Small logo  
   
     

Coffs Harbour Infrastructure Program

Client:

Coffs Harbour City Council

Location:

Coffs Harbour

Project Date:

March 05 – Dec 05

Approximate Value of Consultancy:   

$200,000

Description of Consultancy:  

Coffs Harbour City Council’s objective is to ensure that the major infrastructure need by the city in the next three years, namely;

  1.   Coffs Harbour Water Treatment Plant project
  2.   Coffs Harbour Water Reclamation Plant project
  3.   Hogbin Drive Bridge
  4.   Multi purpose center building

provide the benefits Coffs Harbour requires and are completed on time and at the best price available from the market.

The objective of this consultancy is to engage the best, most suitable contractor team available and ensure an integrated high performance team is built and maintained through the life of the project.

Procurement Strategy

All the projects were parceled up into a works program making the package attractive to major designers and constructors who would need to mobilize a substantial management team in the city. Design Construct and Commission style alliance contract was developed in collaboration with various parts of Coffs Harbour City Council who would be affected by the strategy.

Challenges to procurement Strategy

Needed a packaging and procurement strategy to attract larger players in an overheated market. The diversity of skills required would need more time than usual to assemble a full team.

Alliance transaction management

SPAN engaged individual Technical Specialists for CHCC to ensure they had sufficient expertise to assess the proponents'  technical capability. SPAN Transaction team included specialists who had enough industry knowledge to effectively scope the work and assess the tender, legal expertise to draft the contracts, commercial expertise to conclude the negotiations on commercial terms, relationship expertise to facilitate the workshops.

The SPAN deliverables were:

  1.   A robust project delivery strategy and process developed and agreed.
  2.   Tender package prepared and put to the market
  3.   Suitable contractors appointed
  4.   Framework for High performance Alliance teams developed.

Challenges to Alliance transaction management

To ensure work was packaged in such a way as to interest the wider market. To minimise the hours required of CHCC staff to support the project and at the same time maximize the opportunity for CHCC staff to provide their comprehensive system knowledge to the project.

Challenges to alliance relationship management

The differing skills meant separate Management Teams were needed for each project. However the value to be extracted from the program was in the coordination of scarce highly skilled resources, hence a matrix series of relationships were necessary. An Alliance Program Management Team organized in the following matrix.

  1.   Four Project Management Teams and
  2.   Five functional managers (Approvals,  Design, Construction, Commissioning &    Stakeholder)

Facilitator needed to deliver technical facilitation in risk management, value management, stakeholder analysis and breakthrough thinking that was relevant to the different teams and their needs.

SPAN consultants involved

Program / Project Manager:                  Brad Cowan

Transaction Manager:                            Greg Cashin

Commercial Adviser:                              Brad Cowan / Greg Cashin

Legal Advisor:                                          Fiona Yeang

Relationship Management:                  Eric Fenn

Facilitator/Leadership team Coach:   Brad Cowan

Project Performance

The alliance contractor was engaged on time and the SPAN consultancies meet the client's budget.

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 and also its commitment to relationship contracting. As part of the procurement strategy SPAN has recommended a program alliance for the best outcome.

Client said: "Without this alliance program we would not have been able to respond effectively to the significant changes in scope or constraints (approvals and funding) on some of the projects"