MEETING OF COUNCIL - Town of Cambridge

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COUNCIL 27 NOVEMBER 2012 10. COUNCIL REPORTS 10.1 WEMBLEY SPORTS PARK - APPROVAL TO AWARD TENDER RFT34-12: BUILDING WORKS PURPOSE OF REPORT: To seek Council approval to award Tender RFT34-12 for the new Perth Netball Association Building and associated works to Badge at a tender offer of $ 2,338,550 plus GST. BACKGROUND: The Town is responsible for the design and construction of the Perth Netball Association building, netball court reconfiguration and associated infrastructure within Wembley Sports Park in line with the Financial Assistance Agreement (FAA) reached with the State in April 2012. Tender RFT35-12 was awarded for the civil works (including new netball courts, roads, car parks, landscaping, infrastructure and signalised intersection) to meet the Master Plan in October 2012 (Council report 10.2 refers). Tender RFT34-12 has been called for the construction of the new Perth Netball Association Building. DETAILS: Tenders for the building works closed on 13 November 2012 after state wide advertising. Eight (8) tenders were received. Tenders were assessed in accordance with the qualitative and compliance criteria set out in the tender invitation. An Executive Summary of the tender assessments is included as a Confidential Attachment to this report. Badge's tender for these works was $ 2,338,550 ex GST. They have been assessed the most appropriate tender within the qualitative and compliance criteria. Project Program The project program is as follows:- 27 November 2012 Tender awarded for building works January 2013 Works commence on site (subject to approvals) July 2013 Practical Completion Budget With the award of this tender, the budget for Wembley Sports Park works can be finalised. The project budget is $12.78m inclusive of construction costs, payments to State within the Financial Assistance Agreement (FAA), fees and contingencies. H:\Ceo\Gov\Council Minutes\12 MINUTES\November 2012\E Item 10 Onwards.docx 219
COUNCIL 27 NOVEMBER 2012 The project budget is broken down as follows:- Construction Works - Civil $ 7.895m Construction Works - Building $ 2.338m Total Construction Works $ 10.233m Professional Fees $ 0.977m State Professional Fees (coming from FAA) $ 0.315m Infrastructure Contribution $ 0.134m Share of Road works Total Payments to the State $ 0.430m $ 0.879m Share of headworks (estimate) $ 0.400m Contingency $ 0.291m Total Project Budget $ 12.780m The sources of funding are detailed below: Financial Assistance Agreement: $ 7.480m Advance from Nursery Site $ 5.000m Borrowings $ 0.300m Total Funding $ 12.780m POLICY/STATUTORY IMPLICATIONS: In accordance with Council Policy, Council approval is necessary for the award of tenders greater than $100,000 unless the decision is delegated to the Chief Executive Officer. Local Government Regulations provide clear ability for the Town to seek clarification of tenders, as well as capability to negotiate with other tenderers if the preferred tenderer and Town fail to enter into Contract. FINANCIAL IMPLICATIONS: The Town will need to set in place borrowings to fund the balance of the construction activity. This can be managed within the Town's limit of borrowings from Western Australian Treasury Corporation. STRATEGIC DIRECTION: The eventual development of this land for sporting purposes is consistent with the Town's strategic plan of creating communities of choice. H:\Ceo\Gov\Council Minutes\12 MINUTES\November 2012\E Item 10 Onwards.docx 220
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MEETING OF COUNCIL - Town of Cambridge

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