David Treppo 3234665

James Radford 3238121

Lisa Barry 3229707

Kavindha Chandrawanka 3238879

Cameron Bond 3229302

Tom Napiorkowski 3229614

Brendan Klinko 3236547

Brett Carmichael 3237744

EXPRESSION OF INTEREST FLINDERS STREET REDEVELOPMENT

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Contents

Introduction .......................................................................................................................................... 3

1.0 Legal Advisors ................................................................................................................................. 4

1.1 Introduction ................................................................................................................................ 4

1.2 Contract Administration & Value for Money .............................................................................. 4

1.3. Stakeholder Interaction ............................................................................................................. 5

1.4. Risk Management ...................................................................................................................... 6

1.5. Capability, Experience & Capacity .............................................................................................. 7

2.0 Project Sponsor ............................................................................................................................... 8

2.1 Understanding the Key Issues ..................................................................................................... 8

2.2 Risk Management ....................................................................................................................... 9

2.3 Delivery of Project Objectives and Scope .................................................................................... 9

2.4 Consortium Structure and Management .................................................................................... 9

2.5 Support of the Green Star approach ......................................................................................... 10

2.6 Value for Money ....................................................................................................................... 10

2.7 Public Service Comparator ........................................................................................................ 11

2.8 Stakeholder Interaction ............................................................................................................ 11

2.9 Experience, Capability and Capacity ......................................................................................... 12

3.0 Design ........................................................................................................................................... 13

3.1 Key Issues & Design Considerations .......................................................................................... 13

3.2 Value for Money ....................................................................................................................... 14

3.3 Experience, Capability and Capacity ......................................................................................... 14

4.0 Construction ................................................................................................................................. 16

4.1 Understanding of Key Issues ..................................................................................................... 16

4.2 Challenges and Risks during Construction................................................................................. 18

4.3 Delivery of Project Programme ................................................................................................. 19

4.4 Consortium Structure and Management within John Holland .................................................. 20

4.5 Management between State and Designers ............................................................................. 20

4.6 Value for Money ....................................................................................................................... 21

4.7 Stakeholder Interaction ............................................................................................................ 22

4.8 Experience, Capability and Capacity ......................................................................................... 22

5.0 Facilities Management .................................................................................................................. 24

5.1 Understanding of Key Issues ..................................................................................................... 24

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5.2 Delivery of Project Objectives and Scope .................................................................................. 25

5.3 Consortium Structure and Management .................................................................................. 26

5.4 Providing Value for Money (through Services and Assets) ........................................................ 26

5.5 Experience, Capability and Capacity ......................................................................................... 28

List of Figures

Figure 1: Melbourne Rail Connect Consortium Structure ..................................................................... 3

Figure 2: Maddocks’ contractual responsibilities .................................................................................. 4

Figure 3: Finance Structure throughout Project Life ........................................................................... 10

Figure 4: Consortium Structure during Design Phase ......................................................................... 13

Figure 5: Nunawading Train Station .................................................................................................... 15

Figure 6: Southern Cross Station ......................................................................................................... 15

List of Tables

Table 1: Risk Allocation and Mitigation Table ....................................................................................... 6

Table 2: Previous Australian PPP Projects ........................................................................................... 12

Table 3: Challenges and Risks during Construction ............................................................................. 18

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Introduction Since the inception of the Flinders Street Station Redevelopment Expression of Interest, all parties

forming the Consortium have been involved in regular and detailed discussions and presentations

with one another in order to guarantee the synchronicity between all members.

Having utilised these interactive and informative gatherings, as well as previous experience together,

Melbourne Rail Connect can strongly declare that we have successfully combined our individual

talents, direction and professionalism into a single entity that can effectively deliver what will

become one of the most iconic and positively spoken about PPP projects in Victorian history.

Reasons for our confidence include the facts that John Holland and Savills have successfully provided

construction and facilities management services respectively, to the current metropolitan train

network operator Metro Trains. Project sponsor Bilfinger Berger and legal representative Maddocks

have also worked effectively together on the Victorian Correctional Facilities Partnership; proving

our strong position for delivering an unbeaten outcome

A broad diagram of the Melbourne Rail Connect consortium structure, how we interact and how this

project will be delivered can be seen below in Figure 1.

Figure 1: Melbourne Rail Connect Consortium Structure

Individual roles of each member within the consortium are discussed further in this EOI

documentation in their respective sections both in terms of their managerial and contractual roles,

as well as in terms of stakeholder interaction.

Legal

(Maddocks)

SPV (Melbourne Rail

Connect)

Construction (John Holland)

FM (Savills)

Sponsor

(Bilfinger

Berger)

Construction (John Holland)

Grimshaw Architects

CLIENT (State Government)

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1.0 Legal Advisors

1.1 Introduction Maddocks has been providing advice to Australian Government institutions around the country for

over 125 years. Whilst working as part of the Melbourne Rail Connect consortium, the State can rest

assured that we shall use these years of experience and relations to keep the project focus and the

best interest of both parties, in the strongest position possible from a contractual stand point.

We have international success working on PPP and PFI projects, acting as Government advisors prior

to EOI stage and also as a functioning party of various Special Purpose Vehicles (SPV’s).

1.2 Contract Administration & Value for Money Maddocks will oversee and control all contracts between the SPV and client (the State) and between

the SPV members themselves. The diagram in Figure 2 below highlights these interactions and

contractual obligations.

Figure 2: Maddocks’ contractual responsibilities

We are aware of the fact that the contracts which bind the consortia members and those between

the client and SPV are vital to a successful and optimal risk transfer matrix. Maddocks shall ensure

that the transference of risk is prepared so that those parties best capable of managing that risk are

contractually obligated to do so. Through our vast experience, we are fully aware that optimal risk

transfer provides a reduced cost to those accepting that risk, therefore we can guarantee a more

value for money outcome of the PPP project as a direct result of this approach.

