$100 Million Public Housing Stimulus Package Industry briefing presentation

1. DEPARTMENT OF LOCAL GOVERNMENT, HOUSING AND COMMUNITY DEVELOPMENT $100 Million Public Housing Stimulus PackageIndustry briefing presentation nt.gov.au

2. Session set up • Introductions • Recording of session • Probity advisor

3. Background The Northern Territory Government has allocated $100 million in stimulus funding to the Department of Local Government, Housing and Community Development. The funding is to be spent on construction, repairs and upgrades of public housing dwellings in urban and regional centres over 18 months to 30 June 2020. Dual intent is to extend the life of housing assets and provide needed stimulus to construction industry.

4. Objective • Provide construction industry stimulus through a targeted 18-month program which increases public housing stock and extends the long-term life of existing public housing stock across the Northern Territory. • The package will: • fast track construction, repairs and upgrades of public housing • assist in addressing the needs of current public housing tenants, and Territorians on public housing waiting lists • provide work for a wide range of contractors in the industry • help to support local businesses and retain jobs

5. Target Assets • 5,000 urban public housing dwellings throughout NT urban and minor centres • 545 ‘industry housing’ dwellings (NGO sector usage) • 1,340 government employee housing dwellings – regional centres and remote communities • 180 Town Camp dwellings in Darwin and Katherine • Note that we have another 5,000 properties across 73 remote communities and town camps being primarily addressed by the NT Government’s ten year $1.1 billion Our Community. Our Future. Our Homes.

6. Timing of the program • This is an 18 month program announced in late 2018 and the department will deliver the package by the end of the 2019-20 financial year (30 June 2020) • $35 million is to be expended by 30 June 2019 • $100 million is to be expended by 30 June 2020 but largely committed by 31 December 2019 2018-19 $35M 2019-20 $65M

7. Where will works occur? • Preliminary program of works in all major centres*: *Provisional Program maybe revised on region by region basis as further scoping occurs **Provisional - unspent funds will be allocated to direct program.

8. Works to be Completed • To reach as many contractors as possible, works will be broken down into small packages wherever possible. • Works will include: • New dwelling construction ($23M) • Complex upgrades - lighting, fencing, security, landscaping, roofing, facades, internal fit outs ($30M) • Upgrades and restoration of dwellings ($13M) • Urgent infrastructure & housing in town camps ($10M) • Roofing upgrades ($10M) • Improved amenity in government employee housing ($4M)

9. Works to be Completed • We expect a large number of Tier 1 and Tier 2 works to be issued, and a smaller number of Tier 3 works • Tier 1 – up to $15,000 • Tier 2 - $15,000 to $100,000 • Tier 3 - $100,000 to $500,000 • Expect over the program life between 1500 to 3000 work orders, with the bulk of these tier 1 and 2 works. • Regions with fewer stimulus contractors, may consider more bundled programs

10. Work by Category* **Provisional - unspent funds will be allocated to direct program.

11. Will existing panel contractors also get works from this stimulus package? • The majority of works will go to Stimulus Contractors (non-Panel) • To get works moving while the 18 month program was being stood up for the high volume of procurement, a small percentage is being delivered through existing panels and their subcontractors • Panel contractors may also be utilised where registered stimulus contractors are not able to undertake works or Value For Territory procurement responses are not received • Upgrade works on remote Government Employee Housing (approx. $4M) will most likely be undertaken by existing panel contractors already working in those communities • It is intended that only 11% of works under this program will be done by panel contractors – the 18 month timeframe enables this

12. How it will work • Contractors are encouraged to register under the $100 million stimulus package via dlghcd.nt.gov.au. This is a new program – you need to register for this program even if you previously registered under prior public housing stimulus programs • Registration does not guarantee work, however the department may invite contractors to quote for works at any time in the 18 months • Requests for quote will be based on the works required and location • Contractors will be asked to provide a price for the works and evidence of local content, past performance and capacity/timeframes, for procurement assessment • A successful quote will result in a contract with the department • The quotation process must be in line with NT Government Procurement Framework: https://nt.gov.au/industry/government/procurement-conditions-framework/procurement-directions

