2017-12-12 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                            12 DECEMBER 2017


Risks & Opportunities

Financial risks
 Client request for scope changes. This will be mitigated through Project Control Group
   management and limitation of client requested scope variations.
 Latent conditions. Typically a geotechnical risk, previous investigations have mitigated much
   of this risk. There is some residual risk associated with the large amenities refurbishment and
   potential hidden defects that will be carefully monitored.
 Costs relating to service connections such as Energex and Unity Water. This has been
   mitigated through careful investigation of the scope requirements with some allowances
   based on industry experience for similar constructions.
 Variation risks. This has been partly mitigated through the lump sum construction
   procurement method with further mitigation through post-tender clarifications, committing
   Midson Constructions firmly to the scope of works.
 Contingency amount being insufficient. This risk may be mitigated through the adoption of
   saving options negotiated with Midson Constructions. The risk profile for the nature of the
   construction for this project has also informed an appropriate allocation of contingency level.
 Customer dissatisfaction leading to lost revenue. This has been mitigated by careful
   management of pre-bookings and the development of a construction schedule that seeks to
   minimise as much as possible impact on patrons, including limited daily works hours,
   downtime during peak holiday periods, on-site pedestrian and traffic management.

Time risks
 Wet weather delays. Construction during the typically dry season aims to mitigate this. Some
   wet-weather day allocations have been built into the program.
 Delays in obtaining final approvals have been built into the pre-construction program.
 Delays from complex activities such as asbestos removal have been mitigated through
   previous investigations of extent of asbestos and industry-advised timeframes for this type of
   activity being built into the program.

Safety Risks
 Midson Constructions will be appointed as the Principal Contractor and responsible for
   Workplace Health and Safety (WHS) of the construction sites. Prior to construction
   commencing, WHS and pedestrian and traffic management plans will be required to be
   submitted to Council for approval. Council will undertake regular audits on contractor
   compliance with these approved plans throughout construction.
 Asbestos removal. Only licensed and accredited subcontractors will be used for this activity,
   and a safety management plan will be submitted for approval by them prior to
   commencement of this activity.

Scope & Quality
 The risk of meeting project objectives will be managed via Council staff reviews supported by
   specialist consultants who developed the performance specifications.

Resourcing
 Midson Constructions have nominated a highly capable team for this project limiting the
   resourcing risks to this project. Council will engage an external superintendent and
   architectural / engineering consultants to further mitigate any risk.




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