The Newell Highway was the first project to be developed under the new alliance partnership in response to the 10 Point Plan and the approach required significant collaboration and a high-performance culture, which have been important success factors and underpin the decision to adopt an alliance delivery model.
This case study demonstrates Transport for NSW (TfNSW) commitment to procure and manage projects in a more collaborative way in line with Point 1 of the 10 Point Plan.
The NSW Government allocated $10 million in 2011 to construct six overtaking lanes on the Newell Highway. In 2013 a further $10 million ($5 million State and $5 million Federal funding) was announced for another five overtaking lanes. By 2018, twenty-one new overtaking lanes had been built with a further thirty to deliver.
The Newell Highway is the longest highway in NSW. It is a crucial 1058-kilometre road connecting NSW to both Queensland and Victoria and is considered to be the freight backbone of NSW.
For safety and travel efficiencies, a minimum of 45 kilometres of new overtaking lanes are required to provide more frequent overtaking opportunities.
TfNSW has adopted an alliance contract model for the Newell Highway Upgrade Program working with industry to procure and manage the project in a more collaborative way under the NSW Government’s 10 point plan. This approach will:
TfNSW introduced a new market procurement process to engage contractors on an alliance model for the remaining Newell Highway upgrades through the following:
An industry briefing was held with contractors and industry members to outline the scope of work remaining on the Newell Highway, with over thirty overtaking lanes still to be delivered.
TfNSW then requested proposals based on the alliance framework, rather than its traditional fixed price procurement model. Following a two-step evaluation process, TfNSW awarded an alliance agreement to implement the program of work of another 30 overtaking lanes.
The project is now in delivery stage, after a successful, collaborative approach to procurement.
The alliance contract approach allowed TfNSW to:
Procure and manage in a more collaborative way
Work collaboratively within a structure of suitably qualified resources with the capacity to deliver the entire program. Additionally, with the alliance, develop, implement and benefit from innovative, efficient and effective solutions and processes.
Achieve efficiencies in the management of the program and resources over the life of the program. Provide the greatest certainty that the time commitments made to stakeholders and the community will be achieved.
Accelerate project delivery
Deliver each of the projects and the overall program, including, but not limited to, areas of planning and construction works, travel reliability and times, and a safer road corridor. The delivery of the 30 individual projects, and maybe more, within the allocated budget and delivered as soon as possible.
For more information, visit the Transport for NSW webpage or contact the team at Transport for NSW.
Phone: (02) 8202 2200