Design And Technical Construction Team Construction Essay

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The outcomes of the initial financial forecasts and capital cost estimates indicates that the development of a Perth multipurpose stadium, will be the only stadium structure which has the potential to fund its day to day working cost and venue expenses, it have the ability to cover its life cycle maintenance cost and meet all essential necessity. Construction of stadium will also benefit other sports clubs and stadium in Perth; average attendance for west coast eagles is only 40,744 which will be increased by 36.7%, the average attendance for FFC matches is projected to increase by 36.7% at the 60,000 seat major stadium. (Perth stadium 2007), Rugby WA is forecast to derive potential additional revenues of $1.7m in an average year from playing at the 60,000 seat major stadium. The ARU will significantly benefit from hosting its annual Rugby Test match at the 60,000 seat major stadium particularly due to the significant capacity increase of corporate facilities and general admission, public seating compared to Subiaco Oval. (Perth stadium 2007)

It is recommended the government of Western Australia should proceed with the construction of new multi-purpose stadium option 1 with 60000 seats to host all AFL, cricket international, rugby and soccer events. The attendance in these events will outgrow and this stadium will be the solution for that. In recommendation this stadium will help the Perth economy to grow and community to come to gather and be proud of an iconic infrastructure in Perth, this project will help Perth to make a place in sports world.

Task 1.2 Cost Benefit Analysis


There are many great texts on the subject of cost benefit analysis, primarily because it falls within the scope of several disciplines, including management, accounting, project management and of course construction management. There are various definitions provided and explanations given for the technique of CBA.

Seeley (1996,p470) Describes the aim of CBA as "setting out factors which need to be taken into account in making economics decisions". Ferry and Brandon (1984, p12) describes CBA as an attempt to "quantify all factors including the various social benefits and disadvantages" and "suggests that it has been used widely "in connection with traffic c and airport schemes and with major projects in construction". The process is not simple and as Manser (1994, p206) suggests "in practise it can be a complex, demanding and expensive exercise"

CBA is a discounted cash flow concept and it uses the net present value model. Cost Benefit Analysis it's more popular to calculate the expenses and revenue distinctly rather than to use a net income back (Briscoe, 1991, p224). Cost Benefit Analysis establishes the appropriate costs and benefits resulting from the development and using discounting methods bring them all to a net present value. Once net present value is viewed against the sum of the benefits, where the benefits increase the costs then the project is deemed acceptable.

Calculation of CBA

It's assumed that Perth stadium will be completed in five years' time (Perth stadia 2012) at cost of $758,130,000 from table 1.0, page 2. Inflation in the interim period is estimated to be 3%.

Construction cost of 2012 is


it assumed project will start on 2014 and complete in 2018

Construction cost for 6 year

(Present value factor 3%)

758.13 x 0.8375 = 634.94

Present value = $634.94million

Stadium will not start to provide benefits until its completed and events take place in the stadium. It's assumed the stadium will start making benefits in year 2019 (Perth stadia 2012).


AS before, present value = $634.94 million


The total value of the benefit is $79.70 million per year (calculated in table 1.0).

Present value

Discount $79.70million in year 7(2019) = 0.8131 x 79.70


Discount $79.70million in year 8(2020) =0.7894 x 79.70


Discount $79.70million in year 9(2021) =0.7664 x 79.70


Discount $79.70million in year 10(2022) = 0.7441 x 79.70


Discount $79.70million in year 11(2023) =0.7224 x 79.70


Discount $79.70million in year 12(2024) =0.7014 x 79.70


Discount $79.70million in year 13(2025) =0.6810 x 79.70


Discount $79.70million in year 14(2026) =0.6611 x 79.70


Discount $79.70million in year 15(2027) =0.6419 x 79.70


Discount $79.70million in year 16(2028 =0.6232 x 79.70


Discount $79.70million in year 17(2029) =0.6050 x 79.70


Discount $79.70million in year 18(2030) =0.5874 x 79.70


Total present value


Total present value = $664.41million


Based on a 18 year timespan

Costs = $634.94 million, Benefits = $664.41million Project is accepted


By building a sustainable stadium is a big achievement for the community and pride of Western Australia, Perth stadium will place Western Australia on the map as the most advance and a new generation sporting facility, features like moveable seating, a network of underground service tunnels and nature sensitive roof. This stadium is not just design for AFL all other majors sports of Australia are also going to be part of this stadium. This will be a place for the community were the can work, enjoy, meet their fans and celebrate with their friends and family together

Big merchandise invests money in the projects like this because they believe that the new stadium can be used as an iconic marketing tool for their businesses. By building a project like Perth stadium will defiantly help to boost the economy of Western Australia. The first way of achieving this is by creating more jobs in the market. New facility like stadium is usually bigger and better than the old one and requires more employees. Jobs are created in the surrounding areas of the new stadium, by building more local shops as demand for goods goes high, restaurants, motels and also in the transport industry.

By building Perth stadium it will help in the growth of tourism in Western Australia. The stadium will not just attract the sports team and people from local community but also national and international. This will help and show western Australian culture to the world. Perth is very isolated city in the country and the world, by hosting major sporting events it will generate pride and excitement in the community. Perth has missed out on major events took place in Australia like just because of no world class stadium.

