October 8, 2024
Australia’s transport infrastructure is underpinned by a rail network that connects major operating hubs across the nation. Rail networks increasingly shape as a critical component in supply chains and will be the source of increased funding in the immediate future.
Given that rail projects are often unique in nature, they require careful consideration, diligent planning and a tailored approach to ensure successful delivery. Prior to delivering a rail project, parties should fully inform themselves of the specific risks and consider how they can best facilitate project outcomes and risk allocations.
Key risks likely to arise on rail projects include:
- geographic considerations;
- supply of critical resources; and
- working in or around existing assets.
Geographic Considerations
Geographical constraints and conditions present a critical risk when delivering rail infrastructure, which are ordinarily distinct and unique to any given project. This means parties should ensure careful contractual drafting prior to execution.
For instance, a project in regional areas may require various licences and permissions to enter and utilise land (typically farmland). Further, access requirements may be restricted by existing infrastructure requiring the development of various road networks capable of facilitating the works. When negotiating a contract, parties should consider these requirements. This includes consideration of who is responsible for undertaking the works and how compensation for such works will be facilitated. For instance, it may be necessary for a secondary contractor to be engaged to deliver enabling works, which may include civil and road works, development of camps, and the clearing and development of laydown and storage areas.
On the other hand, rail projects in urban area are likely to face a considerably different set of challenges. Parties may for instance need to consider the need to shut down or limit access to existing transport infrastructure, such as roads, in the interests of facilitating the work efficiently and safely. Furthermore, parties should consider the availability of land and space for tasks such as set down and staging works, which are critical to ensuring the efficiently delivery of a project. These restrictions may also extend to land resumptions, where there may be specific timeframes or limitations are when (or what) may be resumed that impacts the delivery of the works.
Supply of Critical Resources
Traditional rail project will primarily require sleepers, fishplates, fasteners, and spikes, in very high quantities. In a booming construction market, and as investment in rail projects continues, parties should ensure a sufficient supply of these in advance of the commencement of works to ensure the efficient delivery of the works.
Parties should also consider where sustainable alternatives can be implemented to achieve a best for environment, and best for project outcome. For instance, Duratrack are an Australian company which produces recycled plastic railways sleepers which are more resilient than timber, lighter and less carbon intensive than concrete. Whilst this might be one example of a sustainable alternative that could be employed on a rail project, parties should remain aware of the market and potential solutions which might provide similar benefits. Importantly, the implementation of sustainable alternatives will be best facilitated where it is supported by a tailored contractual approach which aligns the contract with the best for project and best for environment outcome.
Working in and Around Existing Assets
Regardless of where a rail project is, there will inevitably be a need to interface and work alongside existing infrastructure assets. Importantly, where contractual provisions reflect such an approach, parties can best facilitate the efficient and effective delivery of the project.
For example, where developing rail works in close proximity to existing rail assets, parties must consider the most efficient and safe way to facilitate such. It is likely in such circumstances closure of existing rail resources will be necessary, especially in circumstances where some works cannot be safely undertaken otherwise. Parties should also be aware of any potential contractual damages regimes which apply for disruption or delays to existing assets, ensuring the appropriate mitigation measures are implemented in respect of such.
Similarly, for rail projects in close proximity (or on) roads and other existing infrastructure, parties should carefully consider the best way to give effect to such. Whether it be the partial or complete shutdown of road networks, these will often be necessary to ensure the safe progression of works. Where it is necessary to establish alternative routes for road users, a constructions methodology should focus on minimising the long-term impacts of such.
Where a contract accurately reflects the necessary interactions with existing assets, and provides a clear process for dealing with such, it can minimise the potential for disputes and ensure the achievement of best for project outcomes.
Legal Support
Lamont Project and Construction Lawyers have extensive experience working across the lifecycle of rail projects, from project development, contract negotiation, ongoing project support, dispute avoidance and support, through to practical completion.
By providing clients a tailored approach to contract negotiations and project support, we can ensure that our clients are best positioned regardless of the particular circumstances.
If you have any questions about your current or future projects, please do not hesitate to contact Lamont Project and Construction Lawyers for a discussion on how we can assist you.
Contact: Peter Lamont or Ryan Bryett
Email: [email protected] or [email protected]
Phone: (07) 3248 8500
Address: Suite 2, Level 2 349 Coronation Drive, Milton Qld 4064
Postal Address: PO Box 1133, Milton Qld 4064