1. Introduction

Main Roads has a formal set of Guidelines and a Procedure that it uses to identify the delivery methodology for its capital works projects.

This paper contains extracts of those Guidelines and Procedures. The purpose of this paper is to provide some background information for use in the risk identification workshop that forms part of the delivery methodology selection process. 

2. Purpose of Workshop

The workshop has been designed to:

· Give the providers of design and construction services to Main Roads to provide input in the selection of the delivery methodology that will be used to deliver the project;

· Capture the service providers objectives and preferred outcomes;

· Identify risks that will adversely impact the delivery of the project and the achievement of Main Roads and the service providers objective; and

· Capture the service providers opinion on what they see are the advantages and disadvantages of the potential delivery methodologies.

3. Procedure

Many factors determine the success of a project. An important factor is the selection of the most appropriate project delivery method(s), that is, the system that sets the contractual arrangements for design, construction, operations and/or maintenance.

In selecting a suitable project delivery method, project managers must gauge the level of complexity and uniqueness of the project, the appropriate level of control to be maintained and the internal and external environments. This will assist in obtaining the best value for money and management of the project risks. It makes effective use of both governmental and private sector resources and balances critical factors such as:

· Scope;

· Cost;

· Time;

· Quality of design and/ or construction;

· Internal environment; and

· External environment.

The selected project delivery method will also reflect the desired allocation of risks between the construction contractor(s), service providers and Main Roads. The selected project delivery method should develop a co-operative relationship between Main Roads and the contractor to assist in achieving Main Roads’ objectives. The project delivery method selection framework comprises of:

Stage 1: Project Characteristic Assessment - assesses characteristics and constraints that are specific to the project.

Stage 2: Project Packaging Assessment - identifies other projects that are aligned in funding (by funding year) and may be suitable for packaging.

Stage 3: Project Risks Identification and Assessment – identifies and assesses risks of the project.

Stage 4: Project Delivery Scorecard Assessment – assesses the value drivers and eliminates other project delivery methods.

Stage 5: Delivery Options Assessment - identifies suitable project delivery method(s).

The overall process is shown in Figure 1.

This paper only contains information on Stages 1, 2 and 3.

This paper covers Stages 1, 2 and 3.

It also contains information on selected contracting strategies that Main Roads uses to select the delivery methodology for its projects.