Lot Fourteen

Ms LUETHEN (King) (14:18): My question is to the Minister for Planning. Can the minister update the house on the contract awarded for the stage 2B demolition works at Lot Fourteen?

The Hon. S.K. KNOLL (Schubert—Minister for Transport, Infrastructure and Local Government, Minister for Planning) (14:19): I rise with great pleasure to answer this question from the member for King, and to really put to bed some of the slurs that were questioned in this house yesterday by members of the opposition in relation to the conduct of Renewal SA and, in doing so, make it very apparent that this is a government that is open and transparent—

Members interjecting:

The SPEAKER: Minister, please do not provoke the opposition.

The Hon. S.K. KNOLL: —and willing to give the information to the people of South Australia.

Members interjecting:

The SPEAKER: Minister, please do not provoke the opposition.

The Hon. A. Koutsantonis interjecting:

The SPEAKER: The member for West Torrens!

The Hon. S.K. KNOLL: To that end, I would like to give some information to the house in relation to the stage 2B demolition works down at Lot Fourteen and to say this. The scale of the demolition program means that Renewal SA is determined to undertake the demolition work across four stages to release to the market over a two-year period.

Stage 1 commenced in November last year, and the fourth and final stage is due to be completed in mid-2021, comprising of the East, Cobalt and Hone wings. This is actually nearing completion in November this year. Stage 2B is the largest and most complex package of works for the project and was essentially tendered on the basis that it includes a demolition and remediation of the emergency outpatient and theatre block buildings, including surrounding lower level secondary link buildings.

In terms of the procurement process, Renewal SA advertised the Lot Fourteen stage 2B request for tender through an open public tender process on the SA Tenders and Contracts website on 10 May this year. Full-day, self-guided inspections were provided to all parties that asked for it, and the tender closed on 27 June 2018.

Essentially, the evaluation matrix used a pre-approved 25 per cent weighting for price for the overall assessment, with non-price criteria made up of 75 per cent of the evaluation criteria. This reflects the fact that this is a very complex project and that the methodology program, resourcing and safety in relation to these works were paramount in ensuring that we got a good outcome on a very important site here in South Australia.

The tender evaluation panel consisted of four experienced Renewal SA employees. The panel was also supported by third-party advisers. Engineering consultancy firm WSP provided technical review. Rider Levett Bucknall provided cost and technical review, as well as using BDO consulting as an external probity adviser. The probity adviser's report confirmed that there were no issues observed and essentially that the process was run with full probity being ticked off.

Yes, it is correct to say that McMahon Services were not the cheapest bidder, but price is not always the determining factor. McMahon Services did come in well under Renewal SA's own cost estimate, but—

Members interjecting:

The Hon. S.K. KNOLL: —that's what I'm saying—we also need to have regard to non-price factors. These include making sure that we have jobs for South Australians here in South Australia, making sure that we also pick a company that demonstrates a methodology that actually makes us think that they are going to be able to deliver the project on time and on budget.

Certainly this is a government that takes risk extremely responsibly and seriously. It's why Renewal SA has undertaken a process which the government fully agrees with around making sure that we tender for and contract a supplier who is going to deliver. The reason why this is important is that for 10 years this project sat dormant when members of the opposition did nothing, absolutely nothing, in getting this thing organised. What this government has done is make sure that we do everything we can to get Lot Fourteen moving as soon as possible, delivering it on time and on budget and making sure for all of those traders in the East End who have been suffering because of a lack of—

The SPEAKER: The minister's time has expired. I call to order the member for Mawson and the member for Kaurna as well as the member for Badcoe, who I warn for a first time. The member for Reynell has the call.