Grimshaw Architects

PROJECT CONTRACT

SPV F.M. ARM

SAVILLS

SPV CONSTRUCTION ARM

JOHN HOLLAND

CLIENT

DEPT. OF TRANSPORT

SPV FINANCE ARM

BILFINGER BERGER

PROJECT CONTRACT

FM CONTRACT D & C CONTRACT

FINANCE DOCUMENTS

CONTRACT

LEGAL ARM

MADDOCKS

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Maddocks can also add that if any innovations or technologies which are destined to be

implemented into the design are able to be provided at a lower cost than initial stated, the Project

Contract shall allow a variation to enable the State to benefit from the potential savings; once again

delivering more value for money.

In addition to the above mentioned value for money benefits, as we are the key legal

representatives responsible for the Project Contract, we will provide an initial deed document which

is flexible and together with regularly reviews of the progress and focus of the redevelopment, the

Firm shall ensure the contract content remains relevant and is reflective of any scope or directional

changes (if necessary) made throughout all phases of the venture.

Furthermore, Maddocks will ensure through thorough and robust contractual documentation that

the State shall receive their asset at handover in an adequate condition, enabling a smooth

transition from our FM provider. In circumstances where it is believed the asset is below handover

standards, repairs and/or necessary undertakings to produce required standards shall come at no

additional cost to the State.

1.3. Stakeholder Interaction Communication channels have been developed through all facets of the SPV to ensure that all

parties are kept up to date and that unnecessary problems do not arise due to inadequate

communication. This has been achieved through a mandatory reporting structure which requires

that all perceived issues that arise throughout any phase of the project are to be reported to the

respective management and then logged. These issues will then be raised at a compulsory bi-weekly

meeting between representatives from all members of the consortia and chaired by a representative

from Maddocks.

We have used this method with great success in previous projects, as it effectively eliminates time

wasting when two or more parties try to address the same problem. We also find these meetings are

excellent at promoting harmony between consortia members, which makes for a more successful

project.

We want to guarantee the sustainability of our SPV. To stabilise this longevity, Maddocks has

organised and held Stakeholder Interaction Learning Forums (SILFs), two of which have been held

thus far in this EOI. SILFs comprise all staff active in the consortia, coming together outside of work

to meet and initiate relationships that will develop over the projects life cycle. We have had

tremendous success with these in the past and the success lies in the relaxed manner with which

they are conducted, which encourages the participants to connect on a level other than

professional.

The communication net will be extended to incorporate the State. We would also invite

representatives from State to participate in the third and final SILF before construction begins.

We understand that this is the most important project Victoria has undertaken in many years, and

that Victoria will maintain a vested interest in the redevelopment. For stakeholders to play an active

role in the PPP process, they must be given a forum of participation as well as the information

needed to participate effectively. To this end, Melbourne Rail Connect and the State shall contribute

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to the PPP. This broadening of stakeholder buy-in is conducive to innovative approaches, as the

inputs are greater and more varied, often resulting in the client receiving a final outcome that is

beyond their initial expectations.

We understand your needs as the client, and we understand that every major project is complex.

Our aim is to provide you with clarity at every stage of the project. We want to ensure to our client

that we understand their interests and concerns, and will do our best to accommodate and integrate

these within the project.

1.4. Risk Management Listed below, Table 1 is a table developed by Maddocks risk experts, outlining expected risks

throughout the project. It outlines mitigation strategy and ultimate responsibility.

Site Risk

This is where we will focus most of our risk mitigation strategy. Maddocks understands that Flinders Street station must be kept operational to maintain the integrity of the transport network. Strategies will be implemented in conjunction with Metro Trains to ensure that any site disruptions do not cause any adverse effect on the public transport network. This risk shall be shared; however further discussions need to be undertaken with government to determine the distribution of this risk, due to the complexity of the site.

Design Risk

Melbourne Rail Connect will implement BIM modelling along with Terrestrial Laser Scanning as part of our design process. We believe that these methods will give us sufficient information to foresee and minimise any substantial risks within design. Melbourne Rail Connect will be fully responsible in this regard.

Construction & Commissioning

Risk

OH & S will be of the highest priority whilst construction is taking place. This will take into account our construction personnel as well as the general public. Savills will be on hand throughout the construction phase testing the interface systems and ensuring everything is to their high standard, so as the transition is as smooth as possible. If risks arise, Melbourne Rail Connect shall assume these.

Market Risk Melbourne Rail Connect foresees no market risk, and assumes that no major changes to public transport legislation will take place in the near future which would negatively affect revenue. In any such case, Government are to assume responsibility.

Network And Interface Risk

Savills has performed extensive research into the networks that will be put into operations at Flinders Street Station. Melbourne Rail Connect will hold responsibility.

Industrial Relations

Risks of strikes or industrial action shall be assumed by Melbourne Rail Connect, unless it can be shown that this action arises from a wrongful act or omission of the State in connection with the project. Under such circumstances, the State shall take risk.

Change Of Law Any risks arising from change of law shall be taken by government.

Native Title Claims And Artefacts

Due to the history of the site, we do not foresee any issues on this front. If any delays arise due to this, the State is to assume responsibility.

Force Majeure In the event of Force Majeure, risk shall be shared equally.

Table 1: Risk Allocation and Mitigation Table

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1.5. Capability, Experience & Capacity Maddocks has been fortunate enough to work as legal advisors on numerous PPP projects around

the world, with our expert staff coming from a range of backgrounds and project experience that

ensures the highest level of commitment and diligence. In 2012 we were ranked within the top 20

law firms in the nation.

The firm has its origins in Melbourne and it is this affiliation with the city that allows an in depth and

personal appreciation and acknowledgement of the impact and historical value that Flinders Street

Station has to Victoria and to its tourism industry.

