February 4, 2022
Welcome to the February edition of Projects & Construction Monthly.
This edition addresses:
- The construction industry’s new gender equality policy;
- The major funding announcement for next generation grid scale batteries;
- Recent announcements in major project;
- LPC Lawyers is hiring; and
- LPC Lawyers’ current ‘Pandemic Projects’ series.
Victoria’s Building Equality Policy Set to Shake Up the Construction Industry:
Concrete walls are coming down for women in construction following the introduction of a new policy mandate for government projects valued at $20 million or more.
In an Australian-first, the Victorian Government has moved to ensure space for women among the male-dominated industry under the Building Equality Policy (BEP). BEP’s objective: to create a more gender inclusive industry by disrupting stereotypes, norms and roles in the construction industry.
In effect since 1 January 2022, the policy mandates female representation in at least three per cent of each trade role, four per cent of each apprentice/ trainee role, seven per cent of each non-trade position and 35 per cent of management, supervisor and specialist labor roles.
Suppliers to these projects are required to provide women with equal access to the diverse roles available on site and encourages to set aspirational targets that exceed the minimum requirements in the BEP.
While there will be a two-year transitional period, by 2024 penalties will apply where contractors fail to meet female representation requirements.
$100M Funding for the Next Generation Grid Scale Batteries
On behalf of the Australian Government, the Australian Renewable Energy Agency (ARENA) has announced a $100 million competitive funding round for grid scale batteries equipped with advanced inverters to support the grid.
The fund, known as the Large Scale Battery Storage Funding Round, will provide funding to new battery energy storage projects of 70 MW or larger operating in the National Electricity Market or Western Australia’s Wholesale Electricity Market. In addition to supporting new build projects, funding will also be available to existing grid scale batteries seeking to retrofit advanced inverter capability.
The funding round aims to incentivize and de-risk private sector investment and overcome barriers to the deployment of advanced inverter technology. By funding advanced inverter technology at scale, ARENA hopes to provide valuable insights into the operations and emerging capabilities of advanced inverters.
It is expected that the funding round will support at least three projects, with a maximum grant available of $35 million per project. Applications will be open to all battery energy storage technologies, provided they are equipped with advanced inverters.
Recent Announcements in Major Projects
UGL wins renewable and utility contracts worth $296M
CIMIC Group’s UGL has secured $296 million in design, engineering, procurement and construction contracts in the renewables and utilities sectors.
The works involve:
- the design and build of two 330 kilovolt switching stations and construction of approximately 65 kilometers of double circuit transmission line for the MacIntyre Wind Farm Precinct Connection Project for Powerlink in South-West Queensland;
- the design and construction of an 88-megawatt solar farm, substation, and transmission line at the Mica Creek Solar Farm Project in the Mt Isa region in Queensland for APA Group; and
- the engineering, procurement, and construct an 87-megawatt solar farm and substation upgrade at Tailem Bend for Vena Energy in South Australia.
Each of the contracts commenced in late 2021 and is expected to be completed in 2023.
Safety Works underway on D’Aguilar Highway Section
Work has started and will continue until late 2022 on the $19 million D’Aguilar Highway safety improvement project between Sandy Creek and Kilcoy in Queensland.
The D’Aguilar Highway is a strategic link in Queensland’s state-controlled road network, linking the Bruce Highway to South Burnett. It acts as a key link to the Bruce Highway and the coast for rural businesses and communities of South Burnett and Brisbane Valley.
The works will include:
- road widening from west of Neurum Road to Sandy Creek Road and from Arnolds Road North to west of Scrubby Creek;
- installing wide centre line treatment to separate opposing traffic flows;
- shoulder widening;
- extending and replacing culverts to improve drainage;
- clearing roadside vegetation;
- new signage; and
- installing safety barriers.
The project is jointly funded, with the Australian Government contributing $15.2 million towards the project and the remaining $3.8 million provided by the Queensland Government. The project is expected to support over 60 local jobs.
Final Major Contract Awarded for Western Sydney Airport
The Federal and NSW governments have awarded a $1.8 billion contract to CPB Contractors and Ghella to build the new twin metro rail tunnels as part of the Sydney Metro – Western Sydney Airport project.
The 23-kilometres metro line will link St Marys to the centre of the new Aerotropolis via the new Western Sydney International (Nancy-Bird Walton) Airport, with six stations to be built along the alignment. The contract also includes excavation and civil works for new stations at St Marys, Orchard Hills, Western Sydney International (Nancy-Bird Walton) Airport, and Aerotropolis.
The first of four tunnel boring machines (TBM) will begin tunnelling by early 2023 to deliver 9.8 kilometres of twin rail tunnels in two sections. Once the tunnelling contract is complete in late 2024, work will continue to lay tracks and fit out stations.
We’re Hiring!
LPC Lawyers is looking to hire a Construction Litigation Lawyer with 1 to 3 years PAE as we expand. For more information or to apply now, please click here.
LPC Lawyers’ ‘Pandemic Projects’ Series
Part 1 – COVID-19 Impact on Major Projects and Construction in Australia
The first part of the series explores the impact of COVID-19 on major projects and construction in Australia, providing an overview of recent public investments and evolving government regulations. Read more here.
Part 2 – Current and Ongoing Projects: Challenges and Possible Disputes
Part two considers the practical implications of COVID-19 for current projects, including labour and supply shortages, a contractor’s entitlement to claim for delay, and mitigating cost escalation. Read more here.
Part 3 – Don’t Get Caught Out – Build Your Resistance Against Procurement Risk
The third part of the series focuses on the challenges faced by Contractor’s who may have assumed procurement risks pre-pandemic and the main takeaways for risk allocation as we enter the post-pandemic market. Read more here.
Part 4 – COMING SOON
The final part of the series will discuss strategies for mitigating the impacts of COVID-19 and managing long term risks. COMING SOON