13. How do we choose who gets to quote? • In order to maintain fairness and transparency, registered contractors are selected to quote using a random number generating process, that takes into account the region and types of work for which contractors have registered • It also takes into account whether a contractor has already had an opportunity to quote on works or has actually received works. This ensures as many contractors as possible are given an opportunity to quote and receive stimulus program works • There is no guarantee that every registered contractor will receive an opportunity to quote, nor is there any way to give any one contractor an advantage over another • A registered contractor could receive a request to quote at any point during the program

14. Program governance and transparency • The $100m public housing stimulus package has significant governance in place to ensure transparency and probity • Independent probity advisor Merit Partners has been engaged to review the processes and governance associated with this program • A Compliance & Audit officer is in the Stimulus team to provide an ongoing audit of procurement actions associated with this program • A separate independent probity auditor will independently audit procurement actions associated with this program • The program will be subject to audits by both the Auditor General of the Northern Territory and the Buy Local Industry Advocate

15. Conditions of contract • The conditions of contract for the $100 million Stimulus Package are based on the NTG Works and Services conditions of contract • Contractors are reminded to thoroughly read and understand the conditions of contract, listed in the Request for Quote which are required to be accepted in order to under take works • The Contractor will, at all times, comply with Work Health and Safety (National UniformLegislation) Act 2011 and Work Health and Safety (National Uniform Legislation) Regulations • Works will be compliant to all current relevant Australian Standards, Work Health and Safety (WHS) Legislation and in line with the National Construction Code • Contractors must abide by all policies and procedures of the Department relevant to the provision of the Works (including but not limited to the Code of Conduct Clause contained in the Request for Quote). • Contractors must adhere to works and services detailed in the Standard Specification for Small Building Works requiring Witness and Hold points in line with certification

16. Compliance Assessments and Audits The contractor must keep, and produce when requested by DLGHCD, records on, but not limited to; • All works and services performed, inspections, non-conformance, any breaches and resolutions • Records of asbestos works • Information in respect of Tenant issues, actions taken and outcomes • Copies of trade certifications for all staff including sub contractors, relevant to the type of works being undertaken • Insurances listed in the Request for Quote including Public Liability • Work Health and Safety records • The number of apprentices and local employment opportunities generated through the contract

17. Consultation and feedback • Consultation with Master Builders Association, Housing Industry Association, Chamber of Commerce, Buy Local Industry Advocate, ICN NT and NTIBN • Exploring a reporting format with ICN NT to provide feedback to industry on works awarded • Industry Roadshows in Alice Springs, Tennant, Darwin,Katherine and then Nhulunbuy. The Department will repeat the roadshows in May 2019 to confirm the program is working for industry • Members nights with Master Builders and HIA being scheduled • Regular bulletins through Department of Trade, Business and Innovation, social media and other channels

18. How to register • Go to site dlghcd.nt.gov.auand follow the link to stimulus program • There is a registration form to fill in online, and a vendor maintenance form so you can be added to the finance system for payment on completion of works • By filling it out online you will receive an automated response confirming your registration details. If you want to modify your registration at any time please contact the stimulus team on 8999 1989 or email housing.stimulus@nt.gov.au • Copies of these documents are available at the briefings, but the initial registration is an online form, to trigger that acknowledgement email

19. How to contact the Department (Stimulus) For general inquiries: • Phone: (08) 8999 1989 • Email: housing.stimulus@nt.gov.au • Website: dlghcd.nt.gov.au For complaints: • Phone: 1300 301 167 • Email: Housing.Complaints@nt.gov.au

20. Questions

21. Thank you Phone: (08) 8999 1989 Email: housing.stimulus@nt.gov.au Website: dlghcd.nt.gov.au