June 3, 2022
Welcome to the June edition of Projects & Construction Monthly.
This edition addresses:
- Labor leads;
- Full steam ahead for Australia’s longest road tunnel;
- Cost blowout on Western Australia’s new freeway;
- Recent major projects;
- LPC Lawyers’ current ‘Doing the Deed’ series; and
- LPC upcoming ‘State of the Nation’.
Labor leads
Labour will form the next parliament of Australia after winning the 2022 federal election.
So what does this mean for Australians?
Led by Anthony Albanese, Labor have made pledges to deliver on several issues and here is what they promised:
- Cheaper childcare;
- Housing affordability measures;
- Cheaper medicines;
- Better pay for workers;
- Improved standard of care for residents of aged care and working conditions of staff;
- Net zero emissions by 2050 with a target of 43% reduction by 2030;
- Legislate a “powerful and transparent” National Anti-Corruption Commission by the end of 2022;
- Introduce Fee Free TAFE; and
- Rebuild the manufacturing in Australia instead of send it offshore.
Full Steam Ahead for Australia’s Longest Road Tunnel
NSW Government has committed to building Australia’s longest road tunnel between Katoomba and Lithgow in the Blue Mountains, following a feasibility analysis and investigation process. The 11-km toll-free tunnel is aimed to improve travel across the mountains as the stretch on the Great Western Highway is currently steep, windy and notorious for traffic jams.
The tunnel will be part of the $8 billion Great Western Highway upgrade, with construction on the tunnel section to start at the end of 2024, and planned to be operational by 2027/28.
Cost blowout on Western Australia’s new freeway
The construction of the new freeway in Western Australia has blown out yet again to $1.25 billion despite major cuts to the scope of the project, including the removal of several key interchanges and a promised 15-minute time saver for journeys between Perth and Margaret River.
The WA government revealed it will spend an extra $80 million on the Bunbury Outer Ring Road, which comes in addition to the extra $320 million promised by the Commonwealth to deal with cost escalations and supply chain problems.
The flow means the freeway will now cost more than $46 million per kilometre.
Recent Major Projects
Sydney’s M12 Motorway set for take-off
The NSW Government has announced the successful contractors who will deliver the first two sections of the $2 billion construction of the new M12 motorway linking to the Western Sydney International Airport.
Seymour Whyte will build the central section of the M12 between Cecil Park and Badgerys Creek (7.5 kilometres), while CPB Contractors and Georgiou Group joint venture will deliver the western section to The Northern Road, which includes the airport interchange and Elizabeth Drive flyover.
The western section package involved the construction of 6.1 kilometres of motorway, including 11 bridges.
The third element – the eastern section – will provide a connection to Elizabeth Drive and the M7 Motorway. Procurement of this section will occur this year.
Work will commence this year and is scheduled to be completed in late 2025.
$150M locked in for QLD marine precinct expansion
The QLD Government has announced a $150 million commitment for a major expansion to the Cairns Marine Precinct that will enable the maintenance, repair and overhaul of more and larger ships.
This includes two wharves which will expand capacity to carry out in-water maintenance on vessels used by the Australian Defence Force and Australian Border Force.
The Queensland Government will invest half the cost of a new Common User Facility at the precinct; this will include a 5000-tonne shiplift, allowing ships of up to 120 metres in length to be repaired and maintained on hardstand areas.
Final designs revealed for Melbourne’s $631 Union Station
Designs have been finalised for the new $631 million Union Station in Melbourne’s east, following extensive community consultation since December 2020.
The works will see two dangerous and congested level crossing removed and a new premium station built, with the project set to be completed in 2023.
For more information and to view the designs, click here.
LPC Lawyers’ ‘Doing the Deed’ Series
LPC Lawyers has just finished the publication of a three-part series on all things deeds.
‘Doing the Deed’ – Part 1
The first part of the series explores the general operation of a deed and when they typically arise during construction projects. Read more here.
‘Doing the Deed’ – Part 2
Part two considers the commonly used deeds within the construction industry, including deeds of assignment, novation and variation. Read more here.
‘Doing the Deed’ – Part 3
The final part of the series discusses a few of the crucial questions to ask when considering a release to ensure the form of the release reflects your intentions. Read more here.
LPC Lawyers’ upcoming ‘State of the Nation’ Series
LPC Lawyers upcoming series is set to focus on government investment into infrastructure projects and programs, the implications for Australian infrastructure under an incoming Australian Labor Party government and delivery risks across the national infrastructure pipeline.
You can read part one here.
Stay tuned for parts two and three of this series to be posted later this month.