Construction Law Semester 1 Final Alternative Exam This Exam carries 40 marks Choose and answer either Question One or Two Each question carries equal marks There’s no maximum word limit, but you...

The University of Queensland
Running Head : Management
1
Management
Construction Law
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Abstract
      As per the report of Public-Private Partnership Legal Resource Centre (2019) Australian territories and states have effectively used PPPs for improving the social and transport infrastructure of the country. Australian government considered public-private partnership as an effective mechanism for bringing changes in the infrastructural facilities. If we are analysing the PPPs in Melbourne we can understand that schools, hospitals, metros and stations constructed by using the PPP model. In this research paper, we are analysing the or two real examples of a PPP for a Construction Project in Melbourne. We are also analysing the advantages and disadvantages of using PPP in construction.
Question One
1. Two real Examples of a PPP for a Construction Project in Melbourne 
Example One – Melbourne Convention Centre Development
Example Two – Metro Tunnel Project 
1.1 Brief Description of the Selected Projects
Melbourne Convention Centre Development
The operational plan for Melbourne Convention Centre Development was started in 2002, and the major department involved in the construction of Melbourne Convention Centre Development is the Department of Jobs, Precincts and Regions (DJPR). The total value for the project was about $367m, and the centre was built on the banks of Yarra river and it can accommodate more than 5000 delegates. In the year of 2004, the Victorian government entered public-private partnership with nine private sector partners including Plenary Group, Deutsche Bank, Colonial First State, Multiplex Constructions, Multiplex Facilities Management, Hilton International, 
NH Architecture, Woods Bagot and Larry Oltmanns. Green Building Council of Australia awarded 6 Star Green Star environmental design rating to the centre. For completing the work, the city of Melbourne contributed around $43 million and the remaining fund financed privately. The private sector was responsible for designing, building and maintaining the convention Centre (Ash et al 2015, p.2), they are also responsible for constructing the Seafarer’s Bridge and other connected areas of the convention centre. 
Metro Tunnel Project
The operational plan for Metro Tunnel Project was started in 2016, and the Victorian government and Lendlease, John Holland, Bouygues Construction and Capella Capital entered in a public-private partnership in the year 2017. Both are agreed to complete the tunnel and stations under PPP. Lendlease, John Holland, Bouygues Construction and Capella Capital, was responsible for the design, construction and designing of the project. The parties involved in PPPs agreed to share the cost on an equal basis (50:50). The designing work started on the year of 2018 and the main objective of the project was to reduce the traffic connections and improve the quality of the metro rail services. Melbourne Metro Rail Authority (MMRA) is a major stakeholder and responsible for the delivery of the metro tunnel project. Before starting the project the parties involved in the project conducted Environment Effects Statement and they also analysed the social and economic impact of the project (Guo et al 2017, p.32). In the year 2020, the parties faced a commercial issue related to the project and private parties conducted a meeting with the Victorian government for settling the issue. 
Both parties have taken $1.37 billion for completing the project, apart from this the private parties are responsible for installing the specific assets and equipment’s that are required for the organization. 
    Major Aspects
    Melbourne Convention Centre Development
    Metro Tunnel Project
    Government Agency Involved
    Department of Jobs, Precincts and Regions 
    Rail Projects Victoria
    Private Parties Involved
    Plenary Group, Deutsche Bank, Colonial First State, Multiplex Constructions, Multiplex Facilities Management, Hilton International,
NH Architecture, Woods Bagot and Larry Oltmanns
    Lendlease, John Holland, Bouygues Construction and Capella Capital
    Overall
    $367Million
    2.74 Billion
    Environment Impact
    6 Star Green Star Award
    Conducted Environment Effects Statement
Question Two
2. Advantages of Using PPP in Construction
While analysing both projects we can understand that it helped the government for improving the infrastructural facilities and it also helped for pooling fund from different private sources for completing the project in time. Now we can analyse the advantages of using PPP in construction in a detailed way.
2.1 Access to private sector finance
While analysing the current condition of Australia we know the fact that the country required a large infrastructure for meeting the needs of the people in the country. Current finance minister Australian Simon Birmingham clearly stated that for improving the facilities the government required more fund, funding gap is the major problem faced by the country. With the help of PPPs, the government...