ICN Gateway Breakfast (SA)

Jon WhelanA/Manager Project Delivery

9 July 2015

Adelaide’s North‐South Corridor

78 km running between Old Noarlunga and Gawler

Adelaide’s North‐South Corridor

Torrens Road to River Torrens[due for completion 2018]

The award of the major works contract for the $896 millionproject was announced on 29 April 2015

The successful tenderer was T2T Alliance, a consortiumconsisting of:

Leighton Contractors Pty LtdAurecon Australasia Pty Ltd andYork Civil Pty Ltd

Completion of works by end of 2018

Commence with T2T Alliance

Major Construction Works to begin on

site end of July 2015

Project Timeline

3.7 km upgrade of South Road from just north of Torrens Road to just south of the River Torrens

River Torrens

3 km of non-stop section of roadway (incorporating 2 km of lowered

motorway), approx 8 m below the existing surface under Port and

Grange Roads, and Hawker Street

Improved cycling & pedestrian facilities

Landscaping & noise barriers(where required)

An overpass of the Outer Harbor rail line

Parallel surface (at-grade) roads along the length of the lowered

motorway to connect most local roads and arterial roads to South Road

• An Alliance is a collaborative delivery method in whichthe Owner joins with one or more non-owner parties toshare all the risks and responsibilities in delivering aProject

• It is a proven infrastructure procurement method that isbeing used by governments across Australia to deliverinfrastructure to the community

Competitive Alliance – what is it?

Choosing a Competitive Alliance Procurement Model

• Delivering projects with unclear scope of works• Delivering projects with significant risk certainty • Managing stakeholder issues• Value-for-money

Alliance Contracting Key Benefits

• The parties are incentivised to work cooperatively tocomplete the project within time and budget forecasts

• To find the best solutions for the project (rather than fortheir own interests)

• To work quickly and collaboratively to resolve issues asthey arise

• Promote a positive culture to achieve outstanding resultsfor the Project

Projects of this scale and nature create a range ofopportunities for businesses along the supply chain inproviding goods and services to the major workscontractor. These typically include:

• Materials such as concrete, quarry products etc• Machinery hire• Landscaping• Fencing• Traffic control • Accommodation, food and drink• Fuel• Safety equipment, security etc

A South Australian Industry Participation Plan is an important contractual requirement to:

• Promote economic contribution to the State including employment outcomes and economic growth

• Ensure equitable access for local industry • Monitor and record the outcomes of local industry

involvement

The Industry Participation Plan will outline:

• How many jobs will be performed in SA• Goods and services sourced from local businesses• How tendering processes will provide full, fair and

reasonable opportunities for local businesses

The Office of the Industry Advocate will assist inensuring the contractual obligation is met.

T2T Alliance South Australian Industry Participation PolicyThe Office of the Industry Advocate has been involvedthroughout the procurement phases of this project,T2T Alliancehas committed to:

• Use over 90% local labour with a value over $70 million• Over $1 million in new capital purchases to be permanently

located in the State and it will utilise a substantial list ofcapital equipment

• Over 90% of sub-contracts where most of the product orservice will be carried out in the State with a target spend of$290 million

Workforce Participation

In accordance with the State Government’s ‘WorkforceParticipation in Government Construction Procurementpolicy’ and the State’s ‘Our Jobs Plan’, T2T Alliance will berequired to ensure that at least 20% of labour hours areundertaken by:– Apprentices & trainees– Aboriginal people– Local people with barriers to employment– Displaced automotive industry workers– Up-skilling existing staff

The South Australian Industry Participation Policy

The Policy is in place to ensure that capable SouthAustralian small and medium businesses are given full,fair and reasonable opportunity to tender and participatein significant public and private sector projects.

Thank you.www.infrastructure.sa.gov.au/t2t