South Morang Rail Extension Alliance

“We chose Systemix for their experience and difference; they challenged, educated and supported us with excellent process management and documentation, offering forthright perspectives and adapting proven methodologies to our unique environment.

Systemix was also keen to understand how they could improve their performance in the future. We achieved outstanding results and we are delighted with the way the project is going.”

Bernhard Held – Project Director – Victorian Department of Transport

About this Project

Objective

Following a competitive tender process, Systemix was engaged to advise on the approach to establishing the SMREA, and to design and conduct the selection process. At that time Victoria had not built any new railways for more than 50 years and the Department of Transport (DOT) had relatively little experience of alliancing, so the $400M SMREA was breaking new ground. There was also significant pressure to secure and demonstrate value for money (VFM) through the establishment process.

Scope

The scope of Systemix’s engagement included:

>> Strategic planning
>> Assisting with RFP development
>> Owner‟s team preparation
>> Facilitating proponent interviews and selection workshops
>> Developing the Proposed Compensation Framework
>> Facilitating the commercial alignment
>> Capturing of ‘lessons learned’ for future Victorian rail alliances.

Outcomes

The consortium led by John Holland and AECOM was selected, with all matters resolved and agreements signed on schedule. DOT realised VFM through a contract that included incentives to deliver the TOC within a proponent-specific ceiling, determined during the competitive selection process. This was done without compromising relationships or collective responsibility for project outcomes.

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