Rebuilding our regional centres in the context of the NDRRA Matt Bradbury, Partner Ben Yeoh, Senior Associate 11 October 2012

Introduction Reconstruction, repair and rehabilitation of 1300 projects across the Toowoomba region – Demolition & Disposal of Road Materials – De-silting and General Clean Up Works – Stormwater Asset Repairs – Road Repair Work – Supply and Install Road Furniture – General Concrete Works – Formation, Embankment, Bulk Earthworks and General Grading / Trim works – Road Reconstruction Works – Ground Stabilisation and Revegetation Works – Other

Introduction 3 Damage across area of 12,000 sq/km Significant damage to 10,000 km road network

Constraints Completion of reconstruction work by June 2013 More than double Council’s then annual capital & maintenance programs Caretaker period Avoid excessive risk premiums Control scope creep Competing demand for contractors and resources – Other NDRRA reconstruction work in surrounding regions – CSG 4

Governance structure Council established initial NDRRA team comprising of: – internal Council project staff – McCullough Robertson (legal and probity advisors) – Evans and Peck (commercial framework) NDRRA project overseen by Steering Committee – Probity Plan and declarations Selection Panel: – Council project staff – Evans and Peck – McCullough Robertson (probity advisor) 5

Monthly Reporting AECOM Program Director TRC Mayor & Council Probuild Executive Representative CEO Chair Infrastructure Chair Finance F.K. Gardner Executive Representative CMC Executive Representative General Manager Infrastructure Services General Manager Finance & Business Strategy General Manager Infrastructure Services General Manager Infrastructure Services Manager Finance AECOM Program Director Probuild Construction Director F.K. Gardner Construction Director CMC Construction Director AECOM Design Program Managers Contract Management / Supervision Community & Stakeholder Management Safety/ Quality / Environment Probuild Construction Director F.K. Gardner Construction Director CMC Construction Director Manager Project Management Services Manager Project Management Services Project Manager Flood Recovery Council Support Engineers North Central South Council Support Engineers North Central South Program Leadership Team NDRRA Program Steering Group Program Management Team Third Party Advisors ● McCullough Robertson ● Evans & Peck

Contract model Principal Program Consultant – AECOM – Public tender – Collaborative Program Agreement – Cooperative Working Arrangement – RAMP Construction contractors – FK Gardner, Probuild and Civil Mining & Construction – EOI and restricted tender – Collaborative Project Agreements – Cooperative Working Arrangement – Works packages – RAMP 7

Contract framework 8 Toowoomba Regional Council Construction Contractor 2 Construction Contractor 1 Principal Program Consultant Cooperative Working Arrangement Collaborative Program Agreement Collaborative Project Agreement

Procurement process / delivery framework for performance of works 9 EOI Capacity to deliver the works program Resource capability and availability Collaborative delivery approach Local participation Community / stakeholder management Capacity to deliver the works program Resource capability and availability Collaborative delivery approach Local participation Community / stakeholder management Competitive pricing of initial work scope / key work elements Key resource rates and productivity Reasonable margins based on industry norms Innovative delivery solutions to drive cost efficiency Competitive pricing of initial work scope / key work elements Key resource rates and productivity Reasonable margins based on industry norms Innovative delivery solutions to drive cost efficiency Optimise use of existing Council resources Comparative benchmarking of actual VfM performance Productivity improvement and efficiency gains Collaboration between Council, PPC and CC Optimise use of existing Council resources Comparative benchmarking of actual VfM performance Productivity improvement and efficiency gains Collaboration between Council, PPC and CC RFP Award of Initial works package Award of further work packages Open competition TMR pre- qualification or equivalent 6 short- listed proponents Award 3 construction contracts Award additional works packages based on VfM performance and competitive price benchmarking Capability & Capacity Full Price Competition VfM Performance

Contact Presenter:Matt Bradbury Position:Partner Direct line: Presenter:Ben Yeoh Position:Senior Associate Direct line: