2018-03-06 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                      6 MARCH 2018


Following tendering, the budget to complete the detailed design and undertake the construction
elements of the refurbishment works at the Noosaville Library is now confirmed as follows:

                                   Item                                                           Cost
 Project Costs to Date (incl. development of concept designs)                                 $48,884
 Tendered Contract Value (design and construct)                                            $1,634,586
 Project Management                                                                           $45,000
 Engineering consultants (ICT, Electrical, Mechanical)                                          $incl.*
 QLeave (on $1.63M)                                                                            $7,764
 Contingency (5% of construction)                                                             $81,729
 Total                                                                                     $1,817,963
* included in contractor’s price as part of the D+C scope.
The total project cost is now estimated at $2.54 million. Council’s funding component, after
allowing for grant funding, is now estimated at $1.73 million. The breakdown is as follows:
                   Item                      Project Total – Preliminary              Project Total –
                                               estimate prior to tender             Updated estimate
                                                                                         after tender
                                                               Sept 2017                    Feb 2018
 Detailed Design & Construction                               $1,343,257                  $1,634,586
 Project Management                                         Incl. in above                   $45,000
 Contingency                                                Incl. in above                   $81,729
 Temporary Library Relocation                               Incl. in above                  $100,000
 Concept Design development                                        $60,000                   $48,884
 Q Leave & other statutory fees                                    $14,400                     $7,764
 RFID Technology                                                 $391,436                   $391,436
 Fitments, Loose Furniture & Fixtures                            $226,545                   $226,545
                                    Total                     $2,035,638                  $2,535,944

Risks & Opportunities
Finance risks include:
    Client request for scope changes. This will be mitigated through Project Control Group
      management and limitation of client-requested scope variations.
    Latent conditions. Most often characterised as a geotechnical risk, previous investigations
      have mitigated much of this risk. As the majority of refurbishment is to occur on an existing
      structure that has been carefully assessed through access to good historical information (for
      example, the original design drawings), latent conditions are considered a minor risk for this
      project only.
    Variation risks. This has been partly mitigated through the lump sum construction
      procurement method with further mitigation through post-tender clarifications, tying arete
      Australia firmly into the scope of works.
    Contingency amount being insufficient. This risk may be mitigated through the adoption of
      saving options negotiated with arete Australia. The risk profile for the nature of the
      construction for this project has also informed an appropriate allocation of contingency level.
   Increase in temporary library accommodation costs due to extension of construction
     timeframe. The programme that has been nominated for both construction and for the
     temporary library service includes a level of allocation for delay (or ‘schedule float’) to account
     for reasonable extensions of time for this type of project. The programme will be carefully
     monitored to ensure temporary library costs are kept within budget and are not compromised.
Time risks include:
    Wet-weather delays. Construction during the typically dry season aims to mitigate this. Some
      wet-weather day allocations have been built into the programme. The majority of construction


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