April 1, 2022
Welcome to the April edition of Projects & Construction Monthly.
This edition addresses:
- the potential for international conflict to present issues on local projects;
- Recent announcements in major projects;
- LPC Lawyers’ current ‘The Pipeliner’ series;
- LPC Lawyers’ upcoming series on the 2032 Olympics; and
- LPC Lawyers expands into 2022.
Conflict in the Ukraine and Local Projects
The ongoing conflict which continues to ravage Ukraine presents serious concerns and the potential for repercussions with respect to major infrastructure projects.
The conflict has resulted in turbulent international trade arrangements and ongoing volatility in commodities markets. Given this uncertainty, it is important for contracting parties to be aware of their rights and obligations with respect to ongoing projects.
If your project has been impacted because of the recent conflict, read our recent article on claiming force majeure here.
Recent Announcements in Major Projects
South East Queensland City Deal to deliver $1.8 billion in infrastructure
The City Deal for South East Queensland has recently been agreed, with the Australian Federal Government, Queensland State Government, and Council of Mayors for South East Queensland committing to the delivery of $1.8 billion worth of infrastructure in the region.
The investment contains $667.77 million from the Federal Government, $618.78 from the Queensland State Government, $501.62 million from the Council of Mayors, and $75 million for industry investments.
The investment is expected to fund more than 30 projects, generating 2,000 jobs. The focus of the projects will be on ensuring the state is in the best position possible to host the 2032 Olympics.
Key projects which form part of the City Deal include:
- $450 million for the Gabba Metro Station;
- $285 million for the SEQ Liveability Fund to deliver projects of social and economic priority for the councils;
- $150 million for the SEQ Innovation Economy Fund to support capital projects that promote and grow the region’s innovation economy;
- $105 million for resource recovery infrastructure to develop a region-wide approach to managing waste and progress the region for a circular economy; and
- $70 million for digital connectivity projects to support place based telecommunications infrastructure and improved digital connectivity.
Hells Gates Dam Funding Approval
The Federal Government has committed to investing $5.4 billion to construct the Hells Gates Dam. The Dam will be located on the Burdekin River in North Queensland.
The project will include a 100-gigalitre dam and be bolstered by three downstream irrigation weirs.
During construction the project is expected to create more than 7,000 and inject approximately $1.3 billion of Gross Regional Product into the region. After completion, the dam is estimated to provide 3,000 regional jobs and generate up to $6 billion in Gross Regional Product during operations.
Notably, while the funding has been guaranteed by the Australian Federal Government, this remains subject to the completion of environmental approvals and the final stage of the business case, which are expected in June of this year.
METRONET Midland Station Development
The $246.7 million contract for the design and construction of the new Midland Station in Perth has been awarded to the Midland Junction Alliance.
The project involves relocation of the Midland Station to the Midland Town Centre and extending the line to Bellevue.
The project is jointly funded by the Australian Federal Government and Western Australia State Government on a 50:50 basis. Early works are expected to start later this year.
Bruce Highway safety upgrades to start at Isis Central
Safety improvement works valued at an estimated $12.84 million are set to start on the Bruce Highway at Isis Central and Booyal, as part of the Bruce Highway Upgrade Program.
The significant projects, between North South Road and Ringwood Road, include a right-turn lane into Adies Road, a wide centre line treatment and two new heavy vehicle rest areas. The heavy vehicle rest areas are funded as part of a $6.08 million allocation by the Australian Government to upgrade rest areas along the Bruce Highway between Gympie and Benaraby.
Construction is expected to take about 10 months to complete.
LPC Lawyers’ ‘The Pipeliner’ Series
Part 1 – Australian Pipeline Projects
This series explores pipeline projects in Australia and the things for contracting parties to bear in mind. Part one details the current and future major pipeline projects within Australia. Read more here.
Part 2 – Pipeline Project Risks Through Failed Planning
Part two explores the various regulatory, geological, engineering and construction risks associated with pipeline projects. It further highlights how these risks can be mitigated and the importance of ongoing legal support. Read more here.
Part 3 – When Things Go Wrong
Part three details what happens when things go wrong on pipeline projects, including the importance of well drafted dispute resolution clauses and having clearly established processes to avoid lengthy disputes. Read more here.
LPC Lawyers’ Upcoming Series
LPC Lawyers upcoming series is set to focus on the infrastructure projects, risks and opportunities associated with the 2032 Olympics, which will be hosted in Brisbane, Australia.
This series is set to take a deep dive into the upcoming major projects which are set to transform South East Queensland, as well as the guiding principles which will inform how projects are assessed and implemented. The series will also be undertaking an analysis of previous Olympics, identifying key lessons learned which will shape how contractual risks should be allocated and apportioned.
Stay tuned, as the first article in this series will be posted on 4 April 2022.
LPC Lawyers’ continued expansion into 2022
LPC Lawyers is looking to hire a Construction Litigation Lawyer (1 to 3 years PAE) and a Law Clerk as we expand and continue our plan for growth.
Litigation Lawyer (1-3 years PAE)
The candidate requires experience in drafting correspondence, simply pleadings, briefs for Counsel and some advisory work for clients. Familiarity with the Security of Payment legislation is ideal, but is not mandatory.
Law Clerk
The role is ideal for a candidate in their third or fourth year of study and includes preparation of legal documents and correspondence, assisting solicitors with case management, conducting legal research and general administrative tasks. The candidate must be available to work three days a week.
For more information or to apply, please email your resume and cover letter to [email protected] and [email protected].