Construction for worker dwellings will take place in Western Australia following a state government contract with a local company to build and operate the village.

Fleetwood Corporation was awarded the $20.5 million contract to build the Osprey Service Workers’ Village in South Hedland to provide dwellings for 293 service workers.

The project has been funded through the federal government’s Royalties for Regions program to increase local living options.

As a collaboration between the Department of Housing, the Department of Regional Development and Land’s Pilbara Cities Office and the private sector

Regional Development and Lands Minister, Brendon Grylls said the project is one of the key initiatives the government is undertaking to ease the pressure on housing and high rents in the Pilbara.

Mr Grylls said there is an immediate need to house service workers in the region, with “significant progress” made on fast tracking land and housing developments in Port and South Hedland.

Minister for Housing, Terry Redman said Fleetwood Corporation was selected as the project’s preferred proponent after a Request for Proposal process.

The Department of Housing initiated this process earlier this year inviting the private sector to submit ‘value-for-money’ and ‘innovative’ designs.

“After a careful evaluation process, Fleetwood was awarded the contract to deliver 293 one, two and three-bedroom accommodation units at the Osprey site,” Mr Redman said.

According to the WA Government, the residential village’s construction will begin in September this year with 80 units expected to be completed by December, with 7000 delivered in Hedland by 2017.