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Role of the Builder in PPP’s Vince D’Amico (Thiess)


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$9 billion of Projects between 2000-2006, and expected to grow to $100 billion in the next 10yrs. Current PPP expenditure lies in vicinity of 10-15% of total government procurement. The Projects are classified as economic or social infrastructure. One feature of the evolution of the Australian PPP market has been the increasing number of social infrastructure compared with economic.

All figures taken from a report by Infrastructure Partnerships Australia - Performance of PPPs and Traditional Procurement in Australia


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“The PPP advantage increase (in absolute terms) with the size and complexity of projects.”- Infrastructure Partnerships Australia Private Sector can add greater innovation and value for money than Public Sector. PPP’s provide new sources of capital for public infrastructure projects. Secure investments with strong credit rating over a long investment period.


Future PPP investment will be in economic infrastructure – such as water, energy, communications and transport. }  PPP’s allow the Private sector access to new markets. }  Private sector adds value through innovative design that lowers construction costs }  Private sector offers reduced life-cycle maintenance costs and lower costs of associated risks in PPP’s. } 


Timelines are often provided in the EOI document }  Construction planning is required to demonstrate understanding of other similar type buildings i.e. Hospitals, Prisons }  Typically issues raised: } 

◦  Any Staging requirements ◦  Technical commissioning ◦  Hand over requirements


Identification of key Project risks }  Rating of the risks into categories i.e. technical, commercial, HR, OHS&E }  Apply a value where possible }  Attach a probability for the likely hood of a risk event }  Apply risk mitigation strategy }  Try and identify site specific issues } 


Builders often engage sub contractors at an early stage to enable buildability and design is tested early in the design process }  Partnering of key trades are often methods used in the past }  Key trades are identified and then submissions are called from the market }  Key trade partners are then asked to contribute to the EOI } 


Prefabrication must serve the design. }  Engage key contractors and suppliers early. }  Use 3-D design programs }  Build mock ups and test with user groups. }  Modules must be transportable on conventional flatbed trucks or equivalent, or cost prohibitive. } 


Site constraints should be identified early }  Issues such as: } 

◦  Access to the site ◦  Traffic & pedestrian management ◦  Restrictions imposed by other users of the site ◦  Rail occupations –  –  –  – 

Detailed process imposed by the rail authority Work method statements Inductions Process to work in a live corridor i.e. electrification


BIM is a tool used in the construction industry }  The 3-D aspect allows for early planning and coordination of the various design disciplines }  BIM allows clash detection to be identified early }  BIM allows an integrated package at hand over for the Building Manager to have access to data on products used and maintenance records } 


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AquaSure brings together three companies, all leaders in their fields; –  Degremont - a Suez Environment company and world leader in reverseosmosis desalination technology –  Thiess – one of Australia’s largest and most trusted construction and services companies –  Macquarie Capital – the world’s strongest and most experienced infrastructure advisor

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Largest seawater desalination plant in Australia due for completion by the end of 2011 It will supply up to 150 billion litres of water a year to Victoria The projects production represents one third of Melbourne’s annual water needs independent of rainfall The major benefit of desalination is it delivers high quality drinking water without rainfall


Capital cost $3.46 billion }  $1 billion saving had the Project been delivered by the Victorian Government }  30 year concession period. }  The desalination plant will be handed back to government in full operating condition at no cost in 2039 } 


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Project benefits; ◦  Two way pipeline connecting South Gippsland and Western Port to Melbourne’s water supply ◦  New communications cable to facilitate local broadband ◦  Up to 1,700 direct jobs created during construction ◦  $1 billion boost to Gross State Product ◦  New costal park with community recreation trails ◦  $12 million spent on local roads


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Challenges

◦  Extreme weather conditions experienced ◦  Remote location ◦  Industrial relations


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“However beautiful the strategy, you should occasionally look at the results.” Sir Winston Churchill

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Thank you

Week_03. Vince D'Amico  

Week 03 2012 Role of the Builder in PPP's BUIL 1154 Advanced Construction Management