2019-08-12 General Committee Agenda

GENERAL COMMITTEE MEETING AGENDA                                                   12 AUGUST 2019


This project is similar in that there remains a level of uncertainty over the capability and execution
strategy of the market to deliver the infrastructure. An EOI process, proven to work with Park
Road, is similarly considered the best option for engaging with the market for this project.

Previous Council Consideration
Nil.

Finance
The 2019/20 budget includes $1.8 million for the Orealla Bridge project, with 50% funded from
grants and the remainder from cash reserves. The EOI process will clarify the additional cost to
undertake the works; which will also be 50/50 funded from both grants and cash reserves. Given
the timing of the EOI and the grant conditions, it is anticipated that any additional cost will be
incurred in the 2020/21 year, and not impact the current year 2019/20 capital works budget.

Risks & Opportunities
Key risks are broadly discussed above, however a further breakdown of specific risks is given as
follows:

Finance risks that have been identified include:
 Capital Works Budget: the final costs for delivering the bridge are estimated to date, however
   an EOI process is considered the best method for accurately capturing the delivery costs.
 Contractor Premium: D&C type contracts can be expensive, as contractors add a number of
   overheads for managing the risks associated with design and delivery. An EOI process will
   allow Council to negotiate with preferred tenderers and seek feedback from the market on the
   viability and cost-effectiveness of entering into this contracting model.

Time risks that have been identified include:
 Schedule for delivery. Section 3 above notes the time-constraints as a result of the grant-
   funding. Prioritisation of critical items that directly impact on the developed project schedule
   will be continually implemented and updated as required. This includes procurement
   activities, of which an EOI process is considered the lowest risk method for achieving the
   project delivery in time.

Stakeholder risks that have identified include:
 Community impacts during project execution. The project will receive a high degree of public
   interest and scrutiny and likely prompt a discussion on overall outcomes and benefits. In
   particular project costs associated with providing such infrastructure. The EOI process is
   intended to provide Council with a high level of control over the final delivery methodologies
   chosen, and ensures probity is embedded throughout.

Consultation
External Consultation
     Telstra
     Unitywater
     Energex
     Department of Infrastructure, Transport, Cities, and Regional Development

Internal Consultation
Report presented to the Capital Works Executive (CWE)



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