The State Government has declined offers received in response to a request for tender to build the East Perth Common Ground facility and will be returning to the market as soon as possible.
In an increasingly competitive and heated construction market, the request for tender for a head contractor was declined, as value for money could not be demonstrated.
The 112-unit Perth facility will provide permanent housing together with wraparound support services for a 50:50 mix of people sleeping rough or on a very low income.
The two Common Ground facilities in East Perth and Mandurah have a key role in the State Government's homelessness strategy.
The Department of Communities is working to go back out to market shortly.
As stated by Housing Minister John Carey:
"As disappointing as this is, this was done upon the advice of the Department of Communities and ensures that value for money is not compromised, under the heated construction market and to the WA taxpayers.
"The State Government will go back out to market shortly, with a new request for tender to deliver Common Ground Perth.
"This Government remains strongly committed to delivering this important 112-unit facility that will provide permanent housing along with a suite of vital support services.
"The Common Ground facilities are a key pillar of our long-term response to addressing homelessness in Western Australia.
"That's why we are investing more than $70 million to deliver two new Common Ground facilities, with $8 million funded through the Perth City Deal for the East Perth facility.
"Common Ground provides long-term accommodation with the right wraparound supports. It's about getting people off the street permanently.
"There is significant commitment being made towards homelessness in WA. In the coming four years, we are investing $2.4 billion on social housing and homelessness measures."
