The $1.3m tender, awarded to local company Shelford Construction Pty Ltd, will allow construction of a new administration office, upgrade of an existing on-site workshop, along with installation of a hardstand, fencing, lighting and CCTV.
The additional $1 million has been allocated for land acquisition and planning.
To date, 47 per cent of subcontractor awards have been granted to local Peel and South-West businesses.
Demolition, earthworks and civil works will be carried out by Carbone Bros Pty Ltd from Brunswick Junction, electrical services delivered by Bay Electrical Service from Mandurah, and hydraulic services performed by Ocean Edge Plumbing & Gas Pty Ltd based in Erskine.
The Harries Way bus depot is expected to be completed in early 2020, and will initially house nine buses. When fully-developed, it will be able to host about 30 buses.
The new site will take significant pressure off of the Mandurah Depot, which is currently at capacity.
Currently, Pinjarra buses must travel 18km from the Mandurah Bus Depot before they can enter service. They also need to travel back at the end of their shift.
"Dead running" (operating without passengers) for such a long distance creates significant costs for extra fuel and maintenance. Reducing dead running minimises the risk of timetable delays if a bus gets stuck in traffic on the way to its starting point.
Comments attributed to Transport Minister Rita Saffioti:
"Once complete, the new Pinjarra bus depot will take pressure off the Mandurah depot and create savings for tax payers by reducing the amount of buses travelling without passengers.
"The $1.3 million tender has been awarded to local company Shelford Construction with almost half of the subcontractor contracts awarded to local Peel and South-West businesses, supporting local jobs.
"Expected to be completed in 2020, the depot will initially house nine buses, reaching capacity at 30 buses when it is fully developed."
Comments attributed to Murray- Wellington MLA Robyn Clarke:
"The new bus depot is a huge win for the local Pinjarra community - not only is 47 per cent of the work being done by local Peel and South-West businesses, but it opens up the possibility of increased future bus services in our local area.
"I speak to local Pinjarra residents all the time and they continually raise the issue of public transport with me.
"While this is a big step forward, I know how important increased bus services are to our community, and that's something I am continuing to fight for."
Minister's office - 6552 5500