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 $1,327,200 for the project, comprising $354,200 in
the current 2017/18 financial year and a further $973,000 identified in the draft 5 year capital
program. Included within the project budget is $663,429 grant funding received from the Federal
Government Bridge Renewal Program Round 3. Funding was also received for the replacement
of the Old Noosa Road and Orealla Road bridges.
The allocated funding for the replacement of the Mary River Road Bridge is currently insufficient
to complete the project as per the table below:

 Item                                                           Cost (excl. GST)

 Costs to Date (April 2017)                                              $59,726
 Tendered Contract Value                                              $1,495,399
 Consultant, superintendent and staff costs                              $60,473
 Qleave and other permits                                                $10,000
 Relocation of services (Energex, Unitywater)                          $335,000

 Subtotal                                                             $1,960,598
 Contingency (10%) On tendered value                                   $149,540
 Total Project Cost                                                   $2,110,138

The current project cost estimate is significantly higher ($783k) than current allocated funding
due to following reasons:
      Timing of previous budget and grant submission based on early estimates;
      Energex Services costs increased from $60,000 to $280,000;
      Other relocation services are costing more than expected;
      Market factors for bridge projects has increased the tender value.
It is expected that the total costs allocated in Council’s 5 year capital program for the
replacement of the three bridges will be able to absorb the increase in the Mary River Road
project, as savings will be achieved in the other two bridge replacement projects.
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
Power, communications, water and      Undertake review of service authority proposals aiming to
sewer service relocations cost more   influence most cost effective solution.
than current forecast.
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     Previous geotechnical investigations and an agreed lump sum for
for contractor claiming variation     the contract has mitigated much of this risk.
costs.                                The contract allows depth cost adjustments and tender provided a
                                      fixed rate for pile extension.

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