Delivery mechanism and risk assignmentThe project did not involve significant technical uncertainty and a key challenge faced by the DTEI was its limited capacity to absorb risk with respect to project costs. However, The importance of controlling costs in this project, as identified above, meant that a close relationship between the DTEI and contractors was critical, as was the early involvement of the contractors in the project planning process. As such, the Northern Expressway was procured under a single D&C contract with a high level focus on collaboration.Relationship contracting, a process to establish and manage relationships that aims to remove barriers, encourage maximum contributions, and allow all parties to achieve success, was considered to offer the greatest scope for innovation and supply chain efficiency in the project’s delivery.44 It was also important for providing certainty over price and outcomes through the assignment of key risks such as price escalation, latent conditions and the integration of design with construction.Expressions of Interest for the design and construction of the Northern Expressway were sought in September 2007, with shortlisted registrants invited to submit tenders for the Design and Construct Contract by the end of March 2008.Registrants for the expression of interest process were asked to provide information in relation to both price and non-price criteria, with the latter focused on collaboration between the D&C contractors and at the project level more generally, risk management and mitigation strategies, the approach to environmental issues and community engagement.Following the development of an initial shortlist, registrants attended a positive guidance workshop run by DTEI, providing them with an opportunity to expand upon innovative concepts and ideas and allowing the Department to clarify and validate their written submissions. Requests for tender were provided to a final shortlist of applicants. Three consortia were invited to bid.Reflecting the period of the contract and nature of the site, the contract did not provide for extensions of time or additional payments for wet weather, industrial conditions or latent condition (which could only be effectively transferred if the DTEI project team had undertaken a comprehensive geotechnical investigation).To encourage the full participation of designers in this process the DTEI undertook to compensate participants for intellectual property developed during the tender preparation phase.
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