Australian Construction Organisations Towards Sustainability: Melbourne Park Redevelopment

Project background

Melbourne Park was a sports complex that was initiated by the Melbourne Sports and Entertainment departments to help the city regain its lost image. The projected facilities include an open grand slam, tennis courts, theatres, and football pitches among other important social facilities that could be used to host various events. The project can be traced back to 1988 when the initial phases of construction were completed. Originally referred to as the Flinders Park, the project was touted to maximize the sporting potentials in the country and to help in preserving the unique cultural aspects of the citizens. Initially, the development of the park was initiated to support the growing popularity of the Australian Open and to secure the future of Melbourne as the city of choice to host major events in Australia.

The redevelopment work placed significant emphasis on the comfort of the revelers making it one of the best entertainment facilities in the whole world. The Melbourne Park redevelopment project is currently in its third stage and is estimated to cost around $271 million according to the city’s estimated figures. The new redeveloped multi-purpose 5,000 seat capacity complex will also include an arena, a central terrace, a state-of-the-art elevated outdoor public lounge, and an exceptional center. The complex will also include various broadcast studios and logistics hub among other important improvements.

The description of the project under tender by Watpac Company is subsequently stipulated. Currently, the company plans to tender the Melbourne Park Redevelopment Stage 3 project. The project will be conducted in Batman Avenue & Olympic Boulevard and is projected to cost approximately $200m according to Watpac’s tender documents. However, this cost may significantly change depending on various market dynamics (Tunstall 2006).  Melbourne Park will function as a media center for the city of Melbourne upon completion. Some of the functions that will define the company will include a central logistics hub that will also include a unique central loading dock and a public café. The center will also include an Arena with a sitting capacity of approximately 5000 people. In addition, the facility will incorporate a public concourse area, broadcast compound, a tennis façade, and a big car park. The development of Southern Precinct entries and the re-landscaping of the backyards are other important facelifts that will be conducted at the facility. The present tubular bridge linking the new central terrace will also undergo serious redevelopment and facelifts.

If awarded the tender, the company has a distinctive plan that clearly details the plan and design of the project. In particular, the project will be completed in 5 different stages with each stage taking approximately 2 months (Afzal and Lim 2013). For instance, the first stage of the project will involve the demolition of unwanted structures, scabbing and collection of relevant materials for the project. Subsequently, there will be a thorough landscaping of the Garden Square, development of a new Function and Media Centre among other minor improvements. Remarkably, the repair of the North Access Road will further facilitate a two-way traffic and pedestrian movements, especially during rush-hours. However, to successfully complete the project, the company will demolish certain structures that may significantly hinder the construction activities that will be conducted at the facility.   

Tender structure

Furthermore, it is envisaged that this project will provide the company with the much-needed market dominance in Australia upon successful completion (Austin, Baldwin and Newton, 2006). Likewise, the project will significantly boost the city of Melbourne’s social and economic activities given the company’s the ability to target and attract party-goers. According to the Melbourne city’s officials, once completed, the redeveloped facility will make it easier for fans to find their way out and to enjoy their stay in the city. Specifically, the project will provide numerous benefits to the city that will range from the expansion of the city’s oldest social infrastructure to the creation of new job opportunities that will subsequently upsurge the inflow of various economic activities. Moreover, the city estimates that the project will create approximately new 600 job opportunities during the construction processes.

The project will also stimulate Melbourne city’s urban renewal and the enhancement of livability of the city’s residents. Additionally, the Melbourne Park Redevelopment Stage 3 will attract new investment opportunities, increase the town’s ability to hold major social concerts and attract more international and domestic tourists. Increased inflow of tourists into the city will also strengthen the country’s tourism and hospitality industry with more people expected to flock the city to view one of the best sporting facility in the world. Correspondingly, the city will also experience an influx of sporting heroes and musicians who are likely to visit the city to participate in various events hosted at the redeveloped facility (Levin, Arthurson and Ziersch 2014).            

