2022-11-30 Special Meeting Agenda

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)




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