2018-05-14 General Committee Meeting Agenda

GENERAL COMMITTEE MEETING AGENDA                                                              14 MAY 2018


Previous Council Consideration

Nil

Finance & Risk

Council has provisionally allocated a total of $1,750,000 for the project, comprising $130,200 in
the current 2017/18 financial year and $1,619,800 in the draft 5 year capital program.

The allocated funding for the replacement of the Old Noosa Road Bridge is sufficient to complete
the project as per the table below:

                           Item                               Cost (excl. GST)
Costs to Date (April 2017)                                                 $48,052
Tendered Contract Value                                                 $1,232,486
Consultant, superintendent and staff costs                                 $95,000
Qleave, permits                                                            $10,000
Relocation of services (Telstra)                                           $10,000


Subtotal                                                                $1,395,538
Contingency (10% on tendered contract value)                              $123,248
Total project cost                                                      $1,518,786

Included within the project budget is $875,000 grant funding received from the Federal
Government Bridge Renewal Program Round 3. Funding was also received for the replacement
of the Mary River Road and Orealla Road bridge replacements.

Overall funding received for the three bridges is currently being discussed with Federal and State
Government representatives with the aim of smoothing project costs within the total grant funding
pool received, given changes in the cost mix between the bridges since the original grants
applications were submitted.

Risks & Opportunities

FINANCE RISKS                                                      MITIGATION
Project scope increases.                 This is to be mitigated through Project Control Group and
                                         Capital Works Executive management and limitation of client
                                         requested scope variations.

Community requests for scope             Council acceptance of scope as awarded with intention of not
changes once construction                increasing scope.
commences and project becomes
publically visible.

Geotechnical conditions give rise for    A thorough Geotechnical investigation has been completed by
contractor claiming variation costs.     Council and the report provided as part of the tender
                                         documentation. As such the risk of variation to the piling
                                         activity has been reduced as much as possible.

Contractor claims for variations based   This has been mitigated through the lump sum procurement
on changes required for design.          method with further mitigation through post tender
                                         clarifications tying the contractor firmly into the agreed scope
                                         of works.


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