Undoubtedly, Watpac Australia is one of the leading national and civil construction and mining company in Australia and is currently based in Brisbane (WATPAC, 2018). The company which was established in 1983 has since grown both in size and scope with numerous successful projects already completed under their supervision. Watpac’s management is made up of a board of directors who are primarily responsible for the development of the company’s strategic directions and driving the company’s sustainable customer value. The management also comprises of individuals who have extensive experience and knowledge in various fields ranging from finance to construction and property development. Other members of the management team include a non-executive director who boasts of extensive experience in construction and engineering activities among other middle-level management teams.     

The company currently deals with various construction and property development activities in Australia and in other parts of the world. Other services that the company specializes I include mining services, civil infrastructure, and landscaping (WATPAC 2018). With a rich history of quality performance that spans more over three decades of positive growth and market success, Watpac Australia is currently employing over 1,000 people throughout Australia. Watpac Australia prides in its competitive advantage that it derives from operating diversified businesses and employing efficient market strategies. Moreover, the company primary objective is to deploy its prowess and unique skills towards delivering customer value and utility (Afzal, Lim and Prasad 2015).

Contract benefits, plan, and design

Watpac’s success story began immediately it was established and after a few years o massive growth, the company expanded both in scope and size. Watpac’s market growth strategy has majorly been revolving around strategic acquisitions making it possible for the company to expand its services in other parts of Australia (WATPAC 2018). For instance, in April 2013, Watpac entered into a major acquisition agreement with BESIX Group further enabling the company to expand its market dominance. Such strategic alliances and market strategies have enabled Watpac Australia to retain its unique Australian and global market dominance. The company has also been able to forge new investment networks, expertise and expanded reach to other relevant stakeholders. Indeed, the company’s rich construction capabilities and core competencies can be accredited to the quality and efficiency of its services. The firm also boasts of the depth of its local expertise and networks that have to strengthen its national and global outlook. Watpac’s key focus is on enhancing customer relationship and loyalty by facilitating the deployment of skills and ensuring delivery of value to its consumers.

The company has an impressive list of experiences and project completion rate that makes it one of the best in the industry. Westpac Australia has a rich list of experience that includes the construction of sporting complexes such as Suncorp Stadium and the Riverway Cultural Precinct located in Townsville. The company also boasts of having successfully completed the redevelopment of Gold Coast Aquatic Centre. Moreover, Watpac Australia has also successfully delivered major construction projects in other parts of the world such as the development of accommodation facilities in Singapore.   

One of Watpac Australia’s major construction breakthroughs was the development of a 34-story office tower that is located at 180 Ann Street in Brisbane. The building consists of an A-Grade commercial space and basement parking among other unique features further proving Watpac’s ability to undertake complex projects (WATPAC 2018). Today, Watpac Australia is celebrating its 30 years of successful market growth and varied achievements. The company’s primary market objective is to remain relevant and focused through effective consolidation of its activities and maximizing profits. In the long-run, the company hopes to enhance its competitive positioning and create sustainable customer value (Smith 2002). In this specific project, the company will provide a diverse building construction and supervision services during the implementation phase (WATPAC 2018).

This section comprises an excellent analysis of whether the company should undertake the final implementation of the particular tender for a project (Hsieh, Lu, and Tzeng 2004). The section presents succinct explanations of the projected profitability of the company coupled with the associated risks and rewards related to the proposed project tender. The primary objective is to ascertain the market viability of the tender and whether the company will profit from such engagements (Markus 2009). Watpac Construction Company has applied to oversee the redevelopment of Melbourne City Park.  To accurately establish the rationale for taking this tender, the company must assess the associated financial liability that will include a comprehensive evaluation of the risks and benefit (Hackett and Statham 2016). Such analyses will enable the company to ascertain whether they can successfully deliver the specified project and whether they can fulfill the strict timelines ad guaranteed stipulated under the contract and tender documents (Brook 2016).  

Information on the organization

The company established that this a high-risk project that required comparatively high strategic plans based on the level of complexity. Moreover, the project has a mandatory delivery timeframe implying that it is a high value and sensitive case that will require the company to direct massive manpower towards the successful completion of the project (Oakley and Johnson 2011). Moreover, the company has provided a rough estimate of the net profit ratio (net profit divided by the aggregate revenue) to further ascertain the financial viability of this particular tender. The Goss profit margins and the return on the company assets will further help the company to establish the financial feasibility of this project. As such, the company will provide approximate estimates of the costs of conducting this project (Mees 2010).

