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Southern Regional Water Pipeline Project
Client:
Location:
The original 90km pipe line runs from Mt Crosby to Helensvale, servicing Ipswich, Logan, Brisbane and Beaudesert in South East Queensland. Then the scope later upgraded to run to Molendinar Water Treatment Plant at Gold Coast and is now approx. 100km.
Project Timings:
ORIGINAL
- Proposals closed 25 October 2005.
- Alliance Partner appointed 22 December 2005.
- Phase 1 [Concept Design and target Outturn Cost agreed] by 28 April 2006.
- Phase 2 [Pipeline commissioned] by the end of December 2007.
Note: All approvals were not in place by the Phase 1 milestone date,despite all necessary environmental assessment and supporting studies being completed.
UPGRADED: Sized to take Desalination Water to Mt Crosby + two way operation.
- Phase 2 (Pipeline commissioned) by the end of November 2008.
Timings and Value of Consultancy:
July 2005 to April 2006, approx. $300,000
Description of Project:
ORIGINAL
The purpose of the Project is to provide a bulk water supply network in the southern region consisting of, 1085mm to 750mm pipeline, 4 major pumping stations, 2 balance tanks pus 15+ offtakes - from Camerons Hill (west of Brisbane) to Helensvale (Gold Coast). The Project will service the growth in residential and industrial demands of Ipswich City, Logan City and Beaudesert Shire councils and also link the bulk water source of Wivenhoe Dam with the Gold Coast.
The Project will therefore be required to initially consider two scenarios;
- Option 1 - (full capacity) in which the pipeline traverses from Mt Crosby (Camerons Hill) to the Gold Coast with or without connection to Kuraby, and
- Option 2 - (part capacity) in which supply only extends from Camerons Hill to the Mt Lindsay Highway.
The Project was an essential component of the regional and infrastructure planning for South East Queensland. It creates an opportunity to develop a truly regional bulk water supply system in south-east Queensland, which can be owned and operated accordingly. Such an arrangement has the potential to provide greater flexibility, increased efficiency and improved reliability of water supply to the region.
UPGRADED:
Sized to take Desalination Water back to Mt. Crosby as well as correction of differing didinfection regimes and planned and responsive two way operations.
Success Factors specified by the client:
- The project team responded to changes in the project quickly and effectively and still delivers the project to the agreed timings.
- Positive public image of the project.
- All Government Agencies and Water Businesses including Council’s, see this project as a successful Regional Initiative and a model for delivery of similar projects.
Procurement strategy:
SRWP had to proceed to provide infrastructure desperately needed by Ipswich and Logan. It also needed to supply Gold Coast City Council with clarity in scope and price at the end of the next summer wet season, namely early May 2006. As the decision was taken to proceed in July 2005 and no approvals, land acquisition or geotechnical investigations had commenced, only an alliance delivery form was possible.
A Design Construct and Commission style alliance contract was developed in collaboration with various shareholder councils and SEQ water. The intensity of the constructions phase (up to 20 concurrent pipeline construction fronts) Industry briefing sessions were held well in advance of the public advertisements to allow time for potential consortia to form.
Challenges to procurement strategy:
Needed a packaging and procurement strategy to attract the large integrated designers and pipeline constructors in an overheated Australian market.
The client was a new entity with no track record so the market was wary.
SPAN has delivered the following:
- Facilitate the definition of the scope of the project
- Early information to the market to allow time for consortia to form
- Prepare Request for Proposal and Project Alliance Agreement
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Manage proposal evaluation, including
- Proposal Evaluation Management Plan
- Proposal Evaluation Report
- Recommendation of preferred proponent for the SRWP Alliance using the agreed assessment process.
- A Project Alliance Agreement signed by the Contractor and SRWP Pty. Ltd.
- Proactively manage the ‘Concept Design’ and Target Outturn Cost [TOC] Phase
- Develop a relationship framework between the Contractor and SRWP Pty. Ltd.
- Use structured processes for managing;
- Project delivery risk
- Project stakeholder identification
- Commercial Alignment
- Agreed ‘Concept Designs’ and TOCs for the Southern Regional Water Pipeline
- Agreed scope for the Pipeline Operations and Maintenance Contract
SPAN Solutions and Challenges:
This project was delivered in an exceedingly tight timeframe, in order to align the TOC development of this project with the TOC for the proposed desalination plant on the Gold Coast. The stakeholders for the project were 5 Regional Council together with SEQWater, and this presented particular challenges in aligning the requirements of each.
SPAN was able to deliver the project outcomes through use of its well developed, tested and refined methodology for establishing and implementing Alliance Contracts. Our specialists, with decades of hands on experience and an ability to innovate, were able to adapt and create new approaches and solutions tailored to meet to clients tight time frames, and complex stakeholder arrangements.
SPAN consultants involved:
Project Director: Brad Cowan
Transaction Manager: Davin Shellshear
Lead Commercial Adviser: John Davis
Lead Legal Adviser: Fiona Yeang
Facilitator/Relationship Coach: Herman Putter
Facilitator/Leadership team Coach: Davin Shellshear
Client said...
SPAN was asked to be involved through each phase of the project on the basis of its performance in developing the procurement strategy with such diverse stakeholders and also its commitment to relationship contracting.
Client said: "Without this alliance we would not have been able to respond effectively to the significant changes in scope when the State government asked to link the pipeline to the Gold Coast Desalination Plant and transport in the region of 125 MLD to Mt. Crosby".