CAPITAL PROGRAM 2024/25 DELIVERY STATUS · Report

SERVICES & ORGANISATION COMMITTEE MEETING                                      12 NOVEMBER 2024


 Figure 4 detail          Percentage    Value of
                           of CWP       CWP
 Non-Grant     funded        58%        $31.1m
 Projects
 Grant        funding         26%       $14.2m
 revenue
 Councils’                    16%       $8.4m
 contribution       to
 projects with grant
 funding




Figure 4 – Projects by funding source

Risk & Opportunities
Opportunities, Risks and Initiatives
The construction industry continues to experience shortages in contractor and material availability
which also impacts the inflation of tender pricing. Given the relatively low value projects undertaken
by Council, the larger and more competent contractors are more likely to commit their resources to
higher value projects on offer elsewhere. These factors pose a risk to the delivery of the 2024/25
Capital Works Program.
The approved capital budget of $53.8 million, which includes a substantial carryover of $22.4 million
from 2023/24, is an over-optimistic target given the size of the internal pool of project managers.
This challenge is further exacerbated by the current major restructure of IPDD, high staff turnover
and the loss of skills to competing markets, increasing pressure on staff. Strategies being
implemented to mitigate these impacts include:
     • Sourcing external project management consultancy services.
     •   Exploiting recruitment options to engage resources to strengthen internal teams.
     •   Packaging works into sizeable contracts to attract established contractors.
     •   Utilising streamlined and expeditious contract arrangements.
Council has taken the opportunity to look ahead and plan for increased project delivery in the
immediate future. The strategies employed in this regard include:
    • Improving project delivery tools, systems and processes.
     •   Enhancing monitoring and reporting on the Capital Works Program.
     •   Improving forecasting and early identification of risks.