South Australia will soon release a seven-year tender for the maintenance of the state government’s entire 23,000-kilometre road network.

Treasurer Rob Lucas said the move to outsource the state’s roadworks would save taxpayers up to $9 million each year from 2021/2022. The tender will not include council roads.

Department of Planning, Transport and Infrastructure (DPTI) staff currently perform about 40% of the state’s road maintenance works; Lucas said no jobs would be lost as a result of the tender.

“It’s important to reiterate that everyone who currently has a job with the department, and wants a job when these contracts start, will have a job,” he said.

In a statement, DPTI said it will consult with its workforce and relevant unions regarding the proposed future model for road maintenance to ensure they are best placed to take up opportunities under the new road maintenance contracts, either with the Department or with successful contractors.

Lucas said many regional contractors were likely to benefit from the outsourcing.

“Proposed contracts to maintain these roads will see the State divided into four zones – Adelaide metropolitan, Regional South, Regional North and Outback,” he said.

“Having four dedicated areas will allow us to leverage the expertise of road maintenance contractors and allow them to focus on providing the best possible outcomes for their area.

“Grouping similar road types within these four zones will provide further efficiencies for potential contractors to help save taxpayer dollars.”

The initial contract term is proposed to be for seven years with an option to renew for a further six years, subject to the contractors meeting performance standards linked to levels of service and performance.

Lucas said that by partnering with industry, the government would be able to “keep pace with increasing demands of maintaining South Australia’s road network”.

“The Marshall Government wants to continue to improve South Australia’s roads and by further capitalising on the expertise and efficiency of industry we can better achieve that goal,” he said.

The tender process will begin in April 2019 and is expected to be completed by mid-2020, with the intention of having new arrangements in place by the end of 2020.