Maddocks has been involved in providing legal expertise concerning PPP’s since its evolvement as a

procurement method; having worked on successful bids for various consortia globally with regards

to the development of major retail precincts, rail upgrades and other major public infrastructure; all

facets relevant to the Flinders Street Station Redevelopment. Some such projects include:

Melbourne Metropolitan Public Transport PPP on behalf of Alstom Australia

Underground Rail Network PPP, Greece on behalf of European Investment Bank (€3.9 Billion)

Lane Cove Tunnel PPP, Sydney Australia ($1.5 Billion)

Retail and commercial developments under varying delivery methods across the nation (in

excess of $230 Million)

In addition, Maddocks has a proven successful history with Bilfinger Berger, the Finance arm of

Melbourne Rail Connect. Together we have worked on the Victorian Correctional Facilities

Partnership PPP Project ($300 Million); delivering correctional facilities for the Department of Justice

and Correctional Services Victoria.

To further enforce the prior success history between SPV members, John Holland (who are

responsible for Melbourne Rail Connects ability to design and construct) formed part of the

consortia who delivered the Lane Cove Tunnel PPP two months ahead of schedule for the NSW

Road & Traffic Authority (RTA).

Having worked closely with governments internationally and gaining a comprehensive

understanding of the complexities and sensitivity issues related to a project of which a public entity

is involved, will allow the Maddocks team assigned to the Flinders Street Station redevelopment (as

part of the SPV) to handle such matters with the utmost professionalism and discretion.

We shall structure our team so that we have only the most experienced and sound advisors

assessing and evaluating all legal aspects of the project; some of which have been consulted and

accordingly made recommendations for the Partnerships Victoria Guidelines document itself.

Based on our industry knowledge and experience working within a PPP framework, our focus shall

be to aid in the timely delivery of a sustainable, viable and innovative project that is contractually

sound to both the State Government and Melbourne Rail Connect.

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2.0 Project Sponsor Bilfinger Berger Project Investments (BBPI) is a division of the multinational company, Bilfinger

Berger. BBPI delivers and operates transport and social infrastructure projects as a private partner to

the public sector. Operating in three continents, BBPI actively seeks to deliver first class service of

the highest standard of excellence.

With this experienced team, BBPI seeks to deliver a concise financial and risk management plan to

enable this consortium to deliver a project of great innovation, sustainability and cost certainty.

2.1 Understanding the Key Issues The overlying issue throughout this project rests on the ability of the sponsor, Bilfinger Berger,

delivering the project on time and on budget. A key understanding of the Public Private Partnership

(PPP) procurement method, PPP project structure and the PPP selection criterion is equally crucial to

ensure a cost certainty of delivery to the client. As every PPP is different it is important to cater for

variances encountered in the delivery process and mould around the various parties (particularly in

regards to risk management).

The financial capacity of Bilfinger Berger is first class delivering many PPP projects worldwide over

many years (see Section 2.9). Furthermore, the experience BBPI has with whole-of-life costing,

appropriate budgeting and factoring in growth are trademarks of a company placed in a strong to

take on a task of the magnitude and importance.

Risk allocation is the most attractive quality in the selection of PPP procurement method and is the

cornerstone of the success of a project being delivered effectively. Given this, each party with the

consortium has been delegated particular risks they are most capable in handling.

Some of the major risks taken on by Bilfinger Berger Project Investments include:

o Risk of failure of the entire project; if BBPI or any part of the consortium takes upon risks

beyond their capability and as a result causes the consortium to fail to deliver the project.

Included in this is the overall reputation of BBPI and its future capabilities of delivering

further projects. The overall competency of the company will be in question and the proud

history of this company may come into disrepute.

o Legal Risks; should BBPI be unable to fulfil their contractual obligations with the government

they may be found liable of a breach of their agreement. Further to this, due compensation

could be sought out by the government affecting not only BBPI but the other parties within

the consortium.

o Changes in market; changes in the financial market over the course of the project life may

alter projections predicted by BBPI. May cause an underestimation of total price of the

project and overall trust in BBPI to deliver a cost certainty.

Increasing our capability of delivering this project, Bilfinger Berger, has employed a number of

additional financiers to assist with other costs, particularly related to construction

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2.2 Risk Management In order to maintain a high level of risk management it is important to understand the basic concept

of a risk. BBPI defines a risk as ‘a factor which possesses the ability to cause a negative impact to a

project’. As all risks within a project have the ability to cause a damage of monetary value BBPI

believes it is of vital importance that they be managed.

Risk management, generally, seeks to provide steps to lessen the chance of these risks to occur. BBPI

takes great care in the correct identification, analysis, treatment and review of all potential risks to

ensure they do not place themselves, other parties within the consortium or indeed the client under

any danger of project failure.

BBPI takes this definition of risk management further to say that it is not just a process but a culture

engrained in our organisation over many years of experience.

BBPI makes use of various tools in the pursuit of concise risk management. Included in this process is

the development of risk register to enable careful monitoring of all risk throughout project life.

Additionally BBPI makes use of a risk allocation model in which we seek to analyse risks and delegate

them to whichever party is best equipped to deal with the particular risk.

2.3 Delivery of Project Objectives and Scope Bilfinger Berger Project Investments extensive knowledge of the PPP process places us in a strong

position to deliver a project of this importance.

This will be done through appropriate management of the consortium (see Section 2.4) and correct

implementation of risk management and allocation techniques that seek to promote the skills of

each individual party within. Through an experienced knowledge of PPP structures and limitations

we hope to deliver a project that will exude the full capabilities of the parties within the consortium.

We seek to deliver a facility which will provide a benchmark for train stations within Australia and

throughout the world.

2.4 Consortium Structure and Management As sponsor, Bilfinger Berger Project Investments holds a key role in binding the entire consortium

together over the entire project life. Furthermore it is important we encourage and implement steps

to create a strong working relationship with the other parties in our consortium. BBPI is a firm

believer that communication is a key step which goes a long way to the success of any project. The

consortium structure related to financing of different parties can be seen in Figure 3 below.

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Figure 3: Finance Structure throughout Project Life

2.5 Support of the Green Star approach

As a world investment leader we are committed to the principles set out from the Green Star rating

tools. In saying so, we have confidence in the sustainable design and innovation of Grimshaw

Architects who have been entrusted with the overall design. With their level of experience and in

particular their design of nearby Southern Cross station we are confident they will deliver an

environmentally sound design and have the full backing and financial support of Bilfinger Berger.

