2018-03-01 Special Meeting Agenda

SPECIAL MEETING AGENDA                                                                      1 MARCH 2018


Risks & Opportunities


FINANCE RISKS                                        MITIGATION
Council request for 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 changes once            Council acceptance of scope as awarded with
construction commences and project becomes           intention of not increasing scope.
publically visible.
Geotechnical conditions give rise for contractor     Previous geotechnical investigations combined with
claiming variation costs.                            utilisation of expert contractors, specifically drafted
                                                     contract conditions and an agreed payment process
                                                     for piling has mitigated much of this risk
Contractor claims for variations based on            This has been mitigated through the lump sum
changes required for design.                         design and construct procurement method with
                                                     further mitigation through post tender clarifications
                                                     tying the contractor firmly into the agreed scope of
                                                     works.
Contractor claims for variations based on costs      As above, this has been mitigated through the lump
for environmental impact mitigation exceeds          sum design and construct procurement method with
allowances.                                          further mitigation through post tender clarifications
                                                     tying the contractor firmly into the agreed scope of
                                                     works
Clashes with underground services give rise for      Majority of project is outside of influence of
contractor claiming variation costs.                 underground services that would give rise to a
                                                     latent condition
Contingency amount being insufficient                This risk may be mitigated through the adoption of
                                                     further value engineering to occur during the
                                                     detailed design process.




PROGRAM RISKS                                        MITIGATION
There is the potential that the project is delayed   Construction during the typically dry season aims to
due to wet weather                                   mitigate this.
Piling operation takes longer due to site being      The contractor has nominated a range of
more constrained than allowed.                       equipment capable of constructing the piling from
                                                     large excavator mounted piling rig down to man
                                                     held portable piling rig capable of running
                                                     concurrently to reduce risk of delays from the piling
                                                     operation. In the event of delays, the contractor is
                                                     able to mobilise additional equipment at no
                                                     additional cost to bring program on track.
Materials supply, including Accoya timber            The contractor has been in contact with industry
product, which is supplied from overseas.            suppliers providing updates on project timing. This
                                                     will be monitored throughout the project. In event
                                                     Accoya is not able to meet programme, propose to
                                                     seek Capital Works Executive approval to
                                                     substitute Accoya for hardwood.
Resource risk                                        Hutchinson Builders have nominated a capable
                                                     team undertaking construction at up to three work
                                                     fronts at one time reducing the resourcing risks to
                                                     this project. The appointment of an external
                                                     superintendent and design review consultant
                                                     mitigates the resourcing risk for Council.
Structure construction takes longer than allowed     The contractor is well resourced with an ability to
for.                                                 increase crews to reduce risk of delays.




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