2022-05-16 General Committee Meeting Agenda

GENERAL COMMITTEE MEETING AGENDA                                                           16 MAY 2022


                       to charge a premium due to the increase in value of their services in the
                       marketplace.
                      Given the work to date in the Black Mountain Road area, Erscon are very
                       familiar with the local residents and have developed a positive rapport that
                       Council can continue to leverage.
                      Using a Sunshine Coast based supplier benefits the contract with Noosa
                       Council as the supply of services will be reduced to lower travel costs and
                       very little/no accommodation costs.
                      Erscon have already demonstrated a working methodology to reduce the
                       administration cost by undertaking work during the Emergency Works
                       phase making sure the administration is reduced.
        b.      Development of competitive local business and industry
                      The recommended supplier is based in the Sunshine Coast Council region
                       and have indicated that this work provides local employment opportunities
                       within the wider region.
                      Erscon have committed to working with Council on finding opportunities to
                       support local suppliers throughout the design and construction phase of the
                       projects. They provided evidence of how this was achieved on other
                       projects in other regions.
        c.      Open and effective competition
        Erscon were placed on Local Buy Arrangement LB279 Project Management Services
        (LGA arrangement) as a result of an open/public tender process conducted by Local
        Buy, constituting an LGA Arrangement under the Local Government Regulation 2012.

   Finance
   The estimated costs of the $2,000,000 of Project Management fees consultant are funded
   by DRFA.
   The only cost to Council will be the non-recoverable portion of the estimated cost of
   $100,000, which is proposed to be funded from the Disaster Management Reserve.

   Risks & Opportunities
    Finance Risks                            Mitigation
    Unrecoverable costs are                  Contract KPI will include a target of 100% of costs must be
    encountered                              within the DRFA guidelines and cost fully recoverable
    Program costs exceed the                 Consultant reporting cadence includes a monthly report
    Estimated Value approved by QRA          forecasting next three months and confirming actuals for
                                             prior month.
                                             This also falls in line with DRFA guidelines to ensure
                                             variation management prior to final acquittal in September
                                             2024.


    Timing Risks                             Mitigation
    Delays to Contract Award affecting       Contract Award and contract documents transmitted to
    the ongoing work consultant has          contract as soon as Contract award is approved.
    been conducting.
            ensure consultant can have
             suitable time to develop the
             planning for over 20 sites
             and     have     applications

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