Similarly we have full confidence in the green construction practices adopted by John Holland and

are fully supportive of their involvement.

2.6 Value for Money At Bilfinger Berger, we pride ourselves in achieving the best we can for our clients. Our extensive

successful history in Public Private Partnerships has proven our ability to produce high quality

services to satisfy our client’s needs. Our focus is on reviewing strategies within projects to deliver

optimum efficiency and cost-effective solutions for every individual project we support.

We will assure our best service is provided by:

Obtaining commitment to the project from our stakeholders at an early stage, thus reducing

the cost and time of the procurement process.

Incorporating synergy between the design, construction, operation and maintenance

experts in our consortium, to reduce any miscommunication.

Effectively managing the consortium to design, construct, operate and maintain the project

in a way that ensures the best service and value for money is provided.

Encouraging innovation in the design by involving architects experienced in PPP’s and

sustainable designs.

Using previous experience from recently closed PPP projects to achieve the highest standard

of service.

Keeping up to date with any necessary guidelines, specifications and standards that recur.

Facilities Management

BILFINGER BERGER GOVERNMENT

DESIGN CONSTRUCTION HANDOVER

Capital Finance

ADDITIONAL FINANCIERS

Ongoing

Funding

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Identifying risks early within the procurement phase, and allocating them to the appropriate

parties able to bear and manage them.

Ensuring the delivery of the project accounts for the whole life costing of the project instead

of just the upfront costs. E.g. Maintenance will be driven by performance results instead of

the budget available.

Assessing milestones and managing the project effectively in order to deliver the project

within its time frame or with timely completions but ensuring enough flexibility to

accommodate any changes.

Proving incentives to encourage the consortium to provide the preeminent service.

Our company provides thorough due diligence to ensure value for money, thus our clients acquire a

greater risk elimination, quality services, cost and time certainty.

2.7 Public Service Comparator

The main ‘value for money’ test is the Public Service Comparator. The reason why we use the PSC is

because it represents the anticipated costs and revenues for the public sector. Using this tool will

allow the governments to compare the value for money predictions from using the Public Private

Partnership delivery model to other traditional procurement methods. This allows the government

to have an approximate measure of the range of outcomes that they may face if they were to utilize

each model, and consequently ensures the best method of procurement is used to attain value for

money for the project.

2.8 Stakeholder Interaction As a company, we hold our stakeholders in our highest priority, as they remain a crucial element

within the project.

The management of our stakeholders rely on the relationships created. Our objective is to create a

synergy between ourselves and our stakeholders to integrate the needs of each party and

consequently increase the chances of delivering a successful project.

This objective to establish and maintain exceptional relationships with all our stakeholders will be

reached by:

Communicating with local communities by having public forms, consultations etc. We have

organised groups and programs that engage the community’s to discuss their concerns.

Allowing access to important information business partners on a secure extranet site.

Having early and frequent meetings with our stakeholders ensure there is no

miscommunication and they fully comprehend the project’s needs throughout the design,

construction and operational phases.

Interconnecting the diverse ranges of perspectives and experiences the stakeholders have to

offer, thus allowing a preeminent project to be delivered.

Informing and communicating performance to the stakeholders of the projects process

regularly, primarily when milestones are reached, by reports, meetings, conference calls etc.

Committing to resolving any disputes and challenges that arise promptly and effectively.

Integrating stakeholder engagement initiatives.

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The stakeholders involved, but not limited to, are:

Minister of Transport

Minister for Development

Public Transport Victoria

Consortium

Government

Metro

Banks

Shareholders

2.9 Experience, Capability and Capacity Bilfinger Berger Project Investments is the PPP division of one of the world’s largest construction

services companies, Bilfinger Berger.

We are involved in all types of infrastructure developments. We are leading the way by using public

private partnerships as they are the way of delivering 21st infrastructure in communities where

public finances are limited.

Working on three continents, Bilfinger Berger group has created an expanding portfolio of successful

developments in transport, health, education, custodial and emergency services. With every project,

and every service we provide, we offer the highest standards of quality.

We believe that using Public private partnerships as our deliver model, we’re able to offer significant

advantages with fast implementation, a high level of economic efficiency and guaranteed costs for

construction and operation.

A few of our PPP developments are mentioned below in Table 2:

Country Place Project

Australia Northern Territory Darwin Correctional Precinct

Australia Victoria Prison in Ararat

Australia Victoria Peninsula Link Highway

Australia Victoria Royal Women’s Hospital Table 2: Previous Australian PPP Projects

The projects mentioned above are only a number of our extensive range of projects. Bilfinger Berger

is a part of the operation of roads, schools, hospitals and other public facilities in its continental

markets of Australia, Canada, the United Kingdom and Continental Europe.

The company is investing equity totalling more than $90 million in Australia. The company’s entire

privately-financed portfolio now consists of approximately 31 projects with a total volume of

approximately $10.4 billion and an equity commitment of $503 million.

Our mission is to help our clients and partners successfully realise their visions and projects.

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3.0 Design Melbourne Rail Connect partnered with Grimshaw Architects, who will lead the design of Flinders

Street Station. Grimshaw Architects are a London based company, which has offices in both

Melbourne and Sydney. Grimshaw was selected due to their past experience in railway station

design. Throughout developing the proposed design, all key parties gave input to achieve what is the

overall best outcome for the State Government and the users of Flinders Street Station. The

structure within the consortium in relation to the design phase can be seen below in Figure 4 below.

Figure 4: Consortium Structure during Design Phase

3.1 Key Issues & Design Considerations Challenges and provisions that need to be considered for any possible design of the Flinders Street

Station re-development that may be implemented are shown below, showing proposed key design

features that may be implemented along with which issues, challenges or risks are associated:

The existing Flinders Street Station facade is heritage listed, and therefore must remain for

the redevelopment.

