Developing the Business Case
MBM advises ACT Government
The Juris Partnership has been unveiled as the preferred bidder on the ACT Law Courts precinct, the Australian Capital Territory’s first Public-Private Partnership. The works to be undertaken as part of the project will include:
- the refurbishment of the existing Magistrates Court and Supreme Court
- integrating a new building to combine the courts into a single facility with improved amenities
- maintaining the courts for 25 years with the provision of FM Services including asset maintenance and replacement, cleaning, security, utilities management, grounds, mail, waste and possibly recording and transcription services.
MBM was appointed FM Adviser for the project in June 2014 and has undertaken procurement options analysis, contract document preparation, and tender evaluation services. There were a number of complex issues that MBM worked through with the client in order to determine the scope of the FM services to be included and the level of risk transfer across to successful bidder to ensure value was achieved through the procurement process.
One of these complex issues was the value of transferring the risk for maintenance and asset replacement of the existing Magistrates Court for a 25 year period given the likelihood that the majority of major asset (lifts, boilers, chillers etc) and existing fixtures and finishes were unlikely to meet the comprehensive condition and performance standards required for the new building. MBM undertook a detailed asset survey identifying aspects of the Magistrates Court that were unlikely to meet the condition and performance standards and, in conjunction with the project team, incorporated appropriate schedules (backlog maintenance schedule, deferred refurbishment schedule) within the returnable proformas. This process ensured that the cost to bidders for assessing the risk of including the facilities was reduced and the Territory was able to clearly identify the costs associated with the inclusion of the Magistrates Court and bringing it up to the required condition and performance standards.
For more information please contact Justin Noakes at JustinN@mbmpl.com.au