Page 5379 - Week 12 - Thursday, 28 October 2010
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Details of the upper budget limit cannot be disclosed at this time as negotiations are taking place with the contractor. However, I am advised that ACTEW would be prepared to provide that information to the Member under appropriate confidentiality arrangements.
(h) The budget previously submitted by ActewAGL to ACTEW is shown below.
Table 1 - ActewAGL budget for project MM10211
|
Description |
Total | |
|
Design Phase | ||
|
1 |
Project Management - Design Phase |
$9,353 |
|
2 |
Design Costs External |
$45,000 |
|
3 |
Design Costs ActewAGL |
$13,829 |
|
4 |
Contingency (Management Reserve) |
$6818 |
|
5 |
ActewAGL Overheads |
0 |
|
Construction Phase | ||
|
6 |
Project Management – Construction Phase |
$101,622 |
|
7 |
Construction Costs |
$7,210,250 |
|
8 |
ActewAGL Engineering Service |
$567,997 |
|
9 |
Engineering Services External |
$80,000 |
|
10 |
Contingency |
$1,082,174 |
|
TOTAL Project (excluding GST) |
$9,117,043 |
I am advised that the major elements of the project were competitively tendered, with three or more tenderers invited to submit prices. This typically yields contract prices that can be relied upon as 'market tested' and therefore as reasonable.
The manner in which ActewAGL has obtained competitive pricing for this project precludes any visibility of contractor profit margins. However the use of a competitive tendering process should ensure that overhead and profit margins are not excessive. No incentive fees have been allowed for in the contracts for the works.
(i) I am advised by ACTEW that due to the need to maintain the Stromlo Water Treatment Plant as an operational facility, except for shutdowns of short duration, the project is currently anticipated to be physically complete by April 2011, with financial closure of the project to follow.
(j) I have been advised by ACTEW that 12 - 15 separate contracts have been awarded to deliver this project MM10211. The works are being managed as follows:
Table 2 - Procurement Method Summary
|
Ser. |
Project Element |
Method of Delivery |
|
1 |
Project Management |
ActewAGL staff |
|
2 |
Engineering Services |
ActewAGL staff |
|
3 |
Supervision Work |
ActewAGL staff |
|
4 |
Trade Labour |
Either ActewAGL or contract as available |
|
5 |
Design & technical Consultants |
Contractor |
|
6 |
Construction Contract 976/09 - Mt Stromlo Concrete Remedial Repair |
Contractor |
|
7 |
Purchasing Filter Nozzles |
Contractor |
|
8 |
Purchasing Vacuum pump |
Contractor |
|
9 |
Purchasing Hose and coupling for vacuum pump |
Contractor |
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