Two contracts awarded for the M1 Pacific Motorway extension to Raymond Terrace, on time, in a buoyant market.

TSA’s transaction management team managed the end-to-end procurement of 2 concurrent packages for the $1.68bn Black Hill to Tomago and Heatherbrae Bypass contracts. We developed the bespoke collaborative design and construction deeds, and request for tender (RFT), as well as the scope of works technical documentation (SWTC). This end-to-end approach ensured ‘no gaps’ between interfacing projects from the technical, commercial and environmental approvals perspectives.

During the procurements we managed concurrent and highly interactive sessions, and oversaw and assisted in evaluation and contract negotiations for two successful, on-time contract awards.  With tight affordability estimates in a buoyant market, TSA managed a value proposition process, ensuring TfNSW received value for money technical, commercial and construction solutions.

The challenge

The M1 Pacific Motorway extension to Raymond Terrace (M12RT) project includes a 15-kilometre dual carriageway motorway link between the M1 Motorway at Black Hill and the Pacific Highway at Raymond Terrace. It includes major interchanges at Black Hill, Tarro, Tomago and Raymond Terrace. It is one of NSW’s main arterial transport corridors and provides one of the last ‘missing links’ along the M1 Pacific Motorway. Watch a flyover of M12RT.

Parallel procurement of two contract packages in tight timeframes

To drive competition, market participation and value-for-money, TfNSW split M12RT into two collaborative design and construct (D&C) packages. They needed to be procured concurrently while also managing and obtaining the environmental approvals at the same time. The packages were:

• The Southern package (Black Hill to Tomago), which included a 2.5km long viaduct across the Hunter River and floodplain; and
• The Northern package (Heatherbrae Bypass).

TSA managed the transactions for both contract packages concurrently including a parallel environmental approvals process, with on-time and on-budget awards.

Meeting affordability benchmarks through innovative procurement strategies

TSA drafted the tender documents to include elective tender options and bespoke commercial principles for the project-specific risks. The intention was to enable the market to provide better value-for-money solutions to TfNSW that still met the minimum mandatory technical and performance requirements. Using a highly interactive phase, we ensured that technical and commercial tender options were discussed with all parties to ensure acceptability and alignment with TfNSW’s expectations and expected environmental approval conditions. The interactive phase also included interim submissions enabling the market to be provided with further feedback whilst developing their tenders, and provide TfNSW further assurance that solutions would be acceptable whilst providing VfM. TSA assisted TfNSW in the review of the viability of over 90 submitted tender options using our inhouse technical, environmental, cost, programming, and commercial experts to assist in the assessments of these and to determine VfM.

Blending extensive transaction experience with deep commercial, delivery and technical expertise

This was a challenging program of transactions to deliver concurrently, in a short time. We brought together our extensive transaction management expertise, and deep, in-house commercial, technical and construction domain knowledge. Our team was made up of transaction veterans such as Monika Sud as Transaction Director and Alasdair Dunlop as Transaction Manager. We added to this Rob Stevenson, Lisa Hauth, Garett O’Connor and Hugh Bishop, who are each deep domain experts in design, commercials and construction.

Extensive transaction experience

Extensive experience and deep foundations in transaction management were essential to managing these concurrent transactions. An extensive suite of D&C contract documents were drafted, reviewed and finalised in preparation for release of the RFTs. These included the D&C deed, and the entire suite of RFT documents. For each contract, there were over 100 contract documents to be developed. Our experienced team used their inside-out knowledge of the government roads D&C contract documents and procurement processes to hit the ground running. We mobilised quickly, working collaboratively with TfNSW to ensure the on-time issue of the RFTs.

The interactives for the two contract packages were bespoke for each project. We designed them to ensure collaboration with the tenderers, sufficient time for the development of the tenders and to allow TfNSW to provide suitable feedback to the tenderers before the final submissions.

Within 6 weeks of tender close, TSA had led, facilitated and assisted with evaluation, drafted evaluation reports for both transaction packages and had approvals for tenderers to move into the contract negotiation phase.

Deep technical expertise

TSA has its roots in real-world, hands-on project delivery. That technical, commercial and delivery knowledge is the special sauce we bring to every engagement. On the M12RT transactions we were able to bring online commercial, technical, cost, program and constructability advice at short notice. Throughout the procurement process our team ensured TfNSW, tax payers and stakeholders got value for money technical, constructability and commercial solutions. We also conducted viability assessments on the tender options, in a highly interactive tender process.

Our team of experts

Monika Sud

Monika is a Fellow with the Institution of Mechanical Engineers, and has held Transaction Director and Procurement Director roles on projects worth a combined $6b in the past 3 years. In addition to M12RT these include Newcastle Inner City Bypass, Great Western Highway Upgrade and Princes Highway Upgrade programs. She has also provided expert transaction and procurement strategy advice on water projects including Greater Sydney Desalination Program and Warragamba Dam Raising.

Alasdair Dunlop

Alasdair is a chartered civil engineer with both Institute of Civil Engineers and Engineers Australia. He has 10 years’ experience in both the transaction and delivery of major civil projects across New South Wales and abroad. His transaction management experience includes the end-to-end transaction for both D&C and alliance contracts on major projects such as M12RT, Sydney Metro Western Sydney Airport, Mulgoa Road and Newcastle Inner City Bypass.

Garret O’Connor

Garret is a senior civil engineer with over 30 years’ hands-on delivery experience. He has held senior technical advisory roles on M12RT, WestConnex 3B, Ferry Wharf Upgrade, EnergyConnect and Humelink.

Hugh Bishop

Hugh has a 40-year career in civil construction. He has specialist expertise in bridge and structures design, and construction problem solving. He has provided constructability reviews on Wentworth Bridge, Batemans Bay Bridge, Nowra Bridge, Sydney Program Alliance and Newell Highway Program Alliance.

Lisa Hauth

Lisa is a civil engineer with 20 years’ experience across the lifecycle of major transport projects. This includes VicRoads roles as Principal Bridge Engineer and Operations Manager for the M80 Upgrade. Lisa has held a number of roles on North East Link. These include Constructability Advisor and leading the structures and risks and opportunities assessment for the PPP transaction.

Rob Stevenson

Rob has a 40-year career in the engineering and construction industry. His depth and breadth of experience means he brings a wealth of technical, contractual and commercial knowledge to each transaction. Rob has advised on Rankin Park to Jesmond, Nowra Bridge project, Batemans Bay Bridge project, the Northern Road Upgrade Stage 3 North and Additional Crossing of the Clarence River at Grafton, WestConnex, NorthConnex, Pacific Highway Upgrades Nambucca Heads to Urunga, and Kempsey Bypass.