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2022-11-30 Special Meeting Agenda
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AGENDA
Special Meeting
Wednesday 30 November 2022
commencing at 4.30pm
Council Chambers, 9 Pelican Street, Tewantin
Crs Clare Stewart (Chair), Karen Finzel, Joe Jurisevic, Amelia Lorentson,
Brian Stockwell, Tom Wegener, Frank Wilkie
“Noosa Shire – different by nature”
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Section 2
SPECIAL MEETING AGENDA 30 NOVEMBER 2022
TABLE OF CONTENTS
ITEM PAGE
1. ATTENDANCE & APOLOGIES 3
2. REPORTS 3
1 CONTRACT NO. CN00207 - FEDERAL MIDDLE CREEK ROAD RECONSTRUCTION
– CONTRACT AWARD 3
2 T000081 NOOSA WATERS LOCK AND WEIR RENEWAL – TENDER AWARD 9
3. MEETING CLOSURE 14
Page 2 of 14
Section 3
SPECIAL MEETING AGENDA 30 NOVEMBER 2022
1. ATTENDANCE & APOLOGIES
2. REPORTS
1 CONTRACT NO. CN00207 - FEDERAL MIDDLE CREEK ROAD RECONSTRUCTION –
CONTRACT AWARD
Author Project Officer – James Santifort
Infrastructure Services Department
Index ECM/ Project & Contract / CN00207 Federal Middle Creek Road
Reconstruction – Quote Award / Council Reports
ECM/ Subject / Contracting / Road Construction
Attachments 1. Evaluation Spreadsheet
– in accordance with Section 254J (3) of the Local Government
Regulation 2012 – g) negotiations relating to a commercial matter involving
the local government for which a public discussion would be likely to prejudice
the interests of the local government.
EXECUTIVE SUMMARY
• This report provides a recommendation for the contract award to the preferred supplier for
Contract No. CN00207 for Reconstruction of Federal, Middle Creek Road.
• This is a schedule of rates contract that includes all materials and services required for the
construction of the works.
• In accordance with Council’s procurement policy and procedure, an Invitation to Quote (ITQ)
was initiated and attracted eight (8) responses from six (6) suppliers.
• The evaluation panel completed the evaluation process and considered Durack Civil Pty Ltd
to be most advantageous to Council, representing the best value for money.
• The anticipated construction completion date is April 2023.
• The project is funded by the Local Roads and Community Infrastructure – Phase 3 program.
RECOMMENDATION
That Council note the report by the Project Officer to the Special Meeting dated 30 November 2022,
and award Contract No. CN00207 for Reconstruction of Federal Middle Creek Road to Durack Civil
Pty Ltd.
REPORT
1. Background
Contractor to undertake civil works for the reconstruction of a 2.1 km section of Middle Creek Road,
Federal.
The civil works and corridor improvements include but are not limited to:
• Widening to a 6m nominal formation, generally to be achieved by sealing of road shoulders.
• Lime stabilisation of subgrade to improve base characteristics.
• Installation of a centreline for the length of the carriageway upgrade works.
• Installation of additional warning signage where necessary to mitigate any identified geometry
deficiencies.
• Drainage reinstatement and/or improvement.
Page 3 of 14
Section 4
SPECIAL MEETING AGENDA 30 NOVEMBER 2022
In accordance with Chapter 6, Part 3 of the Local Government Regulation (LGR) and Council’s
Procurement Policy, Council invited written quotes for the Reconstruction of Federal Middle Creek
Road and issued as a schedule of rates contract.
Council invited the written quotes from select suppliers within the Local Buy Pre-qualified supplier
arrangement for Road, Water, Sewerage & Civil Works - BUS270 which is in accordance with S234
of the LGR via the Council VendorPanel e-portal on 18 October 2022, with responses closing on 1
November 2022.
Invitations were sent to 44 suppliers with responses received from six (6) suppliers. Two (2) suppliers
also nominated alternative proposals for consideration in addition to submitting tenders as per the
specifications, therefore eight (8) submissions in total were assessed.
