2019-06-11 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                        11 JUNE 2019


6.      Construction Management and Inspections
Under the construct-only delivery model, Council will maintain the overall project management
role. This will be supported by an externally-appointed superintendent. Specialist architectural
and engineering consultants, appointed by Council, will progressively inspect the work to ensure
project objectives and approval conditions are met. In addition some specific plumbing elements
will be inspected by Council staff as part of the regulatory approvals process required under the
Plumbing Act.
Previous Council Consideration
Ordinary Meeting, 17 December 2015, Item 7, Page 9
That Council note the report by the Executive Officer to the Planning & Organisation Committee
Meeting dated 8 December 2015 and:
A.      Agree to engage a multi-disciplinary consultancy to prepare a Master Plan for the Noosa
        North Shore Beachfront Campground in order to inform Council of requirements,
        associated costs and staging options for upgrading the facility retaining a “nature-based”
        low impact approach to the site and style of facilities provided; and
B.      Include additional funding of $50,000 in the next quarterly budget review process for the
        project.

Finance
The current 2018/2019 budget for the project is $100,000, to allow completion of the approvals
process and allocate a small portion of preliminary construction costs. Council are currently
finalising the draft 2019/20 10 year capital budget and a preliminary allocation of $2,410,000 has
been included for approval; however note that this is subject to budget adoption on 28 June
2019.
The total budget for the construction of Stage 1 works for the project is as follows:
     Item                                                     Cost

     Costs to date (2018/19 FY)                                 $45,652
     Tendered Contract Value – Stage 1 construction          $2,275,678
     Council Project Manager                                     $5,000
     Superintendent                                             $60,000
     Engineering & Architectural Consultants (Structural,       $20,000
     Electrical, Mechanical, Building)
     QLeave (on $2.28M)                                         $10,809
     Subtotal                                                $2,417,139
     10% Construction Contingency                              $227,567
     Total                                                   $2,644,706
     Project Budget (total 2018/19 & 2019/20)                $2,510,000

Risks & Opportunities
Finance risks include:
      Cost of construction exceeding budget. Current estimates place stage 1 construction costs
        exceeding the total 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 Council’s Capital 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 amenities block
        refurbishment and potential hidden defects that will be carefully monitored.

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