2022-11-30 Special Meeting Agenda

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.




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