2022-07-12 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                           12 JULY 2022


The funding sources for the project are detailed in the table below.

Design and Construct of Peregian Beach Digital Hub Building Expansion funding


                                                                                          Amount (excl.
Funding Source                                  Project Funded                            GST)

Rufous St Stage 3 Funding (BBRF & Council)      Digital Hub expansion portion                      $660,144

Disaster Recovery Funding Arrangements
(RDFA) - 2019 Qld Bushfires Local Economic
Recovery Program (LER)                          Development of Firetech Living Lab               $1,962,980

Black Summer Bushfire Recovery Grant            Equipment for Firetech Lab                         $256,177

                                                Digital Hub Building portion, Solar PV
Council ZEN contribution                        and Battery                                        $112,194

Total project funding                                                                            $2,991,495

Risks & Opportunities
Finance Risks               Mitigation
Unfunded scope              This is to be mitigated through the project working group and the Capital Works
increases.                  Project Control Group and Capital Works Executive meetings.

Material price increases    This risk will be mitigated by the nominated contractor procuring subcontracts
                            as soon as possible. Given the current period of material supply volatility
                            Council is at risk of price increases beyond what the contractor could
                            reasonably account for. This will be managed through a thorough
                            Superintendent assessment of price changes.
Contingency amount          The project team will endeavour to achieve project savings in the design
being insufficient.         development to offset any unforeseen additional costs with further oversight
                            from the Capital Works Project Control Group and Capital Works Executive
                            meetings.
Contractor becomes          Council has carried out a financial viability check on the preferred contractor
insolvent                   which proved acceptable and Council has included a Project Trust system to
                            add protection to subcontractors.

Program Risks               Mitigation
Delays due to wet           The contractor allowed for wet weather delay days in its program based on
weather.                    past weather data from the 2021 calendar year. Extensions of time over and
                            above this are assessed by the Superintendent. The project is commencing in
                            a traditionally drier period and the risk is considered low-medium.
Resource risk.              The contractor has nominated a capable and experienced project team to
                            undertake construction. Council’s resources to the project will require
                            monitoring by the Project Control Group and Capital Works Executive due to
                            the high volume of work in the capital works program.
Construction takes longer   The contractor is well resourced and has the available resources to deliver this
than allowed for.           project successfully. The risk is mitigated through the contract.
                            Grant funding bodies will be consulted with to manage any variations to
                            agreements.
Lead time of materials      Many associated risks are mitigated by ordering the materials as soon as
pushing the program out.    possible after the tender award. The contractor is aware and will manage this
                            risk and work closely together with Council's project team to minimise residual
                            timing risk.

Safety Risks                Mitigation

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