Changing Delivery Strategy – Assessing the risk
During the development and delivery of large-scale infrastructure projects it is sometimes necessary to make material changes to the delivery strategy. Factors potentially influencing such a change include market capacity issues (lack of competition), interface complexity issues (technical, organisational, contractual) and project budget pressures (tender pricing > budget).
Key questions and discussion points:
Do certain contract types offer better value in terms of managing certain project risk(s)?
Do additional interfaces mean new risks and hence more contingency?
When pricing interface risk how do we avoid gaps and/or overlaps?
It the project scope is the same should the overall project forecast cost at completion be the same?
How do clients evaluate retained risks under different contracting types? • How do clients assess in-house capability to manage different contract types and interfaces?
Speakers
John McLuckie
Chairman, Valorem Advisory
John has over 40 years’ experience in key leadership roles on large and complex infrastructure and rail projects, covering all aspects of project definition, business case, procurement, design, supply, construction, commissioning, maintenance and operations. Recently, John has undertaken key roles for government agency teams within Australia and New Zealand on a wide range of rail projects. John played a key role in engaging with markets and key stakeholders in developing delivery strategies and then supporting procurement and delivery. His experience covers a wide range of delivery strategies, ranging from single PPP (including operating concession) through to multiple packages including: collaborative contracts (e.g. incentivised target cost); construct only; design and construct; design, build and maintain; and project development agreements (for associated development opportunities). Based on this experience, John has a thorough knowledge of markets and highly relevant PPP experience.
Kay Salvair Smith
Partner, Minter Ellison
Currently Kay leads Minter Ellison's Infrastructure Consulting team. For more than 20 years Kay has partnered with government and private clients to deliver commercial and technical infrastructure solutions across project and asset lifecycle phases in the Australian infrastructure and development markets Prior to her current position, Kay held the position of Executive General Manager, Advisory Services at RPS Australia Asia Pacific. Prior to this role Kay was the NSW State Manager for Everything Infrastructure Group. And prior to this Kay was a Principal at Evans and Peck where she was the Operations Manager for Economic Infrastructure. Also of note, Kay is passionate about supporting indigenous tertiary engineering education and empowering and mentoring women.
Dr Mike Rollo
EA Fellow and Director, Waterman Burns & Associates
Mike is a Director at Waterman Burns and Associates. Mike has held CEO and Executive Manager positions with some of the world’s largest infrastructure development companies. He has 35 years line management and corporate experience in Australia, New Zealand, Asia and the United Kingdom, working in the engineering construction and property development sectors. Mike was the Chief Risk Officer for Leighton Holdings/CIMIC Group from 2012 to 2017, during which time he oversaw the successful tendering and delivery of many of the largest infrastructure projects completed in Australia, New Zealand, Hong Kong and South-East Asia. In 2020, Mike completed his PHD studies at the University of Sydney in Construction Project Management, researching the management of mega infrastructure projects and identifying the 15 factors to ensure success.