2022-11-30 Special Meeting Agenda

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