A number of exits at both ends of the station will reduce patron congestion and give access

to key external facilities such as federation square, trams and taxi’s, as well as easy access to

surrounding streets and shops.

Recreation areas for people visiting retail or food outlets located at or around the station.

‘Hidden’ passages for services staff such as custodians, administrative staff and

police/security that are out of view of commuters.

Utilising redeveloped upstairs areas such as the existing ballroom for conferences and

functions, delivering value for money and ‘cost offsets’ for the government in paying for FM

services.

From a construction perspective, a design that will allow for minimal impact on ongoing train

services and station operation is essential. This is in terms of actual construction space, noise

and pollution for people using the station during construction.

Design Team

FM (Savills) Delivering value for money assets.

Sponsor

Finance and

feasibility of

designs.

Construction

Practicalities

of design.

Legal Risk

allocation, contracts etc.

Architect (Grimshaw)

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3.2 Value for Money Value for money in terms of design, will be delivered by creating a design that meets project

objectives as both described above in Section 3.1 above and through the provisions and design

decisions listed below.

One of the key outcomes in the design of this project is to achieve a high green star rating. This

project objective will be delivered by:

Use of solar panels to offset emissions and reduce power consumption of the facility. These

will be discretely placed to not affect design aesthetics, but still gain sun exposure.

In order to reduce the usage of potable water, all toilets within Flinders Street Station will be

connected to a grey water and/or rainwater system.

Urinals in the male toilets will also feature a ‘No Flush’ (No Flush Solutions, n.d.) water

management system to further maximise the reduction in water use.

Water will be heated using a gas assisted solar hot water system.

Architectural and Structural materials will be sustainable and recycled wherever cost and

technology will allow.

Other value for money assets selected during design includes:

Vandalism proof assets such as strengthened glass will last right through the project with a

comparatively minimal refreshment cycle to regular glass.

German manufactured escalators and lifts, again, will be more expensive but will have a

longer refreshment cycle, function better and provide better value for money in the long

run.

Easily upgradable ICT elements integrated with the design will allow for whole of life

innovation delivering long-term value for money.

Delivering a design that is consistent with the feel and culture of Melbourne was also integral in

delivering value for money outcomes for the Department of Transport and the Government.

3.3 Experience, Capability and Capacity Melbourne Rail Connect have chosen to partner with Grimshaw Architects to manage the design

aspect of the Flinders Street Redevelopment project due to their prior history in railway station

design. Grimshaw also have experience in the PPP model of project procurement methods. Some

projects that Grimshaw Architects have been renowned for in station design include the following:

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Nunawading Station, Melbourne, Australia.

The Redeveloped Nunawading Railway station was completed in 2010. Grimshaw Architects not

only provided design services but urban planning services as well.

Figure 5: Nunawading Train Station

Southern Cross Station, Melbourne, Victoria.

Grimshaw Architects partnered with Jackson Architects for the design of Southern Cross Station.

Southern Cross Station was delivered as a Public Private Partnership and completed in 2006. Both

Grimshaw and Jackson architects were part of the Civic Nexus Consortium.

Figure 6: Southern Cross Station

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4.0 Construction The Builder is charged with the construction of the Project in compliance with the relevant

authorities, statutory requirements including the commissioning and handover in accordance with

the existing rail operating programme.

4.1 Understanding of Key Issues At John Holland we understand there will be a multitude of issues on any given project. We aim to

identify, assess and manage all possible issues involved in the re-vamp of Flinders Street Station.

We have identified some of the major issues within the Flinders Street Station project as being:

Construction

Heritage listed Buildings

OHS

Public Safety

Station Façade

Incorporation of existing utilities

Safe site access

Providing access for delivery and installation of construction materials (e.g. large structural beams and prefabricated structural concrete).

Security of site and site employees Innovative Design

Incorporating the ‘Clocks’

We aim to be innovative in every aspect of our projects as well as this we match innovation with value for money

Incorporating Heritage Buildings

Ensuring all stakeholders are satisfied with design Sustainability/environmental ratings

Sustainable design,

Green Construction

Green Construction Materials

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Financial

Financing costs

Obtaining funding

Projects return on Investment

Exceeding Budget. Budget comes hand in hand with time restraints and quality of work; each aspect will affect the other. By producing value for money and innovation in the project we can achieve higher quality work for less money and stay on schedule.

PPP Consortium

Communication issues

Establishing good relationships between all parties in the consortium is essentially for the project to run smoothly, by actively involving government, shareholders, Stakeholders, Facilities manager, Operations manager and Design teams.

Technology

Making use of new technology in the project in as many aspects as possible

Providing sufficient resources and space for future technology to be easily fitted to the completed structure in the future/after the life of the project

General Public/Public Transport

Providing safe paths for public to avoid construction areas

Working to restricted spaces of time due to public transport interference and degree of Noise and debris from construction works

Risk Management

At John Holland we aim to identify all risks involved throughout the project. To do this we implement a risk management system;

Identify, Asses, Control and Monitor

By implementing these steps we can ensure all risks are managed and monitored to ensure no more risks arise.

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4.2 Challenges and Risks during Construction Key construction challenges and risks that John Holland have identified include:

CHALLENGE/RISK DESCRIPTION SOLUTION RISK

LEVEL

Safety Of The Public

Will the surrounding public be protected from construction works during project time

Fencing and security will be prominent around the entire site to protect the surrounding public

Medium

Pollution Of Surrounding Area

Will noise, air and water pollution become a concerning factor around the site area.

Adequate pollution barriers will be installed to decrease amount of pollution being produced on site. (I.E. dump bins, sediment traps, noise barriers, exhaust fans)

High

A Green Site

Keeping a clean and green site. Clean workplace with green materials.

With the help of correct pollution control measures the site should be kept to a high standard of cleanliness. Where possible, recycled materials will be used.

Medium

Security Of Site

Will it be possible to restrict the public from obtaining access to the site to protect their own safety?