2. Quote Evaluation
The quotes were evaluated using Council’s Weighted Attribute Evaluation spreadsheet against the
following evaluation criteria and weightings:
Criteria Weighting
Price 40%
Capability & Resourcing 10%
Contract Experience & Capacity 10%
Methodology & Program 25%
Management Systems
10%
(Safety, Environment & Quality)
Contribution to Local Economy 5%
The evaluation was conducted by the Evaluation Panel that consisted of the following members of
staff:
• Project Officer (Contract Administrator)
• Designer - Capital Works
• Contract & Projects Superintendent (Non-scoring member, contractual review only)
• Project Officer
• Workplace Health and Safety Officer (Safety Only)
Each member of the Evaluation Panel read and declared that they understood and accepted the
probity requirements, which included a declaration of conflicts of interest and confidentiality.
A series of post close clarifications were undertaken to address anomalies and qualifications in the
submissions received, and to ensure all schedule of rates items were priced on the same basis by
all suppliers and to allow a fair comparison.
The two alternative submissions proposed cement stabilisation as opposed to lime stabilisation as
required in the Contract specification. The alternative submissions were deemed unacceptable after
advice from the design consultant ruled out cement stabilised pavements due to the existing
subgrade characteristics.
Exceed Concrete Constructions Pty Ltd’s submission was deemed non-conforming as key response
requirements, including methodology and program information, were not supplied. This submission
was not considered further in the evaluation process.
Oaka Construction Pty Ltd was not considered or evaluated further due to disproportionately higher
pricing.
Page 4 of 14
Section 5
SPECIAL MEETING AGENDA 30 NOVEMBER 2022
The remaining four (4) submissions were shortlisted (in alphabetical order), i.e.:
• Bellwether Contractors Pty Ltd;
• Brown Contractors;
• Durack Civil Pty Ltd; and
• Pentacon Pty Ltd.
Attachment 1 – Evaluation Spreadsheet presents the evaluation scoring outcome of the shortlisted
submissions against the above criteria. The final score difference between the top two (2) suppliers
was 0.05 points, as follows:
• Brown Contractors; 95.97 points
• Durack Civil Pty Ltd 95.92 points
Durack Civil Pty Ltd submitted the lowest price, based on responses received during the clarification
process and pricing all submissions on the same basis, being $250,949.74 (GST exclusive) lower
than that submitted by Brown Contractors.
The evaluation panel completed the evaluation process and considered Durack Civil Pty Ltd to be
most advantageous to Council, presenting the best value for money. Whilst being ranked marginally
2nd, the evaluation panel confirmed Durack’s ability to undertake the works and meet the
specifications and requirements. This included obtaining favourable comments from references for
whom they have completed similar works previously. The $250,949.74 (GST exclusive) price
difference allows more of the project scope to be completed under the current approved budget
providing a greater benefit to the community.
Durack Civil Pty Ltd’s quote submission demonstrated the following:
• A high level of previous experience undertaking projects of similar size and scope;
• Provided a detailed design and construction methodology and program which aligns to the
contract specifications;
• Adequately resourced;
• Certified Environmental Management System (ISO 14001:2015);
• Certified Quality Management system (ISO 9001:2015);
• Certified Workplace Health and Safety system (AS/NZS 4801:2001);
• Comprehensive policies and procedures to manage safety, quality and environmental impacts
throughout the contract.
3. Next Steps
Once awarded, the Federal Middle Creek Road Reconstruction will commence on or around 19
January 2023 with the aim to achieve practical completion before April 2023.
Previous Council Consideration
Nil
Page 5 of 14
Section 6
SPECIAL MEETING AGENDA 30 NOVEMBER 2022
Finance
It was identified prior to the invitation to quote process that the approved budget was not enough to
complete the entire scope of the project. Council invited quotes on a schedule of rates basis to
facilitate a scope reduction to fit within the budget. The scope will be confirmed with Durack Civil Pty
Ltd on award.
The funding sources for the project are detailed in the table below.
Funding Source Amount (GST excl.)
