2019-12-16 Special Meeting Agenda

SPECIAL MEETING AGENDA                                                                16 DECEMBER 2019


Finance
Council has allocated a total of $1,318,214 in the current (FY2019/20) budget. The below table
identifies the estimated project costs.

 Item                                                                            Cost (excl. GST)

 Costs to date (November 2019)                                                              $19,659
 Tendered Contract Value (ex. GST)                                                       $1,230,934
 Staff and other project costs                                                              $45,000
 SUB TOTAL                                                                               $1,295,593
 Contingency                                                                              $129,559
 TOTAL BUDGET                                                                            $1,425,152

A budget review submission will be required at BR3 to reflect the $106,938 shortfall in the current
approved budget, should the full contingency amount be required.


Risks & Opportunities
                  RISKS                                                MITIGATION
 Finance
 Council request for scope increases.         This will be mitigated through the Capital Works Project
                                              Control Group and Capital Works Executive management and
                                              limitation of client requested scope variations.
 Geotechnical conditions give rise for        Previous site conditions have been considered and significant
 contractor claiming variation costs.         latent conditions are not expected.
 Clashes with underground services give       There are no major underground services expected within the
 rise for contractor claiming variation       area of work. The contractor is required to identify and protect
 costs.                                       those that are discovered.
 Contingency amount being insufficient        This risk may be mitigated through the adoption of further
                                              value engineering to occur during the construction phase
                                              process.
 Program
 There is the potential that the project is   The contractor is required to include “wet weather” allowances
 delayed due to wet weather                   into their schedule.
 Construction takes longer due to site        In the event of delays the contractor is able to mobilise
 being more constrained than allowed.         additional equipment to bring the program on track.
 Resource risk                                The contractor is utilising local subcontractors and is confident
                                              in their ability to resource effectively from the local market.
 Safety
 This is a medium risk project due to         Prior to construction commencing, work place health and
 proximity to rural traffic environment.      safety and traffic management plans will be required to be
                                              submitted to Council for review. Regular audits on contractor
                                              compliance with these approved plans will be undertaken by
                                              Council throughout construction.
 Environmental Harm
 There is risk that the works impact on       The works are in the existing road corridor which is typically
 existing vegetation.                         clear of mature trees.
 Risk of sedimentation/run-off.               Contractors are required to have an environment management
                                              plan which will be reviewed and approved by Council prior to
                                              commencement.

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