Fencing around site will prevent the public from gaining access.

Medium

Functionality Through Project

Will trains be delayed or decreased in running times?

Alternative route plans will be created to replace any lost route times. This will be done by extra buses and extra trains leaving from neighbouring stations

Medium

Site Access For Materials And

Employees

Policing who and what gains access to the site.

Access cards will be used by all personnel coming to and from site to prevent any unwanted visitors

Low

OHS Will all personnel of the work site follow OHS protocols and use PPE.

OHS programs will be held at the start of the commencement of the project that will be compulsory for all site personnel. All appropriate PPE will be provided by John Holland

Medium

Time Will the project commence and finish on time.

Using risk measures and appropriate personnel for jobs the project will be on track at all times

High

Old Infrastructure/New

Infrastructure

Will original pipe, frame and electrical work coincide with the new works?

Using experienced tradesmen and correct materials this will prove no problem.

Low

Table 3: Challenges and Risks during Construction

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4.3 Delivery of Project Programme

To guarantee a smooth transition from brief to handover, John Holland will ensure that facets and

people throughout the company are working efficiently and effectively in harmony with the project

itself. This will be achieved through processes such as;

The restructuring of work practices where needed,

Prioritizing tasks and procurement times,

Communicating with all types of personnel associated with the project to confirm a clear

understanding of what is expected and,

Keeping up to date with training programs for OHS and work practices to guarantee a safe

and successfully workplace.

The following outlines the project programme in more detail.

Program Development

Planning

Identify Potential Projects

Scope, Schedule and Budget

Project Selection

Project Development

Start Project

Surveying, Environmental and Engineering Reports

Approved Design

Preliminary Plans

Advanced Plans

Final Plans

Award Construction Contract

Contract Tendering

Contract Selection

Construction Management

Commencement of Construction

Completion of Construction

Project Handover

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4.4 Consortium Structure and Management within John Holland In order for a successful project each contributing company in the project must work together in

harmony. Certain companies and bodies will answer to specific people but it is critical that these

communication links are clearly illustrated to avoid any unwanted conflict and disputes. An overview

of our consortium structure can be found in the introduction to the EOI, while a specific ‘John

Holland’ management/operational structure (relevant during the construction phase) can be seen

below in Figure 7.

Figure 7: John Holland Management/Operational Structure during Construction Phase

4.5 Management between State and Designers

In order to guarantee the delivery of a successful project it is vital that the design, construction and

facilities management teams work closely to ensure all works being carried out, intertwine with the

corresponding team’s works. To help maintain a strong relationship between design and

construction, both teams have been sourced from John Holland. Being a large already developed

company it will help with the communication between teams in turn making sure what is designed,

will be constructed as issued.

JOHN HOLLAND

`

SITE FOREMAN

`

SUB-CONTRACTORS

`

CARPENTERS

`

ELECTRICAL

`

PLUMBERS

`

STEEL

`

CONCRETE

`

GENERAL

LABOUR

`

INDEPENDENT AUDITORS (OHS, QUANTITY SURVEYOR, ETC)

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Prior to the hand over stage both John Holland and Savills, the Facilities Management sector will

work closely together to assure a smooth transition. This will be achieved through the thorough

inspection of all works completed and the comparison of designs issued to the works completed.

It is important that all three teams oversee each other’s work to understand what is being bought to

the table for all facets of the project. This will help in the understanding of each section for all teams,

helping to minimise all risks of common construction problems such as;

Wrong deign drawings being used,

Construction of infrastructure in the incorrect places and;

Inaccurate placement of machines such as ticket machines.

John Holland believes the communication between teams is a vital ingredient to a successful project.

4.6 Value for Money

In order to keep under budget and inject money into the right areas of our project, John Holland has

incorporated several approaches in order to achieve value for money. Some of these are:

Prefab materials- Concrete slabs and timber framing will reduce transportation times as only finished products need delivery. This will save time and money in the project as no time is needed for construction on site and buying prefab materials will decrease the chance of any off cuts or unused material.

Correct personnel and numbers- Making sure the correct personnel are on each individual job will help as they already have knowledge on what is expected. Also having too many workers on the one job is a waste of labour, if the correct number of workers are carrying out a job it will create more available workers for other jobs.

Experience and capability- Being such a diverse company, John Holland has all the experience and is more than capable of carrying out such a project. Specializing in such rail facets as rail construction, station and depot facilities and signalling, we will have only the most experienced and competent team working on this project.

Newest Technology –Being such a large company working on large scale projects, we believe it is in our best interest to keep ahead of the times in technology and how it is used on the construction site. We are continually researching and testing all technologies and tools available on the market. Only the most recent, practical and functional technology will be installed and used on this project, creating a state of the art rail complex.

Assessment checks- At John Holland we hold not only the quality of our work as a whole but also each employee’s individual work. Having only the most experienced and capable team members working for us, we will still carry out assessment checks on all work to guarantee that all work carried out is well above what is required.

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4.7 Stakeholder Interaction Throughout the process of this project, during design and construction many stakeholders will be

included. The following list outlines such stakeholders and also describes the ways of communication

between the builder and themselves. All stakeholders are different; therefore the communication

for each one must be tailored to their positions.

Customers- Customers will be the public using the transport. As they are a large population they will

be informed of design and construction through local media like radio, TV or newspaper. Around the

construction site there will also be detailed plans, posters and signage outlining what will be

undertaken. Also on our website, there will be an overview of the project and outline things such as

start and completion times, companies involved and how it will benefit the commuters.

Employees- Valued very highly at John Holland, employees will be kept informed regularly by onsite

visits and meetings. It is important that all personal on site are aware of all changes and updates on

the project in order to keep on schedule and decrease all risks on site.

Government (and its agencies) - Representatives from site will be in contact often to inform

government of design changes and progression. Government will want to know how it will help the

public, and how it will help to solve the problem currently in the public transport sector so it is vital

that they are included the out the projects lifecycle.

