The maintenance of South Australian Housing Trust homes is currently provided through external service providers under service contracts. However, recent reports over issues with payment of subcontractors and associated service providers have come to light.

Any instance where subcontractors are not being paid for satisfactorily completed works is unacceptable. Further, amid a housing crisis, having homes left vacant and unfit for tenancy due to delays in maintenance is egregious and must be addressed.

To investigate and address this issue, the government is conducting a review into the South Australian Housing Trust Maintenance Contract.

The review will be tasked with:

  • Reviewing data on the level, standards and timeliness being achieved for maintenance work.
  • Ensuring arrangements are in place for sub-contractors to be paid in full and in a timely fashion for completed work, including effective mechanisms for dispute resolution.
  • Reviewing contractual arrangements in the context of the current economic environment.
  • Considering ways to improve the maintenance service to the SA Housing Trust and its clients.

The review will be conducted by the Chairs of the Government’s Independent Statutory Authorities: the Urban Renewal Authority, SA Water Board and the South Australian Housing Trust Board. This Panel will provide a report to the Minister for Housing and Urban Development in September 2024.

Monday 1 July 2024

  • The Review Panel will conduct a roundtable with relevant government representatives, unions and industry bodies

September 2024

  • The Review Panel will conclude their report.

The Head Contractors will receive individual meetings with the Review Panel to contribute to the findings of the review.

The Review Panel will also be accepting written submissions from Housing Trust tenants and sub-contractors.

The Review Panel will decide if other meetings are required.

The Review Panel will also be accepting written submissions from tenants and tradespersons sub-contractors about their experiences with the maintenance contract and how to improve it.

Details on how to make a submission will be made available in the next few days.

The existing maintenance contracts for South Australian Housing Trust properties are currently held with three service providers:

  • Spotless Facility Services (a subsidiary of Downer EDI Limited)
  • RTC Facilities Maintenance
  • Torrens Facility Management

These contracts were executed on the 19 September 2022, with maintenance services commencing 1 January 2023.  The contract is valued at approximately $630 million over a six-year term, with provision for a 2-year extension.

In light of recent reports that the contractual arrangements may not be providing the necessary service to the South Australian Housing Trust, its tenants or the sub-contractors that undertake the work, a review into the existing contracts and their outcomes will be tasked with:

  • Reviewing data on the level, standards and timeliness being achieved for maintenance work.
  • Ensuring arrangements are in place for sub-contractors to be paid in full and in a timely fashion for completed work, including effective mechanisms for dispute resolution.
  • Reviewing contractual arrangements in the context of the current economic environment.
  • Considering ways to improve the maintenance service to the SA Housing Trust and its clients.

The review will be undertaken by the chairs of boards of the three statutory agencies that are part of the Department for Housing and Urban Development:

  • South Australian Housing Trust Board (South Australian Housing Trust)
  • Urban Renewal Authority Board (Renewal SA)
  • SA Water Board (SA Water)

The Department for Housing and Urban Development will provide secretariat support to the review, which is to be completed by September 2024.