2021-12-01 Special Meeting Agenda

SPECIAL MEETING AGENDA                                                              1 DECEMBER 2021


and extension of the existing gas infrastructure. Other benefits of early works include reducing the
risk of interactions with the landfill’s operations contractors (such as Cleanaway and LMS Energy)
reducing program risk and cost variation from either party.
All early works are programmed for completion before the construction program milestones, enabling
the completion of the expansion and capping works as planned. If required, the contractor may be
requested to assist with early works if beneficial to the project’s delivery.
4.      Budget
The original multiyear budget for the project is $5,266,000.
Following approval of tender acceptance, the multiyear project budget will be $8,950,000 and is
inclusive of all costs to date, design, project management, early works, demolition, and construction
as per the following breakdown:

Table 1. Project Cost Breakdown (multiyear)
     Work Item                                                    Cell Expansion          Cell Capping
     Design & Planning                                                  $200,000              $200,000
     Permits                                                              $20,000              $25,000
     Procurement                                                          $10,000              $15,000
     Project Delivery / Quality Management                              $300,000              $300,000
     (Internal & External)
     Construction                                                      $4,065,000           $3,815,000
     Inclusive of Early works, Demolition, Tendered works &
     provisional items, and on costs
     Sub Total                                                         $4,595,000           $4,355,000
     Summed Total                                                                           $8,950,000

The revised project budget of $8,950,000 is $3,684,000 higher than the original multi-year budget of
$5,266,000. This increase is due to the combination of the following differences from the original
2020 project estimate:
       Addition of design and construction of SW5 HES Basin, dosing system, clean water drains,
        dirty water drains, and subsequent demolition, vegetation clearing, and revegetation works.
       Addition of design and construction of Cell 2.2 expansion requirements, and subsequent
        extension of perimeter road.
       The final Cell 1.1 expansion limits (area) being larger than the original design estimate.
       Ground conditions beneath Cell 1.1 being poorer than original expectations, requiring an
        engineered subgrade treatment.
       The original cost estimate was based on earthen materials (i.e. clay) being available on site.
        Geotechnical investigations indicate limited suitable clay material is available on site requiring
        alternative capping designs and material imports in addition to the original estimate.
       The current market is experiencing a shortage in material and contractor availability,
        disincentivising market competitiveness.
The projects budget shortfall and funding resolution is discussed further below within the Finance
section of this report.
5.      Tender Process
Due to the forecasted construction cost for the packaged landfill works being greater than $200,000,
staff prepared and invited written tenders in accordance with the Local Government Act 2009. ITT
No. T000059 was released via VendorPanel on 27 September 2021 and advertised in Noosa Today
on 30 September 2021. The tender closed on 29 October 2021 with four (4) conforming submissions
received.




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