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M12 Motorway, NSW

M12 Motorway, NSW
Client:
Road & Maritime Services (RMS)
Project Value:
$1.6 billion
Years of Service:
2017
Services Provided:
  • Procurement strategy
  • Market Sounding

The Australian and NSW Governments are planning to develop and construct a $1.6 billion motorway between the M7 Motorway and The Northern Road as part of the Western Sydney Infrastructure Plan (WSIP), a 10-year $4.1 billion road investment program.

CLIENT'S OBJECTIVE:

The M12 motorway will connect Sydney’s Motorway network and provide direct access to the Western Sydney International Airport. Major construction is planned to start in early 2022.

The 16 km motorway will increase road capacity and reduce travel times and congestion, as well as meeting the demands of the anticipated population growth in Western Sydney. The new corridor route will improve movement of freight in and through western Sydney and also serve the Western Sydney Airport Growth Area and the Western Sydney Employment Area.

Elements of the project will include:

  • a 16 km four lane motorway with a median strip separating opposing traffic flow
  • connection to The Northern Road with traffic lights, and
  • provision for future upgrades including adding up to two additional lanes, a motorway to motorway interchange at the M7 and grade separation in the vicinity of Devonshire Road and Mamre Road.

OUR ROLE:

Our Advisor took on the role of Procurement Strategy Lead and he managed the team that provided procurement advice for the project and was responsible for:

  • shortlisting potential procurement strategy development
  • assessing risk and opportunities assessment across the project
  • providing analysis and modelling on contract types
  • delivering a qualitative and quantitative assessment of resource and timing needs for each procurement options
  • reviewing financial PPP possibilities
  • leading cost/budget negotiations into the procurement process
  • undertaking market capacity analysis to identify key participants, and
  • reporting and presenting key findings and recommendations.

ACHIEVEMENTS, SOLUTIONS AND VALUE ADDS:

Our Advisor led the project team that developed the procurement strategy for the M12. Their experience in transaction and procurement management on major infrastructure projects enabled high quality outcomes to be achieved within the four- month tight timeframe.

The team’s key achievements, under our Advisor’s leadership, included:

  • Reviewing and recommending packaging strategies;
  • Providing detailed analysis of contracting methods, which was then evaluated against project specific criterias;
  • Testing the proposed “incentivised D & C model” with project objectives to mitigate the remaining risk outstanding, and
  • Engaging with market sounding to gauge expressions of interest from leading contractors and capacity as joint venture or single entity.

Satisfaction of Client's Requirements:

ConnellGriffin’s high quality work was able to exceed RMS’ objectives of being “value for money” while taking into consideration constraints with project complexity, program and stakeholders. These results were achieved through our highly experienced team undertaking detailed analysis of how shortlisted procurement strategies were able to address risks associated with the M12 motorway. RMS extended ConnellGriffin’s involvement on this project to undertake market sounding.


Co-operative Relationship Contracting:

Our proposed procurement strategy responded to the NSW Government’s “10 Point Commitment to Construction Sector” including:

  • Industry Diversity: The strategy needs to meet the latest government requirement with respect to training and employment.
  • Reduce the cost of bidding: The early risk identification and mitigation based on project specific constraints aims to reduce cost related inefficiencies compared to similar large-scale projects.
  • Market capacity consideration: Market sounding to assess resourcing capability of contractors in a market with several concurrent high profile projects;

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