Local Roads and Community Infrastructure – Phase 3 Fund $1,292,692
Council Capital $0,000,000
Total Funding $1,292,692
Risks & Opportunities
Finance Risks Mitigation
Budget Overrun Council will engage contractor under schedule of
rates contract and work with contractor to ensure the
project scope fits within approved budget. Further
project scope increase will be mitigated through
ongoing and stringent monitoring and controls by the
project working group and the Capital Works Project
Control Group and in regular reports to Capital
Works Executive meetings.
In defining the detailed scope of works, contingency
will be allowed to address unforeseen risks.
Material price increases Council will engage contractor under schedule of
rates contract with locked in material rates not
subject to rise and fall. A relatively short contract
period is expected which mitigates this risk.
Contractor becomes insolvent Council has carried out a financial viability check on
the preferred contractor which proved acceptable.
The contractor appears to be a well-established
contractor.
Program Risks Mitigation
Delays due to wet weather. Extensions of time over and above those provided in
the quote are assessed by the Superintendent. The
project is commencing in a traditionally wet period
and the risk is considered medium-high.
Contingency will be included in finalising the scope
of work to make reasonable allowance for inclement
weather.
Resource risk The contractor has nominated a capable and
experienced project team to undertake construction.
Council’s resources to the project will be monitored
by the Project Control Group and Capital Works
Executive due to the high volume of work in the
capital works program.
Construction takes longer than allowed for The contractor is well resourced and has the
available resources to deliver this project
successfully. The risk is mitigated through the
contract, and will be closely monitored by the Project
Officer
Page 6 of 14
Section 7
SPECIAL MEETING AGENDA 30 NOVEMBER 2022
Grant funding bodies and Council will be consulted
to manage any variations to agreements that may
arise.
Lead time of materials pushing the program out Many associated risks are mitigated by ordering the
materials as soon as possible after the quote award.
The contractor is aware and will manage this risk and
work closely together with Council's project team to
minimise residual timing risk. Materials usually
associated with long lead times (culverts etc.) have
been removed from the scope.
Safety Risks Mitigation
The Contractor fails to ensure the work is conducted Prior to commencement of works, contractor will
safely and in accordance with minimum standards ensure management plans, Safe Work Method
Statements, Job Hazard Analysis (or similar), and
other documentation are submitted, reviewed, and
accepted by Council.
Council will undertake surveillance, regular safety
audits and inspections throughout the construction
period.
Environment Harm Risks Mitigation
Works impact on the environment The contractor will have a site environmental
management plan to identify and manage site
specific risks. An allowance has been made in the
contract and schedule of rates for weekly
environmental auditing.
Scope & Quality Risks Mitigation
Risk of not meeting project objectives Compliance with project objectives will be managed
through regular reviews of the contractor’s design
and construction by the Project Manager,
Superintendent and other project team members as
required.
Public Disruption Risks Mitigation
Traffic and pedestrian disruption The construction works will result in periodic
disruption to the surrounding area. This will be able
to be managed through the contractor’s traffic and
pedestrian management plan which will be reviewed
and monitored by the Project Officer and
Superintendent.
Communication issues Council’s internal Infrastructure Communications
and Consultation Officer is appointed to the project
to assist with any communication issues.
Noise from plant and equipment may be a cause of This will be minimised by working during normal
disruption to residents. working hours where possible. Work zone is in a
rural area meaning most dwellings are located far
back from road.
Page 7 of 14
Section 8
SPECIAL MEETING AGENDA 30 NOVEMBER 2022
Consultation
External Consultation
Covey Associates (Design Consultant)
Gympie Regional Council (Referee Check)
Internal Consultation
Corporate Services (Procurement), Infrastructure Services (Infrastructure Planning, Design and
Delivery), and Executive Services (People and Culture - Workplace Health & Safety).
