently, around 60 per cent of road maintenance services are outsourced and under the new model, all road maintenance will be delivered in conjunction with industry to take advantage of their expertise, according to Stephan Knoll, Minister for Transport, Infrastructure and Local Government.

“These new contracts will allow us to leverage the expertise and efficiency of industry to deliver better and safer roads for South Australian motorists,” he says.

“These companies are experts in road maintenance and employ thousands of South Australians either under existing contacts or on past projects.

He says the former Labor government outsourced the majority of the maintenance of South Australia’s road network in 2006, 2011 and 2013. 

“DM Roads and Fulton Hogan have been awarded contracts to maintain our road network under the former government in 2013 and 2011 respectively,” Mr Knoll says.

“These companies have been maintaining tens of thousands of kilometres of South Australia’s road network over many years and have been employing thousands of South Australians over that time.

“The new contracts include key performance indicators that specifically target and monitor local SME use and require demonstration of achievement of IPP targets and compliance with the subcontractor principles, with financial consequences should performance thresholds not be met.

“Through these new contracts we have been able to get a better bargain for taxpayers to drive their dollar further.”

The contracts are for up to 13 years.

A statement from the minister says Fulton Hogan employs hundreds of South Australians, contributing more than $350 million per year to the local economy across its civil maintenance infrastructure services, utilities and construction activities.

Nationally, Fulton Hogan delivers more than $500 million of road maintenance works annually, with over 2,000 direct employees involved in asset management and road maintenance.

Since 2011, Fulton Hogan has had the Adelaide North Metropolitan Maintenance Contract.