The table below shows the estimated cost of successfully conducting this project. The facility is estimated to cost approximately $271. However, Watpac estimates that they can use approximately $200m to successfully complete this project. Therefore, the stipulated estimates are rough figures that the company believes are feasible.  

From the above estimates, it’s clear that while Watpac believes that this project is economically viable and that they can complete it within their stipulated budget constraint, the actual estimates are contradicted. While the city budgeted for approximately $271m to efficiently execute the project, the actual estimates stand about $266m. Therefore, Watpac’s tender estimate of over $200m will only be feasible if the city can agree to increase the funding for the project. Moreover, on environmental sustainability, this project will include certain serious impacts of the environment which will also be included as part of the overall cost of the anticipated project (Wong et al. 2015).

 While the company’s tender meets the city’s requirements and budget estimates for the maximization of available capital and human resources, serious considerations should be directed to the estimated costs and economic viability of the project. Indeed, Watpac has an excellent experience and prowess in the construction industry and deserves this project. Therefore, the company can engage the government to increase funding for the project to ensure a win-win scenario. The primary objective of any business outfit is to maximize profits and minimize loss (Bertolini, Braglia and Carmignani 2006). If Watpac will accept the tender at the current estimate of $200m, then their inherent ability to break-even will be reduced. Being in a relatively competitive business setting, the company must strive to maintain its market position and competitive advantage. Therefore, the company can convince the city’s management to consider quality above cost and to award them the contract at an approximated figure of $300m. This will enable Watpac to successfully conduct most of the above-stipulated projects and successfully break-even.

Conclusion

The report has provided a clear and concise analysis of varied information pertaining to the project. For instance, the report has provided a detailed background of the project using well-demonstrated and solid justifications of this proposal. The provided project information further includes a verifiable plan, design and contract structure of the project. Moreover, the project has given specific information on the tendering company Watpac and includes a detailed history of the firm, core competencies and capabilities. For instance, the project has established that Watpac has immense experience in the construction and civil engineering industry and this makes them uniquely qualified to successfully complete this project. In addition to the company’s capabilities and experience in undertaking large infrastructure projects, Watpac is undoubtedly qualified to execute this complex project. The report has further provided an exceptional analysis of the tender that includes costs estimates. The stipulated analysis aims at presenting a clear rationale on why Watpac should continue with the implementation of the tender. The rationale is also supported by various calculations ascertaining whether the companies will break-even among other associated risks and rewards.

References

Afzal, F. and Lim, B.T., 2013. Attitudes of Australian construction organisations towards sustainability management. Proceedings of WBC.

Afzal, F., Lim, B. and Prasad, D., 2015. STRATEGIC DIRECTIONS OF AUSTRALIAN CONSTRUCTION COMPANIES TOWARDS SUSTAINABILITY.

Austin, S., Baldwin, A. and Newton, A., 2006. A data flow model to plan and manage the building design process. Journal of Engeering Design, 7(1), pp.3-25.

Bertolini, M., Braglia, M. and Carmignani, G., 2006. Application of the AHP methodology in making a proposal for a public work contract. International Journal of Project Management, 24(5), pp.422-430.

Brook, M., 2016. Estimating and tendering for construction work. Routledge.

Cooke, B. and Williams, P., 2013. Construction planning, programming and control. John Wiley & Sons.

Hackett, M. and Statham, G. eds., 2016. The aqua group guide to procurement, tendering and contract administration. John Wiley & Sons.

Hsieh, T.Y., Lu, S.T. and Tzeng, G.H., 2004. Fuzzy MCDM approach for planning and design tenders selection in public office buildings. International journal of project management, 22(7), pp.573-584.

Illingworth, J.R., 2014. Construction methods and planning. CRC Press.

Levin, I., Arthurson, K. and Ziersch, A., 2014. Social mix and the role of design: Competing interests in the Carlton Public Housing Estate Redevelopment, Melbourne. Cities, 40, pp.23-31.

Markus, T.A., 2009. The role of building performance measurement and appraisal in design method. Design methods in Architecture, pp.10

Order an Essay Now & Get These Features For Free:

Turnitin Report

Formatting

Title Page

Citation

Outline

Place an Order