2019-06-11 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                      11 JUNE 2019


The total budget for the construction of the Peregian Beach Amenities Block is as follows:
                                     Item                                       Cost Excluding GST
 Costs to date (2018/19 FY)                                                             $ 49,004.00
 Tendered Contract Value – Stage 1 construction                                         $ 497,635.78
 Council Project Manager                                                                $ 5,000.00
 Superintendent                                                                         $ 35,000.00
 Engineering & Architectural Consultants (Structural, Electrical, Mechanical,           $ 18,000.00
 Building)
 QLeave (on $497k)                                                                      $ 2,363.77
 Subtotal                                                                               $ 607,003.55
 Contingency - construction                                                             $ 49,763.58
 Total                                                                                  $ 656,767.13
 Project Budget (total 2018/19 & 2019/20)                                               $ 647,000.00
Risks & Opportunities
Finance risks include:
   Cost of construction exceeding budget. Current estimates place stage 1 construction costs
     exceeding the budget allocation. This risk (of potential cost variations) will be managed
     through Council’s Capital Project Control Group management and if required the budget
     review process during 2019/20.
   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 demolition of the existing
     amenities block and waste bin areas and potential hidden defects that will be carefully
     monitored.
   Costs relating to service connections such as Unitywater. This has been mitigated through
     careful investigation of the scope requirements and management of the approvals process.
   Variation risks. This has been partly mitigated through the lump sum construction
     procurement method with further mitigation through post-tender clarifications, tying Ri-con
     Contractors Pty Ltd firmly into the scope of works.
   Contingency amount being insufficient. This risk may be mitigated through the adoption of
     saving options negotiated with Ri-con Contractors Pty Ltd. The risk profile for the nature of
     the construction for this project has also informed an appropriate allocation of contingency
     level.
Time risks include:
   Wet weather delays. Construction during the typically dry season aims to mitigate this.
     Some wet-weather day allocations have been built into the programme.
   Delays in obtaining final approvals. These have been built into the pre-construction
     programme.
   Delays from procurement of complex activities such as the rammed-earth wall construction.
     This has been mitigated through careful liaison with suppliers during the design process,
     whose advice in turn has informed the construction programme.
Safety Risks:
   Ri-con Contractors Pty Ltd will be appointed as the Principal Contractor and responsible for
     Workplace Health and Safety of the construction sites. Prior to construction commencing,
     workplace health and safety 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.
   Construction in a public space. Council will liaise carefully with Ri-con Contractors Pty Ltd
     prior to construction commencing, to work through the safety and logistical challenges of
     demolishing and construction works in a busy, highly public space. Ri-con will provide a
     detailed Safety Management Plan for approval prior to commencing work that will discuss


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