Departments/Sections Consulted:
Chief Executive Officer Community Services X Corporate Services
Executive Support Director Director
Community Development Financial Services
Community Facilities Fleet
Libraries & Galleries ICT
Local Laws X Procurement
Waste & Environmental Health Property
Revenue Services
X Executive Services Environment & Sustainable Development X Infrastructure Services
Director Director Director
Community Engagement Building & Plumbing Services Asset Management
Customer Service Development Assessment Buildings and Facilities
Governance Economic Development Civil Operations
X People and Culture (Safety) Environmental Services Disaster Management
Strategic Land Use Planning X Infrastructure Planning,
Design and Delivery
Page 8 of 14
Section 9
SPECIAL MEETING AGENDA 30 NOVEMBER 2022
2 T000081 NOOSA WATERS LOCK AND WEIR RENEWAL – TENDER AWARD
Author Project Manager, Paul Brennan
Infrastructure Services Department
Index ECM/ Subject / Contracting / Contractors and Consultants
ECM/ Projects (T1) / T00081 Noosa Waters Lock and Weir Renewal
Attachments 1. Evaluation Spreadsheet
– in accordance with Section 254J (3) of the Local Government
Regulation 2012 – g) negotiations relating to a commercial matter involving
the local government for which a public discussion would be likely to prejudice
the interests of the local government.
EXECUTIVE SUMMARY
• The Noosa Waters Lock and Weir System was first commissioned in 1991 and a condition
assessment in 2020 identified the need for extensive renewal works along with replacement
of a number of critical elements, including the lock gates.
• Due to the forecasted construction/replacement cost staff invited written tenders in accordance
with the Local Government Act 2009.
• Invitation to Tender T000081 was released via VendorPanel with the tender closing on 20 July
2022.
• One (1) tender response was received and after consideration was assessed as suitable
(having the necessary experience and capability) by the assessment panel.
• The price submitted exceeds the current budget; however the cost increase was deemed
reasonable when measured against current market rates and an independent cost report
commissioned in April.
• The cost to undertake the necessary scope of works will be funded by an increased levy on
the waterfront residents as agreed with the Noosa Waters Residents Association.
RECOMMENDATION
That Council note the report by the Project Manager to the Special Meeting dated 30 November
2022 and award contract T000081 for the design and construction of refurbishment works to the
Noosa Waters Lock and Weir system to Kellybourke Pty Ltd for the amount of $1,822,037 excluding
GST with the understanding that the cost will be refunded to Noosa Council via the established levy
system.
REPORT
1. Background
The Noosa Waters lock and weir system was constructed by the developer and commissioned in
1991. It is chiefly comprised of an automated lock that allows passage for vessels, irrespective of
tide conditions, into and out of the canal linking the estate waters with the Noosa River, a weir that
maintains a consistent water level within the canal system, jetties either side of the lock to cater for
boat users, and a salinity transfer system that pumps saltwater from the Noosa River to the
headwaters of the canal. All elements of the lock and weir system are maintained by Noosa Council
with funding for operational works secured through a specific levy imposed on Noosa Waters
residents for this purpose.
Page 9 of 14
Section 10
SPECIAL MEETING AGENDA 30 NOVEMBER 2022
Due to its age a detailed condition assessment was commissioned in 2020 which recommended a
number of outcomes for extending the usable life of the various assets that comprise the lock and
weir system, including repairs to a number of critical items and direct replacement of other elements.
This includes replacement of the lock steel gates and actuator motors. The unique nature of the
equipment involved and the need for a detailed construction methodology led staff to seek a
specialist contractor with the expertise to undertake the design and construction activities required
in order to achieve the refurbishment outcomes.
2. Procurement Process
Due to the forecasted construction cost for the project being greater than $200,000, staff prepared
and invited written tenders in accordance with the Local Government Act 2009. Invitation to Tender
T000081 was released via VendorPanel and advertised on Council’s website on 27 June 2022, and
advertised in the Noosa Today and Sunshine Coast Daily publications on 27 June 2022. The tender
closed at 2.00pm (AEST), 20 July 2022 with one (1) tender response received. A conforming
submission was received from the following respondents:
• Kellybourke Pty Ltd
The tenderer also submitted a non-conforming tender in accordance with the procurement process
guidelines, advising an alternative pricing (further details below).