Suppliers- Suppliers may be curious into what their product is being used for. We value all suppliers

and realize that the use of their product is important to them. Therefore site visits or photographs

will be organized to show how their products have benefited the project.

Unions- Union officials will be visiting the site regularly. Meetings will be held with the builders in

order to communicate anything that is of relevance. Workers will also obviously alarm the

representatives of anything they are concerned about

4.8 Experience, Capability and Capacity

One of the leaders in contracting, engineering and service providers in Australia, John Holland is one

extremely diverse company, which is always willing and capable to endeavor on any project, no

matter the scale. As one of the biggest contributors to educational facilities with in Australia, we

have been a loyal partner since we have been established to both state and federal bodies. Helping

to deliver projects efficiently using PPP’s and going beyond what is expected. Our experience in rail

projects has been crafted over many years, contributing to our capability is being able to undertake

the following works:

Rail project development

Integrated planning and operations

Station and depot facilities

Signalling, traction and control systems

Track construction

Maintenance and asset management

Plant and equipment

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Past Projects:

Springvale Road Rail Alliance: o Working with several other companies John Holland was associated with the

construction of both the new road and rail for the Springvale Road Rail. All this construction was done whilst the crossing remained open. This shows that John Holland is capable of undertaking large projects, while maintaining the operation of the infrastructure and services in the surroundings.

Metro Trains Melbourne:

o Melbourne’s very own rail service provider. John Holland is one of the strong and experienced groups that Metro Trains Melbourne calls on. Not only does John Holland's association with the Metro Trains Melbourne project outline its experience and capabilities across a diverse range of sectors it also shows that they have worked on similar projects in the same vicinity and excelled in doing so.

Laverton Rail Upgrade: o While being a smaller scale to the project at hand John Holland was awarded the

works of Laverton Station. These works included the construction of: An additional track including a footbridge

A rail bridge

Car parks

station platform

retaining walls

John Holland was able to design and construct the project within time and budget. Flinders

Street needs a revamp, through this project; John Holland has proved they are capable.

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5.0 Facilities Management It is necessary that Melbourne Rail Connect play an active role in the facilities management of the

Flinders Street Station Redevelopment. As such, Melbourne Rail Connect have partnered with Savills

Australia. Savills has 13 offices around the country, with over 800 employees, and a further 200

offices around the world. In 2010, Savills managed $3.5billion worth of projects playing a role in

everything from project management, facilities management and design (Savills, n.d.).

5.1 Understanding of Key Issues Savills recognises several key issues which need to be addressed with regard to facilities

management at Flinders Street Station, which are:

1. Providing the right environment for Metro Trains Melbourne to effectively run Melbourne’s

train network through the station both cost effectively and with value-for-money.

Consultation will occur regularly with Metro Trains Melbourne from project inception to

determine and understand Metro Trains Melbourne’s needs to conduct their core business,

which is to operate Melbourne’s train network.

2. Providing a high quality of service. Savills is committed to providing the highest quality of

service that not only meets, but exceeds industry standards. Savills track record and

previous work is evidence of this dedication to quality service.

3. Savills will assess all risks associated with the operation of the proposed Flinders Street

Station redevelopment using a risk assessment matrix, with risk levels ranging from very

low/low to critical. Risk management will be prioritised based on severity of risks, and dealt

with accordingly.

4. Responding to change due to the accelerating nature of technological advancements, all

facilities proposed for Flinders Street Station will need to be future proofed. This means that

all facilities will need to either be designed to last or to be readily replaced with newer

technologies, with our ICT solutions allowing for easy upgrade of components. Replacement

will need to be completed efficiently and cost effectively so as to minimize inconvenience to

commuters.

5. Environmental footprint reduction is essential. Savills will minimise the environmental

footprint that is left behind by Melbourne Rail Connect through operation and maintenance

after the 30 year concession period and beyond. Therefore environmentally sustainable

resources and materials will be used in the design and construction of facilities in the

Flinders Street Redevelopment. Also the use of renewable energy will be maximised, to

further decrease environmental impact during operation and increase value-for-money by

reducing operating costs.

6. Health and Safety is another key issue. All facilities provided and operated by Savills will

adhere to all relevant health and safety standards and legislation. For example good lighting

increasing visibility, training staff to work around hazards present at the facility (high voltage

wires/tracks) and strong security presence.

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5.2 Delivery of Project Objectives and Scope A key aspect of this project that is considered imperative to the success of the Flinders Street

redevelopment is the need of the facilities manager to innovate in terms of customer service. To be

successful in this, it is necessary to use cutting edge technologies at Flinders Street Station, while at

the same time making sure that all facilities are considered environmentally sustainable.

Savills will provide and manage all soft and hard services, and asset management, however, all ICT

services will be designed by ICT specialists ‘Titan ICT Consulting’, and overseen by Savills. This is to

ensure maximum value-for-money and innovation in the delivery and management of ICT services in

the Flinders Street Redevelopment.

Shown below are a list of services within the scope of what Savills will be providing, also showing

how these services and project objectives will be delivered:

o Cleaning and Waste Management

A combination of waste and recycling bins will be placed in strategic locations within

the station, emptied frequently by cleaning staff.

As toilets are prone to harbouring harmful bacteria, they will be cleaned multiple

times on a daily basis.

Environmentally friendly cleaning agents will be used to reduce impact to the

environment, meeting the green objective identified for this project.

o Security

Commuter safety has become a growing issue especially at night. An increased

security presence will be provided on platforms to make Flinders Street station a

safe environment.

CCTV cameras to be placed in strategic locations within the station.

Employees will be able to access staff areas through the use of key passes, which

grant access to authorised personnel only.

o Plumbing

All plumbing to be upgraded during the re-development will help minimise water

use, cleanliness and ongoing maintenance of the new facility. Savills will provide

ongoing plumbing and maintenance checks during the project life.

o ICT services

Wireless communication systems for staff, security etc. to communicate with each

other anywhere in the facility in real time.

