2019-12-16 Special Meeting Agenda

SPECIAL MEETING AGENDA                                                                  16 DECEMBER 2019


The below table identifies the estimated project costs.

 Item                                                                          Cost (excl. GST)
 Costs Year to Date (November 2019)                                                     $97,800
 Tendered Contract Value                                                             $2,619,227
 Consultants, superintendent and staff costs                                           $170,000
 Provision for relocation of services (Telstra)                                        $210,000
 Subtotal                                                                            $3,097,027
 Contingency                                                                           $619,405
 Total project cost                                                                  $3,716,432

A budget submission will be provided for the $1,961,918 shortfall across BR3 (2020) and the 2021
capital works program to reflect the expected project cash flows as provided by the successful
tenderer.

8.      Risks & Opportunities

                  RISKS                                                 MITIGATION
 Finance
 Council request for scope increases.         This is to be mitigated through the Capital Works Project Control
                                              Group and Capital Works Executive meetings and limitation of
                                              client requested scope variations.
 Scope changes once construction              Council acceptance of scope as awarded with intention of not
 commences and project becomes                increasing scope.
 publically visible.
 Geotechnical conditions give rise for        A preliminary Geotechnical investigation has been completed
 contractor claiming variation costs.         by Council and the report provided as part of the tender
                                              documentation.
                                              The contractor has confirmed they have allowed for
                                              comprehensive geotechnical investigations during the design
                                              phase.
                                              There is a risk that soil conditions may not allow for the
                                              proposed foundation method and the contractor will need to
                                              revert to the specified pile solution. This risk sits with the
                                              Contractor but the project team has considered it as part of its
                                              contingency allowance.
 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.
 Clashes with public utility providers give   Prior tender phase, Council staff had extensive collaboration
 rise for contractor claiming variation       with utility providers UnityWater and Telstra to lock in the scope
 costs.                                       and work method. The contractor is aware of the requirements.
                                              The contractor will coordinate activities around these
                                              relocations. While Telstra will invoice Council directly for the
                                              relocation works, UnityWater will pay for the renewal of the
                                              water main attached to the bridge as the asset was already
                                              identified as end of life.
 Contingency amount being insufficient.       This risk may be mitigated through the adoption of further value
                                              engineering to occur during the design and construction phase
                                              process as well through appointment of experienced contractor
                                              and contract supervision of an internal experienced
                                              Superintendent.



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