The received tender was comprehensive and provided sufficient detail to allow the evaluation panel
to undertake assessment. The tender was evaluated by the evaluation panel using the following
evaluation criteria and weightings:
Evaluation Criteria Weighting (%)
Price 40%
Capability, Experience & Capacity 15%
Contract Experience & Capacity 10%
Methodology 15%
Quality and Health & Safety 10%
Environment & Sustainability 5%
Contribution to Local Economy 5%
Table 1 – Tender Evaluation Criteria
The tender prices received were:
Respondent Lump Sum Price ($ excl. GST)
Kellybourke Pty Ltd (Conforming Tender) 2,112,236
Kellybourke Pty Ltd (Non-conforming Tender) 1,763,022
The difference in tender pricing related to the issue of professional indemnity (PI) insurance, a
requirement for the project. This provides cover to the insured party for the financial consequences
of neglect, error or omission when providing design-related professional services. The core business
for the tenderer was contracting-related services only, and as such PI Insurance did not factor into
the non-conforming pricing submission. The conforming submission included a provisional sum-only
for PI Insurance.
Following negotiations with the tenderer, they managed to secure PI Insurance for the project and
advised a final price as follows:
Respondent Final Lump Sum Price ($ excl. GST)
Kellybourke Pty Ltd (Conforming Tender) 1,822,037
Page 10 of 14
Section 11
SPECIAL MEETING AGENDA 30 NOVEMBER 2022
After an evaluation by an assessment team, Kellybourke Pty Ltd was endorsed as suitable for
awarding contract T000081. Kellybourke Pty Ltd have significant previous experience with
construction of similar projects (including similar lock and weir systems on the Sunshine Coast),
have offered a construction methodology that demonstrates rigour and is practical. They have a
strong track record and are highly capable, and have the necessary resources to meet Council’s
program to complete these works in 2023.
3. Previous Council Consideration
Nil.
4. Finance
The tendered price is significantly greater than the approved 2022/2023 project budget of $1,218,457
excl. GST. The original budget was set based on preliminary advice given in the 2020 Condition
Assessment Report, which included estimates for costs to renew the lock and weir elements. A
quantity surveying (QS) report was commissioned in April 2022 to get a more detailed estimate of
the costs, also taking into account recent construction market volatility with respect to material and
resource costs. The report advised an estimate of $1,747,103, excluding GST and risk and
contingency allocation.
The assessment team has compared the tendered pricing against the original bill of quantities and
more recent QS estimate, and considers the price reasonable, given the design, the methodology of
construction needed and current market considerations for public works pricing. In addition, there
are costs remaining for approvals, project management, superintendency and Qleave that contribute
to an overall budget shortfall of $847,261 excl. GST to complete the project (refer breakdown in
Table 2).
The current total cost estimate for the project is as follows:
Item Cost (excl. GST) Comments
Construction cost $1,822,037 Tender price (Kellybourke Pty Ltd)
Contingency (10%) $182,204 10% of tendered price
Project Management + $45,500 Estimate of internal cost, inclusive of
Superintendency (2.5%) approval fees to complete
Other committed costs $5,500 Expenditure July to October 2022
(22/23 FY)
Qleave (0.575%) $10,477
TOTAL BUDGET: $2,065,718
Table 2 – Project Cost Estimate to completion
A budget increase of $847,261 was endorsed at the October 2022 Capital Works Executive meeting,
subject to further consultation with the Noosa Waters Residents Association. The revised budget will
be captured in the 2022/23 financial year Capital Works Budget at BR2. It is noted that the final
budget will ultimately be fully recovered via the Noosa Waters Levy over time (refer further discussion
below)
Page 11 of 14
Section 12
SPECIAL MEETING AGENDA 30 NOVEMBER 2022
Risks & Opportunities
Financial Risk Mitigation
Market fluctuation may lead to greater future capital • Broad construction industry movement is
costs. Other infrastructure projects seeing unclear although remains volatile. Considered
significant market cost increases. unlikely that a rapid reduction over near future
(22/23 FY) will be experienced. Contract signing
prior to expiration of the tender validity period
will fix current market rate.
• A 10% contingency has been allowed.
• The total cost is covered by the levy to the
NWRA and if an increase in cost is experienced,
it will be captured in future levy instalments.
