[COM] Penny Place | 78m | 24 levels | Apartments

[Ben]

This did go to tender last year. I don't recall any local firms applying. Maxcon was announced last year when they started the demolition works. The announcement is a "re announcement" of sorts as construction is commencing.

[SBD]

That's a very insular perspective. The build should be awarded to whoever puts in the best quote.

What should happen doesn't always happen.

I am sure that you heard of 'preferred tenderers', where other builders essentially don't even get a leg in. I didn't even see this project go out to tender and just heard that Maxcon were awarded (gifted) the job. Likewise, what also happens is that Maxcon has a propensity to use Melbourne resources and award sub-contracts to Melbourne contractors. Call it a "very insular perspective" if you like, but it does little for employment in SA.

I guess that depends on the definition of "employment in SA". All of the people working on site are working in SA. I guess a few of them could be fly-in, fly-out from Melbourne, increasing the occupancy of Adelaide's hotels. Most of them are likely to live here, at least for the duration (12 months?) of the build. During that time, they are SA residents working in SA, and various laws would require them to have SA drivers licenses and electoral enrolments. I think that makes them "South Australians".

"Best quote" is not always the same as "cheapest quote", and we don't have access to the assessment criteria.

[rev]

During that time, they are SA residents working in SA, and various laws would require them to have SA drivers licenses and electoral enrolments. I think that makes them "South Australians".

What laws would those be exactly? Why would they need South Australian drivers licenses?
You can vote at any polling station. They could even fly back for the day to vote, or they could submit a postal vote.

[SBD]

During that time, they are SA residents working in SA, and various laws would require them to have SA drivers licenses and electoral enrolments. I think that makes them "South Australians".

What laws would those be exactly? Why would they need South Australian drivers licenses?
You can vote at any polling station. They could even fly back for the day to vote, or they could submit a postal vote.

• Transfer an interstate or overseas driver's licence If you become a permanent resident of South Australia, you must get your South Australian driver's licence within ninety days.
• Change your address Every time you move, you must update your address on the electoral roll or your name could be removed and you will be unable to vote. You are eligible to enrol for your new address if you have lived there for at least one month.

[rev]

During that time, they are SA residents working in SA, and various laws would require them to have SA drivers licenses and electoral enrolments. I think that makes them "South Australians".

What laws would those be exactly? Why would they need South Australian drivers licenses?
You can vote at any polling station. They could even fly back for the day to vote, or they could submit a postal vote.

• Transfer an interstate or overseas driver's licence If you become a permanent resident of South Australia, you must get your South Australian driver's licence within ninety days.
• Change your address Every time you move, you must update your address on the electoral roll or your name could be removed and you will be unable to vote. You are eligible to enrol for your new address if you have lived there for at least one month.

Yeh ok, except they're not permanent residents in SA.

[Ben]

Pretty sure I saw piling rigs on site this morning.

[Ben]

The second stage of Penny place has been lodged which is to the south east side of the lot. This is the final piece to round off what should be a square with retail around all edges once finished.

Six (6) storey mixed-use development comprising five (5) levels of office, ground floor shop, ancillary car parking and landscaped open space

[eKwatee]

Work begins on $85 million Adelaide CBD apartment development

Work begins on $85 million Adelaide CBD apartment development
The ground has officially been broken on the Penny Place apartment development in the Adelaide CBD.

https://www.businessnewsaus.com.au/arti ... pment.html

[SRW]

I wonder, with only 50% sold, if saying they're 'breaking ground' is just a psychological trick to lock in more buyers or if they've got enough capital to launch speculatively?

[Algernon]

I wonder, with only 50% sold, if saying they're 'breaking ground' is just a psychological trick to lock in more buyers or if they've got enough capital to launch speculatively?

This is funded out of Kerry Stokes' pocket. No bank is involved to stipulate a minimum number of presales.

You're right though that there is a psychological element to this. As a buyer I'd be buying into something like this or other similarly cash funded developments (e.g. Meriton) for that extra bit of security.

[dbl96]

That's a very insular perspective. The build should be awarded to whoever puts in the best quote.

What should happen doesn't always happen.

I am sure that you heard of 'preferred tenderers', where other builders essentially don't even get a leg in. I didn't even see this project go out to tender and just heard that Maxcon were awarded (gifted) the job. Likewise, what also happens is that Maxcon has a propensity to use Melbourne resources and award sub-contracts to Melbourne contractors. Call it a "very insular perspective" if you like, but it does little for employment in SA.

I guess that depends on the definition of "employment in SA". All of the people working on site are working in SA. I guess a few of them could be fly-in, fly-out from Melbourne, increasing the occupancy of Adelaide's hotels. Most of them are likely to live here, at least for the duration (12 months?) of the build. During that time, they are SA residents working in SA, and various laws would require them to have SA drivers licenses and electoral enrolments. I think that makes them "South Australians".

How would it make sense economically to fly construction workers in from Melbourne and pay for them to stay in hotels when you could easily and cheaply source them locally instead?

[rhino]

How would it make sense economically to fly construction workers in from Melbourne and pay for them to stay in hotels when you could easily and cheaply source them locally instead?

If they're Fifo, on long-term (1 year) contracts, it's more likely they're housed in dongas in a caravan park than in a hotel. Unless it's a pub-style hotel with rooms and a shared bathroom (stayed in plenty of them myself when doing field work), or a cheap motel (stayed in plenty of them too) with a deal done for guaranteeing occupancy for a year or so.

[how good is he]

To BSK, another reason some projects don’t go to tender is if the building company [or its directors etc] have a financial stake in the actual development so they are part of the development team also. Sometimes deals are also done that they agree to purchase apartments and/or invest in the project on the basis they will be given the building work. It may also help to get the project financed and out of the ground without needing/relying on pre-sales first to the open market.

[SBD]

What should happen doesn't always happen.

I am sure that you heard of 'preferred tenderers', where other builders essentially don't even get a leg in. I didn't even see this project go out to tender and just heard that Maxcon were awarded (gifted) the job. Likewise, what also happens is that Maxcon has a propensity to use Melbourne resources and award sub-contracts to Melbourne contractors. Call it a "very insular perspective" if you like, but it does little for employment in SA.

I guess that depends on the definition of "employment in SA". All of the people working on site are working in SA. I guess a few of them could be fly-in, fly-out from Melbourne, increasing the occupancy of Adelaide's hotels. Most of them are likely to live here, at least for the duration (12 months?) of the build. During that time, they are SA residents working in SA, and various laws would require them to have SA drivers licenses and electoral enrolments. I think that makes them "South Australians".

How would it make sense economically to fly construction workers in from Melbourne and pay for them to stay in hotels when you could easily and cheaply source them locally instead?

I doubt it would in the general case, but there could be specific skills required where the builder wants a particular person. I have known of someone who "commuted" weekly from Geelong (he had been laid off by Ford) to work at Mitsubishi while leaving his wife and children in their home. I've known professional/academic couples who both have high-level jobs based in different cities, so one or both of them commute weekly to work interstate. I don't have any idea about the building industry to say if these are possibilities. I would expect most on-site workers to live in the city they are building in, just like you.

[EBG]

They were actually piling Saturday afternoon. The piling rig seems rather tall so the piles must be quite deep. Click on pictures for bigger.