Changing the way we deliver major road projects

Future road upgrades will be progressively awarded to pre-qualified contractors using a new Program Delivery Approach (PDA) model, with projects awarded based on the contractor’s capability, capacity, past performance and ability to deliver value-for-money solutions.

Construction companies were invited to join the panel to fast track procurement and get projects shovel ready sooner and there will be an annual opportunity for new contractors to join. A specialist design panel will also be created

The PDA approach features elements of the alliance and Design and Construct (D&C) contracts and will help us to get the best outcomes for our project.

We’re have made changes to:

  • create a more sustainable contractor market
  • reduce procurement time and costs
  • better integrate project planning and project delivery
  • improve collaboration and provide financial and future project opportunities.

Benefits for the construction market include:

  • sustainable supply opportunities for small, medium and large companies
  • long-term competition
  • improved cost certainty
  • better allocation of risk pricing
  • streamlined procurement processes.

How will projects be awarded?

Projects will be awarded to construction companies that are on one of five Contractor Panels. These panels will allow contractors to compete for projects with a size and complexity that matches their capability at both individual and organisational levels.

Once selected, a contractor will follow a Two-Staged Delivery Model, entering into a Project Development Phase to determine the scope and value of the project, and then the Project Delivery Phase once contracts are executed.

How does the contractor get paid?

Payment will be through an Incentivised Target Cost (ITC) payment mechanism, which reimburses direct costs and includes cost and non-cost incentives.

What are the different Contractor Panels?

The panel system aligns the capability and skills of eligible contractors with the complexity and value of our projects. It has four main construction categories based on project value and complexity.  A fifth panel has been established for specialist providers for activities such as utility works.

How do I join the panel?

MRPV will assess applications to join the panel on at least an annual basis.  If your organisation is interested in joining the panel, please get in touch through the contact details below and further details will be provided.

Who is on the panel?

Panel contractors are detailed below and will be reviewed on an annual basis. MRPV also intends to re-engage with the market to further develop Panel 5 in relation to specialist utilities works.

Panel 1 

Panel 2 

Panel 3 

Panel 4 

Panel 5

Value > $300m High Complexity

Value $400m – $100m High – Moderate Complexity

Value $150m – $25m Moderate Complexity

Value < $50m Low Complexity

Specialist
Acciona Construction Australia Fulton Hogan Construction  BMD Constructions ACE Contractor's Group  Comdain Infrastructure
CPB Contractors Laing O’Rourke Symal Group (formerly Civilex) Bitu-mill (Civil)  
John Holland*  McConnell Dowell Decmil MACA Civil  
Webuild (formerly Salini Impregilo)   Downer Negri Contractors  
   Seymour Whyte Constructions RTL Mining and Earthworks  
   WBHO Infrastructure  Whelans Group  
   Winslow Infrastructure  

* Note - John Holland is a provisional appointment

Need more information?

For more information please contact the Panel Director at MRPV.ProgramApproach@roadprojects.vic.gov.au

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