2021-12-01 Special Meeting Agenda

SPECIAL MEETING AGENDA                                                                 1 DECEMBER 2021


8.     Construction Management & Inspections
The current delivery model has Council in the project management and superintendent roles. Council
resourcing to support the project are in place with specialist consultants available to provide quality
assurance and technical advice as necessary.
Previous Council Consideration
Nil.
Finance
The revised project total of $8,950,000 is $3,684,000 higher than the original multi-year budget of
$5,266,000 as per the budget section of this report.
The project cost is fully Council funded and within the multiyear project budget allocation endorsed
by Council’s Capital Works Program. The Funding over the 2021/22 and 2022/23 financial years is
summarised in the table below:
Table 3. Multiyear Project Budget
 Item                                                     21/22FY             22/23FY                   Total
 Revised Estimate                                       $4,595,000          $4,355,000             $8,950,000
 Budget                                                 $2,110,000          $3,156,000             $5,266,000
 Difference                                             $2,485,000          $1,199,000             $3,684,000

This shortfall will be funded through additional loan borrowings through the QTC annual loan
borrowing program for capital works, and the deferral of other major 2022/23 waste management
capital works (including the resource recovery area upgrade) to later financial years pending
completion of the site’s ‘master plan’ and configuration review.
Risks & Opportunities
 Finance Risks                      Mitigations
 Final contract value exceeds       Investigations related to sites available material have been included in
 allocated budget.                  contract to reduce the risk of variations during the works.
                                    Extensive scoping of works under contract contains provisional items
                                    and quantities to reduce the risk of variations during the works.
                                    BOQ interrogation and sensitivity reviews have confirmed confidence
                                    in the project budget allowance.
                                    Project contingency of approximately 10% has been made for the
                                    project.


 Time Risks                         Mitigations
 Delays affecting the cell          Early tender award allows early procurement of critical materials with
 construction                       long lead times.
                                    Wet weather allowance to program have been included in the contract
                                    documents.
                                    Hazell Bros (Qld) Pty Ltd programs shows completion prior to the cell
                                    expansion June 2022 deadline.
                                    Hazell Bros (Qld) Pty Ltd have been clearly informed of the critical
                                    nature of the cell expansion works and can escalate construction if
                                    required.
                                    Waste department have prepared several strategies to extend waste
                                    operations if required. Waste operations will regular monitor waste
                                    operations.




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