SUBCONTRACTORS working under one of the new head maintenance contractors for Department of Housing, Transfield Services, have had their fears of long billing periods and low local content levels allayed.
SUBCONTRACTORS working under one of the new head maintenance contractors for Department of Housing, Transfield Services, have had their fears of long billing periods and low local content levels allayed.
Transfield has been in discussions with the Department of Housing to lower the original 60-day billing cycle and subcontractors will now be payed after 14 days.
“We are paying on 14 days for this contract. Our tender request documents were based on 60 days but subsequent collaboration between Department of Housing and Transfield Services has agreed to reduce the billing cycle,” a Transfield Services spokesperson said.
Transfield was awarded the contract under a new model announced last month by housing minister Bill Marmion.
Three major contracts were awarded for the maintenance and repair of state housing in the Perth, Great Southern, Mid West and Pilbara regions.
Transfield’s contract is worth $200 million while Lake Maintenance will look after the Goldfields, Wheatbelt and Kimberley regions, and Programmed Maintenance Services was awarded the maintenance contract for the South West.
Sydney-based private company Lake Maintenance specialises in the maintenance of public housing, and currently manages more than 20,000 properties in NSW and Tasmania.
Opposition state development spokesman Mark McGowan said the changes to contracting arrangements had concerned the current subcontractors working in the regions.
“Their concerns are the cost pressure it will put on them. The rates system is too extreme, they reckon they will be screwed down,” he said.
Mr McGowan said subcontractors had raised concerns the billing periods would affect their business and their ability to take on apprentices.
“The head company will take some of the margin they were operating on and there won’t be any significant improvement to the state’s bottom line,” he said.
“They are complaining that it will take – as opposed to the current arrangement of one to two weeks to be paid – up to 60 days to be paid under the new arrangement, and in particular the requirement for local content in country areas is very lax.”
Transfield will engage local subcontractors to undertake the delivery of all services for the contract.
“We went out to a public tender advertised in local and regional papers and an electronic tender system, which elicited over 300 responses,” Transfield said.
“It is important to note that we have honoured and committed to the WA Department of Housing in approach and responsibility for local business engagement
“We feel there is still an opportunity to engage more local suppliers and Indigenous groups into our service delivery approach.”
Transfield allayed the fears of subcontractors and said the competitive tender process allowed subcontractors to bid the price they felt was appropriate for their service.