week_03. vince d'amico
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Week 03 2012 Role of the Builder in PPP's BUIL 1154 Advanced Construction ManagementTRANSCRIPT
Role of the Builder in PPP’s
Vince D’Amico (Thiess)
} $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
} “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
} AquaSure brings together three companies, all leaders in their fields;
� Degremont - a Suez Environment company and world leader in reverse-osmosis 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
} 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
} 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
} Challenges ◦ Extreme weather conditions experienced ◦ Remote location ◦ Industrial relations
} “However beautiful the strategy, you should occasionally look at the results.” Sir Winston Churchill
} Thank you