Northern Beaches Hospital Road Connectivity and Network Enhancement Project

Client: Roads and Maritime Services

Location: New South Wales

Role: Procurement and transaction advisors

Date: 2015

The new Northern Beaches Hospital will be located adjacent to major arterial roads serving Sydney's northern suburbs (Warringah Road, Wakehurst Parkway, and Forest Way).

The NSW Government is planning to invest $400 million in road upgrades around the new Northern Beaches Hospital with works scheduled to be completed in time for the hospital opening in mid-2018. 

Planned road upgrades will increase the capacity of the road network and provide a better travel experience for vehicle users

Scope of work

Roads and Maritime Services sought to reduce the time normally required for the procurement of a major road D&C contract. E3 Advisory professionals were engaged to develop and implement an accelerated procurement and transaction methodology.

E3 Advisory’s recommended accelerated procurement approach significantly reduced the project tender timeframes while keeping the project within budget. Key features of this approach include:

  • Progressive submission of tender information at intermediate milestones. Tenderers were required to progressively submit their final tender documentation at intermediate milestones, not as a single document at the end of a lengthy tender preparation period
  • Introduction of tender gateways. The interactive process required each tenderer to pass through a series of tender gateways at distinct points in the tender process. Each of these gateways was focused on ensuring continued alignment between RMS’s expectations and the tenderers’ technical and commercial proposals.
  • Pre-agreement on contract terms. Tenderers were engaged in focused commercial discussions during the tender period, representing a significant departure from a traditional D&C tenders
  • Extensive interaction with tenderers. The interactive tendering process utilised workshops and staff embedded in the tenderers’ teams to maximise the exchange of information between the parties
  • The use of client assessed risk adjustments, rather than standard ‘question and answer’ dialogue to facilitate a shorter assessment and award period

Key achievements

Our approach assisted RMS to reduce the time between tender submission and contract award by two-four months which ensures the road infrastructure is in place in time for the hospital opening.