❓ An inquiry into the performance of contractors responsible for public housing maintenance, revealing initial challenges in KPI measurement and a focus on establishing effective systems. Payments have been made, and indigenous employment has seen some increase with one contractor.
AnsweredQoN 4118Legislative Assembly
QuestionView source ↗
I refer to the Barnett Government’s repair and maintenance of Western Australian public housing and the awarding of head contracts to three major groups, and ask:
(a) as at 12 October 2010, could the Minister advise, as a percentage, how each of the three individual companies (Transfield, Lake Maintenance and Programmed Facility Management) are meeting each of the following performance indicators:
(i) 100 per cent of job orders completed on time for emergency works (3 hours);
(ii) 100 per cent of job orders completed on time for priority works (48 hours);
(iii) 100 per cent of job orders completed on time for routine works (14 calendar days);
(iv) 100 per cent of job orders completed on time for major works (28 calendar days);
(v) 100 per cent of agreed completion time for vacant premises to deliver a corporate target of seven days average for the State; and
(vi) 100 per cent contractor availability and completion of after hours emergency maintenance necessary works;
(b) if the Minister cannot advise the answer to (a), why not;
(c) if the Minister can advise the answer to (a), could he also advise what the average turn-around in hours or calendar days is for each of the above performance indicators;
(d) what has been the increase in Indigenous employment outcomes since the commencement of the new model;
(e) what is the total amount paid to each of the three companies following submission of work orders as at 12 October 2010; and
(f) has any amount due to be paid to any of the three companies been withheld, and if so:
(i) what is the amount for each of the companies; and
(ii) why was the amount due withheld?
(a) as at 12 October 2010, could the Minister advise, as a percentage, how each of the three individual companies (Transfield, Lake Maintenance and Programmed Facility Management) are meeting each of the following performance indicators:
(i) 100 per cent of job orders completed on time for emergency works (3 hours);
(ii) 100 per cent of job orders completed on time for priority works (48 hours);
(iii) 100 per cent of job orders completed on time for routine works (14 calendar days);
(iv) 100 per cent of job orders completed on time for major works (28 calendar days);
(v) 100 per cent of agreed completion time for vacant premises to deliver a corporate target of seven days average for the State; and
(vi) 100 per cent contractor availability and completion of after hours emergency maintenance necessary works;
(b) if the Minister cannot advise the answer to (a), why not;
(c) if the Minister can advise the answer to (a), could he also advise what the average turn-around in hours or calendar days is for each of the above performance indicators;
(d) what has been the increase in Indigenous employment outcomes since the commencement of the new model;
(e) what is the total amount paid to each of the three companies following submission of work orders as at 12 October 2010; and
(f) has any amount due to be paid to any of the three companies been withheld, and if so:
(i) what is the amount for each of the companies; and
(ii) why was the amount due withheld?
AnswerView source ↗
Answered
11 November 2010
Responded by
Minister for Housing
Response time
30 days
The Department of Housing advises:
(a)-(b) The new 'Head Contractor Model' commenced on 1 July 2010. The Department is working collaboratively with all three head contractors to ensure processes and systems are in place to support the effective delivery of maintenance services as required under the contract. The new model has required changes to the way Key Performance Indicators (KPIs) in the Service Level Agreements (SLA) are measured. The effective date of measuring and implementing the KPIs is February 2011.
(c) Not applicable
(d) There is a mandatory requirement in the SLA for the head contractors to submit a number of contract management plans including 'Local employment strategy' and 'Indigenous employment strategy.' While these have been addressed in their tender responses, the SLA gives the opportunity to update these plans if required.
The Maintenance Contract Superintendent will undertake periodic audits of the contractors' plans in support of these strategies there is however no contractual requirement for the head contractors to report on indigenous employment figures.
Since commencement of the contracts(s) on July 1, 2010, there has been no significant change with indigenous employment outcomes. Almost all sub contractors engaged by the three companies are locally based sole traders or sub contractors.
In the area of staff employment, Transfield, the largest head contractor, has increased its indigenous staff in relation to this contract from 1 at the start of the contract to the current level of 16.
(e) As at 12 October 2010 the following payments have been made:
Lake Maintenance - $1,093,794
Programmed Facility Management - $454,363
Transfield Services Australia - $3,459,609
(f) The Department in this new model has the provision to withhold up to 7% of the monthly paid invoices as liquidated damages where the KPIs are not being achieved against agreed targets. In addition, the Department may pay an incentive of up to 2% where the Contractor has achieved consistent compliance results above 95% in all categories over a three month period with no other breaches of Contract.
These provisions will only come into effect after 1 February 2011, once the measuring and implementation of the KPIs in the SLAs commence.
No amount due to be paid to the contractors has been withheld.
(i) Not applicable
(ii) Not applicable
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(a)-(b) The new 'Head Contractor Model' commenced on 1 July 2010. The Department is working collaboratively with all three head contractors to ensure processes and systems are in place to support the effective delivery of maintenance services as required under the contract. The new model has required changes to the way Key Performance Indicators (KPIs) in the Service Level Agreements (SLA) are measured. The effective date of measuring and implementing the KPIs is February 2011.
(c) Not applicable
(d) There is a mandatory requirement in the SLA for the head contractors to submit a number of contract management plans including 'Local employment strategy' and 'Indigenous employment strategy.' While these have been addressed in their tender responses, the SLA gives the opportunity to update these plans if required.
The Maintenance Contract Superintendent will undertake periodic audits of the contractors' plans in support of these strategies there is however no contractual requirement for the head contractors to report on indigenous employment figures.
Since commencement of the contracts(s) on July 1, 2010, there has been no significant change with indigenous employment outcomes. Almost all sub contractors engaged by the three companies are locally based sole traders or sub contractors.
In the area of staff employment, Transfield, the largest head contractor, has increased its indigenous staff in relation to this contract from 1 at the start of the contract to the current level of 16.
(e) As at 12 October 2010 the following payments have been made:
Lake Maintenance - $1,093,794
Programmed Facility Management - $454,363
Transfield Services Australia - $3,459,609
(f) The Department in this new model has the provision to withhold up to 7% of the monthly paid invoices as liquidated damages where the KPIs are not being achieved against agreed targets. In addition, the Department may pay an incentive of up to 2% where the Contractor has achieved consistent compliance results above 95% in all categories over a three month period with no other breaches of Contract.
These provisions will only come into effect after 1 February 2011, once the measuring and implementation of the KPIs in the SLAs commence.
No amount due to be paid to the contractors has been withheld.
(i) Not applicable
(ii) Not applicable
Notice: This document is created or edited using unregistered or evaluation copy of rtLib valid for testing or development purposes only. To use it for productive or any other purposes please register it. You may purchase the license on
http://www.rtlib.com
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