Value for money • Pricing has been assessed as in-line with
current market rates.
90-day tender validity period expired on 25 October • Contract documents are to be prepared and
2022. Risk of rate rise as result of re-negotiation transmitted to the Contractor for execution as
and potential need for additional market factor soon as tender award is approved.
contingency. • The tenderer has yet to withdraw the offer, or
advise any other change in writing, and as such
the tender remains valid and current until such
time.
Final contract value exceeds budget. • Budget variation is based on current market
pricing. Contingency has been included in the
budget variation for unforeseen project costs.
• BR2 adjustment to budget will be prepared.
• Any price increase will be captured in the
allocation of levy costs to the residents.
Constructability Risk
Physically constrained work areas restrict available • Methodology considered in detail by evaluation
construction plant, equipment and methodologies panel.
and will impact traffic (vehicles and boating vessels) • Constrained works area has been taken into
and pedestrian movements through area. account by the contractor and has been planned
for.
• Works are targeted to occur during winter
months where possible in an attempt to
minimise potentially adverse seasonal weather
impacts.
The constrained site and proximity to adjoining • Constrained works area has been taken into
residents adds risks to the contractor. account by the contractor and has been planned
for.
• Progress works whilst capable construction
services are available.
• Contractor has experience undertaking works to
similarly constructed infrastructure.
Legal Risk
Potential claims from property owners alleging • Construction methodology will attempt to
noise, odour and access impacts from works. mitigate majority of access issues for residents
and businesses, with short-term closures of lock
system only.
Page 12 of 14
Section 13
SPECIAL MEETING AGENDA 30 NOVEMBER 2022
• There will be times when the lock is not
traversable to residents and this will be factored
into all mitigation strategies.
Modifications to the lock and weir system may • The works are renewal only, with no upgrades
change operational requirements for residents or planned - all scope of works are “like-for-like”
create issues for future maintenance. only.
Environmental Risk
The local marine environment is damaged by the • Construction methodology outlines a process of
works. risk mitigation and water quality monitoring to
avoid negative impacts on the surrounding
waters.
• Fish relocation, managed by a suitably qualified
expert while the lock is being drained, has been
included in the scope of works and budget.
Project requires extensive environmental permits • Council staff commissioned a report outlining
for works to proceed. the regulatory and other approvals needed for
works to proceed.
• As works are to be undertaken in an artificial
waterway there are few approvals needed for
construction to proceed. Regardless, the scope
of works still includes a number of risk mitigation
strategies in order to minimise impacts on the
local environment.
Consultation
External Consultation - Community & Stakeholder
The Noosa Waters Residents Association (NWRA) were consulted on non-confidential aspects of
the tender at their Annual General Meeting on 13 November 2022. Elements discussed included the
price increase and schedule for construction. A follow-up consultation with the President of the
Noosa Water Residents Association will be undertaken by the Director of Infrastructure Services
shortly.
Internal Consultation
Chief Executive Officer; Corporate Services (Procurement, Finance); Infrastructure Services (IPDD,
Assets); Environmental & Sustainable Development (Environmental Services) Teams
Departments/Sections Consulted:
X Chief Executive Officer Community Services X Corporate Services
X Executive Support Director X Director
Community Development X Financial Services
Community Facilities Fleet
Libraries & Galleries ICT
Local Laws X Procurement
Waste & Environmental Health Property
X Revenue Services
Executive Services X Environment & Sustainable Development X Infrastructure Services
Director Director X Director
Community Engagement Building & Plumbing Services X Asset Management
Customer Service Development Assessment Buildings and Facilities
Governance Economic Development Civil Operations
People and Culture X Environmental Services Disaster Management
Strategic Land Use Planning X Infrastructure Planning,
Design and Delivery
Page 13 of 14
Section 14
SPECIAL MEETING AGENDA 30 NOVEMBER 2022
3. MEETING CLOSURE
Page 14 of 14
SPECIAL MEETING AGENDA 30 NOVEMBER 2022
3. MEETING CLOSURE
Page 14 of 14