2019-11-12 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                    12 NOVEMBER 2019


The below table identifies the estimated project costs and budget actions.

 Item                                                                         Cost (excl. GST)

 Costs to date (October 2019)                                                         $1,455,736
 Tendered Contract Value (ex. GST)                                                    $2,809,954
 Consultant and staff costs                                                            $105,000
 SUB TOTAL                                                                            $4,370,690
 CONTINGENCY                                                                           $703,022
 TOTAL BUDGET                                                                         $5,073,712


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.
 Scope changes once construction commences             Council acceptance of scope as awarded with
 and project becomes publically visible.               intention of not increasing scope.
 Geotechnical conditions give rise for contractor      Previous geotechnical investigations have been
 claiming variation costs.                             considered and allowance for adverse latent
                                                       conditions is included in the contingency.

 Contractor claims for variations based on costs for   As above, this has been mitigated through the
 environmental     impact      mitigation  exceeds     lump sum procurement method with further
 allowances.                                           mitigation through post tender clarifications tying
                                                       the contractor firmly into the agreed scope of
                                                       works
 Clashes with underground services give rise for       Majority of underground services have been
 contractor claiming variation costs.                  relocated and those known have been mitigated
                                                       through design considerations.
 Contingency amount being insufficient                 This risk may be mitigated through the adoption of
                                                       further value engineering to occur during the
                                                       construction phase process.


 PROGRAM RISKS                                         MITIGATION
 There is the potential that the project is delayed    The contractor is required to include “wet weather”
 due to wet weather                                    allowances into their schedule.
 Construction takes longer due to site being more      In the event of delays the contractor is able to
 constrained than allowed.                             mobilise additional equipment at no additional cost
                                                       to bring program on track.
 Resource risk                                         PentaCon have nominated a capable team and
                                                       combining two work fronts (Portion 1 & 2) at one
                                                       time reduces the resourcing risks to this project.
                                                       The appointment of an internal superintendent
                                                       mitigates the resourcing risk for Council.




                                                                                          Page 38 of 129