2019-10-08 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                       8 OCTOBER 2019


The analysis takes a conservative approach regarding operations and maintenance to ensure
that Council can appropriately and adequately consider financial sustainability impacts on
Council and the community.
A new lease is to be established with the Peregian Beach Community House that will consider
the new operational costs and any potential opportunities to offset.

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.
publicly visible.
Geotechnical conditions give rise for contractor     Pre tender geotechnical investigations, and
claiming variation costs.                            specifically drafted contract conditions have
                                                     mitigated much of this risk
Contractor claims for variations based on changes    This has been mitigated through the lump sum
required for design.                                 design and construct procurement method with
                                                     further mitigation to be managed through the
                                                     Project Control Group.
Clashes with underground services give rise for      The contract conditions require full investigations
contractor claiming variation costs.                 by the contractor before proceeding with work. Pre
                                                     tender “Dial before you dig” report on the entire
                                                     site has concluded that the likelihood of clashes
                                                     that would give rise to a latent condition is
                                                     mitigated. This report is part of the tender
                                                     documents.
Contingency amount being insufficient                This project has a reasonable level of contingency
                                                     at 20% and the site is considered relatively low
                                                     risk, hence unlikely to be a high risk.


Program Risks                                        Mitigation
There is the potential that the project is delayed   The site is to be managed to minimise lost time
due to above average wet weather                     from weather. The site is predominantly free
                                                     draining sand and generally lower risk of effects of
                                                     wet weather. The project can be delayed for up to
                                                     4 months before impacting the funding deadline.
                                                     The project has contingency measures to mitigate
                                                     knock on effects to other stages.
Resource risk                                        The project has no unusual construction
                                                     requirements. All construction components can be
                                                     filled by experienced local contractors if required.
                                                     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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