Staff tracking via wireless communication systems listed above, showing current

location of staff on controllers end, and alerting them to an area of attention if

required (i.e. alerting cleaning staff if someone has made a mess in the food area) on

their end.

Safety provisions with automated messages about platform safety etc. played

throughout the station with good quality (low life cycle refreshment) speakers

placed right throughout the station.

During emergencies, use of variable message signs will direct patrons to the nearest

exit (i.e. screens normally used for displaying train times).

ICT data collection provisions will allow for more accurate performance monitoring.

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Automatic alerts for all staff in case of any emergency. ‘Smart’ security cameras will

be used that automatically identify alert ICT control centre to potential problems

such as areas of congestion, people in distress etc.

o Electrical

Ongoing maintenance of lighting systems and wiring etc. around the station will be

undertaken by Savills at regular intervals during the year.

Others services within the scope of what Savills delivers include customer service, occupational

health and safety, FM staff training and other general maintenance and operational duties.

5.3 Consortium Structure and Management Once the project has commenced operation, the major active member of the consortium will be the

facilities manager Savills, who through the management structure shown below in Figure 8 will

deliver all soft, hard and asset management services. As a key requirement for this project was to

deliver innovation through the use of ICT, a specialist sub-contractor in ‘Titan ICT Consulting’ is used

to deliver experience and additional value for money in this area.

Figure 8: Savills Management Structure during the Operational Phase

5.4 Providing Value for Money (through Services and Assets) Savills will provide value for money right through the life of this project, both in the facilities

management services we are providing, and having been involved in the design; through the assets

and outcomes delivered through the Flinders Street Station re-design.

Providing a value for money service is one of the key goals set out by Savills in managing this facility.

The basic approach being used to achieve this value for money service is to maintain and operate

Flinders Street Station to a level that achieves overall stakeholder satisfaction and expected outputs

by stringently following any Partnership Victoria guidelines related to service delivery.

By closely following all relevant sub-sections of these guidelines, Savills can ensure the value for

money delivery of any operational/maintenance service through the following provisions:

Facilities Manager (Savills)

TITAN (ICT

Consultants)

Consultant)

Soft Services ICT Specialist

Services

Asset

Management

Hard Services

Management Relationship

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Parent guarantee (for ICT sub-contractor): To guarantee the value for money performance

(and outcomes) of the ICT management solutions devised by specialist sub-contractor ‘Titan

ICT Consulting’, a bank guarantee will be in place to ensure compensation in the unlikely

event that damages should occur. Any other specialist sub-contractors that carry higher risk

will also provide this form of bank guarantee or insurance bond.

Ongoing performance monitoring: Ongoing performance monitoring as part of our ISO9000

certified quality control process will ensure value for money in all aspects of delivering

contracted services whether they be general or specific in their scope. This ‘audit’ will occur

for all services provided by Savills as described in Section 5.2 Scope. The performance of

each of these will be graded against their original service specification.

Temporary failure mitigation and rectification: As what is essentially part of our ongoing

performance monitoring and measuring process mentioned above, any ‘availability’ or

‘quality’ failure in either a soft or hard service will immediately be rectified with a temporary

solution as pre-determined in a fully documented operation manual, with a permanent

solution put in place within a time period determined by the scale and impact of the failure.

Transfer of risk and FM expertise: The transfer of all risk related to service delivery (and

asset management) to Savills, will allow us to provide our proven private sector

management expertise in FM and also provide greater value for money for the government.

One of the main focuses we will have in achieving overall stakeholder satisfaction (a key outcome

identified by the State Government of Victoria), is to constantly engage in user interaction, as part of

both our qualitative and quantitative performance measuring and monitoring process. This user

interaction framework (key to our overall stakeholder interaction) will allow us to measure whether

our key goals and outputs are being achieved. Much of the quantitative assessments will be enabled

by our ICT information and data collection systems, reducing the need for traditional interaction

measures as to not bother users of the station (for example gaining key data on the number of

people through the station gates and at what times, collected automatically by a computer).

Our design philosophy was to select components that were of a certain level of quality, would be

easy and cost efficient to maintain but also deliver value for money both during operation and after

handover at the end of the project life. The assets will also deliver in achieving key outcomes for the

station. Our value for money through assets used and selected by Savills during design is as

described in Section 3.0 Design and Section 5.2 Delivery of Project Objectives.

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5.5 Experience, Capability and Capacity Savills has had vast experience both in facilities management of public infrastructure, but also

participation in previous Public Private Partnerships. Also, having a major headquarters in

Melbourne, Savills is well aware of the culture and what is expected and required from users of its

oldest and most famous station. Of important note is the existing relationship Savills already have

with current operator ‘Metro Trains’, and experience in giving planning advise in relation to the

facility management on current aspects of the existing train network.

A summary of what is required for the operation of Flinders Street Station can be seen below in

Table 4, showing our experience, capability and capacity.

Flinders Street Station FM Requirements

Proven Experience, Capability and Capacity

Relevant Project

Asset management in a Large Project

YES Village centre, Batemans Bay NSW

Integration of Heritage Building with new technology

YES GPO re-development, WA. Preserved heritage components.

Involvement in Green Star projects

YES 140 Ann Street, QLD. (Commercial High Rise).

Operation of current facility while upgrade being implemented

YES Villawood Immigration Centre, NSW. (FM in terms of retail

tenancy management)

OH & S Auditing and Compliance

YES Indooroopily Shopping Centre, Brisbane QLD

General day-to-day operation of a large public space

YES Indooroopily Shopping Centre, Brisbane QLD

Security Services YES Indooroopily Shopping Centre, Brisbane QLD

Building and Plant Servicing, Maintenance and Repairs

YES Indooroopily Shopping Centre, Brisbane QLD

Cleaning and Maintenance of Public Facilities

YES Indooroopily Shopping Centre, Brisbane QLD

Information and Communication Technology Integration

Titan ICT: YES A key signalling project recently completed was the ‘Southern

Suburbs Railway Project’.

Table 4: Relevant Experience, Capability and Capacity