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Warringah Freeway Upgrade, NSW

(Western Harbour Tunnel and Beaches Link Program)

Warringah Freeway Upgrade, NSW
Client:
Transport for New South Wales (TfNSW)
Project Value:
$1.8 billion
Years of Service:
2019
Services Provided:
  • Transaction Management

The Warringah Freeway Upgrade Project is part of the Western Harbour Tunnel and Beaches Link (WHTBL) Program and will upgrade approximately 4 km of the Warringah Freeway, Australia’s busiest road.

The project will improve the way the existing Freeway operates, reduce merging, provide a dedicated bus lane and provide connections to the future Northern Beaches Tunnel and the Western Harbour Tunnel and into the WestConnex roadways system.

CLIENT'S OBJECTIVES

The Warringah Freeway Upgrade Project is a critical component of the WHTBL Program.

Key features of the Warringah Freeway Upgrade Project include:

  • widening existing bridges
  • bridge demolitions
  • bridge construction
  • cut and cover tunnel and dive structure construction
  • significant pavement upgrade works
  • ITS upgrade works
  • complex construction traffic staging, and
  • construction phase maintenance.

OUR ROLE

The Transaction team was responsible for:

  • preparing the transaction strategy and procurement program
  • preparing EOI and RFT documents (including tender price schedules)
  • reviewing contract documents, including the WFU Deed, SWTC and Site Access Schedule
  • managing the EOI process and shortlisting of Tenderers;
  • designing a bespoke and versatile collaborative Interactive Tendering Process that could be progressively amended to suit COVID-19 restrictions
  • managing correspondence between Tenderers and TfNSW (including reviewing proposed responses from the project team to Tenderer’s queries from a commercial and technical perspective)
  • managing the evaluation of Tenders, for both non-price and price evaluation workstreams (including managing the clarification of Tenders for TfNSW)
  • presenting and reporting on the outcomes of the evaluation
  • facilitating issue resolution and appropriately capturing agreed positions in the contract and technical documentation, and
  • providing a high level of commercial and technical support during negotiations and contract finalisation with the First Ranked Tenderer.

KEY ISSUES

TfNSW required a transaction services provider to manage the procurement of the $1.8 billion Incentivised Target Cost contract for the design and construction of the Warringah Freeway Upgrade Project. Our Director Richard Martin took on the role of Transaction Lead and is supported by our Advisors Matt Frewer (Transaction Manager) and Siva Hesavan, Kevin Tran and Sep Zarrin (Transaction Advisors).

The Project will enable the connection of the new motorways planned under the WHTBL Program into the existing motorway network. This upgrade will ensure the WHTBL Program delivers its connectivity and safety benefits for public transport, freight and private vehicle customers. It will also improve the journey experience for existing users. Once complete, the upgraded corridor will optimise demand across the Sydney Harbour Tunnel, Sydney Harbour Bridge and the future Western Harbour Tunnel.


KEY OUTCOMES

The Incentivised Target Cost contract was awarded to the successful tenderer in Q3 2021. This outcome marked the first time that an Incentivised Target Cost contract had been utilised on a major road project in New South Wales, which also prompted positive feedback from the construction market to the prospect of more collaborative style contracts.

The ConnellGriffin Transaction Team was highly praised by TfNSW as an important part of achieving this milestone, not only from the negotiation period leading up to contract award, but also throughout the entire procurement process.

By working collaboratively with the project team (including technical, legal and cost advisors), the Transaction Team was able to facilitate an effective process to a achieve value-for-money outcome for TfNSW.

Our Advisors were able to the manage the multifaceted transaction process by leveraging the extensive lessons learned and market knowledge acquired through the team’s progressive approach to transactions of major NSW road projects over the past 5 years.

One example of our team’s capability is the creation of a customised and responsive collaborative Interactive Tendering Process that was adapted to the everchanging COVID-19 restrictions whilst not comprising any value for the project.

CG Team Members Involved:

Richard Martin Richard Martin Director Wesley Rhode Wesley Rhode Director Matt Frewer Matt Frewer Director Duncan Stirling Duncan Stirling Director

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