Effective And Innovative Partnership Model For Delivery Of Major Treatment Programs

Annual Conference

An additional half a million people will live in Sydney’s North West by 2040, placing increased demands on the city’s wastewater treatment infrastructure. To address the increased loads, Sydney Water established the Lower South Creek Treatment Program (LSCTP), which includes $400M of capacity upgrades and renewal works at three Waste Water Treatment Plants.

Following 15 years of alliancing, Sydney Water took the decision in 2013 to restructure its approach to capital delivery. The decision was founded on concerns over the cost- efficiency of the contractor-led alliancing model, where the principal took a light-touch role, and contractors were able to benefit from self-performing works at a higher cost.

The Delivery Partner contracting model, pioneered on the London 2012 Olympic Games, is being used as an alternate to traditional contracting models. This paper outlines the features of the Delivery Partner model, the costs and benefits when compared to more traditional models and the advantages that are being realised 18 months into the LSCTP.

In establishing a Delivery Partner for LSCTP, Sydney Water sought a contracting strategy that captured the construction skills of a contractor, the program management skills of a engineering consultancy and the in house knowledge of the Sydney Water operators and maintainers. Partnering as an integrated team, the Delivery Partner takes on the accountability and responsibility for the overall program outcomes and provides the management resources required to deliver the program.

Value for money is realised by more effective risk allocation, with the Delivery Partner as Principal Contractor being fully accountable for delivery, however contracts are direct with Sydney Water which reduces margin on margin. Furthermore, Cost efficiency is realised via standardisation of equipment and materials, and procuring contracts program wide. Innovation leading to program savings is rewarded with increased profit share for the Delivery Partner.

The above benefits are materialising for Sydney Water, with technology innovations such as Aerobic Granular Sludge (AGS) and Thermal Hydrolysis, as well as process innovations via the use of BIM to support more integrated program management.

Conference Papers

EFFECTIVE AND INNOVATIVE PARTNERSHIP MODEL FOR OF MAJOR TREATMENT PROGRAMS.pdf

pdf
759 KB
28 Sep 2018

Thursday HEaphy 2 4.00pm.pdf

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1 MB
02 Oct 2018