DownerMouchel wins $340m roads contract

The state government has awarded a five-year contract for the maintenance of Perth metropolitan roads to Sydney-based Downer EDI Works and its joint venture partner, English company Mouchel International.

The Integrated Service Arrangement is worth $340 million over five years.

Downer has a long history in road constructin and maintenance while Mouchel International (Jersey) Ltd, a UK-based consulting and business services company, is new to the Australian market.

Downer previously held a term network contract for the south metro area while roads in the north metro area have been managed by Best Roads Group, whose three members include Claremont-based civil engineering contractor Highway Construction.

The Minister said the Metropolitan Region ISA is the first of seven ISAs to be finalised, with the remainder to be awarded over the next 10 months.

Interim agreements are already in place for the seven regions, with Main Roads and the private contractors in the process of finalising terms.

Transport Minister Simon O'Brien said the DownerMouchel joint venture was chosen after an extensive procurement process by Main Roads WA.

"With the current long-term contract reaching the end of its duration, Main Roads went through an extensive review process in order to develop and award this new contract," Mr O'Brien said.

"It took into consideration what was learned from their current arrangements and evaluated proponents based on high-level services that could be provided to both Main Roads and the community.

"The ISAs are more than just road maintenance contracts - they are relationship-based arrangements to provide road network operations, operational asset management, maintenance delivery, minor capital works delivery (projects less than $3million in value), and project and contract management services," he said.

See statement from the minister below:

The State Government has awarded a new Integrated Service Arrangement (ISA) contract for the maintenance of State roads in the Perth metropolitan area.

The ISA replaces the former long-standing contract for road maintenance, now expired, and is valued at about $340million over five years.

Transport Minister Simon O'Brien said the DownerMouchel Joint Venture, comprising Downer EDI Works Pty Ltd and Mouchel International (Jersey) Limited (Australian Branch), was awarded the Metropolitan Region ISA, after an extensive procurement process by Main Roads WA.

"With the current long-term contract reaching the end of its duration, Main Roads went through an extensive review process in order to develop and award this new contract," Mr O'Brien said.

"It took into consideration what was learned from their current arrangements and evaluated proponents based on high-level services that could be provided to both
Main Roads and the community.

"The ISA selection process aimed to ultimately identify the best value for money proposal from private sector partners and considered which integrated service providers were most likely to form an effective collaborative relationship with
Main Roads.

"The ISAs are more than just road maintenance contracts - they are relationship-based arrangements to provide road network operations, operational asset management, maintenance delivery, minor capital works delivery (projects less than $3million in value), and project and contract management services."

To allow for optimum delivery of integrated services, the ISA agreement will have an initial term of five years with the provision for an extension based on performance.

The Metropolitan ISA network is the first of seven ISAs with the remaining to be awarded over the next 10 months.