1.3 Value Management Analysis


"Value Management is a organized facilitated method in which conclusion, investors, technical experts and others people collaboratively to bring about worth based results in organizations, procedures, products and developments. It is about illuminating and filling customer needs, about generating concepts as to how a organization can best do its job at suitable stages of quality and presentation.(Global value management 2011)

Process of value management is consists of five steps:


In this process members explore the current situation the project operates within, distinguish facts from ideas. How to achieve more from the stadium while minimising the cost as well. To identify issues associated with the project, is the stadium value for money, is the project green star, benefits to the community. Prior to commencing the value management study need to have the information on the stadium; capacity of the stadium, location where it is going to be build, is their enough capital to build the stadium.

Function Analysis

During this process members identify which are the main issues and what are the vital tasks that the project must provide. In this process the key stakeholders for the stadium may also be identified. In this process the participants share their knowledge and build on their understanding of the project, the problems challenging the project and important outcomes to safeguard a positive outcome. (Issues like transportation, improve access to the site, reduce congestion and create alternatives)

Creativity phase

Separately members generate ideas to abolish unwanted functions, deliver vital tasks and deal with the important issues that had been acknowledged. (Issues like giving Alternative ideas for accomplishing the basic functions; car pool incentives; no underground car park, increase in public transport for the stadium, more transport for big event days and late night events.


In this phase participants evaluated the planning that have been created subjectively on the basis of:

If the planning for particular task is good then further planning is done to make it better at this workshop.

If the planning for the tasks is good but needs more work outside this workshop.

As there is no car park in the stadium it will reduce congestion in the area, as a result its good planning but needs further planning for ease of people coming to the stadium on event days.


This is the final stage of value management. In this phase participants use the ideas generated in the third phase to improve strategies and action ideas to improve the project. The sub-groups are encouraged to recognize time lines, duties and accountabilities as well as give attention to procedure and sustainability of the stadium. In this participants evaluate the work done by small groups in planning of the stadium. The positive and negative aspects of the proposal are noted, as what are the dangers in this project or are there any potential pitfalls in the project and any other planning can be done to improve the current planning or address concerns.

Stakeholders of Perth stadium

Consultants have involved a wide range of stakeholder groups in the study (Perth stadium 2012). The consultation have involved major sports codes to recognize and consider their design necessities for a new stadium and also their view on the possible upcoming governance and administration of main stadium

Key stakeholder

Top management

Top management of multipurpose stadium includes "president of the company, vice president, directors, division managers and the corporate operating committee". Their duties;

To direct the strategy, Expansion of the project and Employing of best staff to carry out the task.

Progress in-depth procedures and chief milestones that essentially are accepted by topmost administration during the strategy phase of the project.

topmost administration connected with the project for their information reporting wants

Keep the lower management informed of project dangers and possible impacts at all times

Project manager

Is often appointed by the top management, His duties are to ensure the project is started against a plan. Confirms everybody is mindful of their role and have settled to their tasks. Run regular conferences with team members and other involved groups.

Design and technical construction team

Surveyors, architects, civil engineers , fire protection engineers, mechanical engineers, structural engineers, electrical engineers, their duties are to complete design of the project and complete the project till the end, according to the plan and has been decide by the top level management.

Quantity management (WT partnership)

Quantity surveyors prepare bills of quantities for the tender stage.


Responsible for providing work on time for main contractor

Financial management

Banks, loaners, bookkeepers, and cost engineers are members in generating an overall plan for the financial organization of the project.

State Government Agencies

Department of Premier and Cabinet, Department of Housing and Works, Department of Planning and Infrastructure, Department of Treasury and Finance, Main Roads Western Australia, Public Transport Authority, East Perth Redevelopment Authority and Fire and Emergency Services.

Local Sports Association / Clubs / Teams

Football West, Fremantle Football Club, Perth Glory, Royal Agricultural Society, Rugby WA, West Coast Eagles, Western Australian Cricket Association. Responsible for event organisation and helping the construction team with best possible design for stadium

Western power

The biggest electricity organisation in Western Australia. Providing enough electricity for smooth running of the project.

2.0 Executive Summary of ESD

The raise of sustainable design, built on the need to save energy, decrease emissions, and respect the earth, has significantly influenced the way we think about building. Perth Stadium is going to be qualified and serve as sign of sustainability. The plan and structure of the Stadium will incorporate values of Environmentally Sustainable Development. This will suitably integrate environmentally responsible resources and developments at the time of building and to reduce energy intake and adverse effects on the surroundings in both construction and Procedure which are financially viable.

Most of the Australians live work and play in cities. Home to more than three quarters of our people, our metropolises also account for 80% of service and GDP. Our cities are fronting unparalleled burdens on their transport, utility and social organization, as well as population and demographic shifts and climate change. The way our cities are planned has an enormous impact on our economy, our wellbeing and our environment. Sustainability considerations will have significant implications for the design and operation of Perth stadium through improved public transport networks, management of storm water and sewerage systems, and the conservation of energy and water. Perth stadium will be built in sustainable environment, from project design to operating asset.

At the Design stage assessment of the sustainability of design and planning for construction will be done.

At the Built stage measure sustainability performance during construction and constructed infrastructure assets.

At the Operation stage measured sustainability performance of operating infrastructure assets.( Sustainable planning and development. 2011)

Environmental issues

Soil issues

The information about Burswood peninsula site has been insufficient, this area has been restricted along its western edge by Swan River and as such there is substantial pressure put on reducing all adverse effects of construction on the site. The site was before a set of islands, parted from the mainland by a river, year ago it was used as landfill by the council, with several nefarious unwanted including manufacturing, domestic, sewerage, and asbestos to name but a few.

Type of soil on Burswood peninsula

The soil type in this area is acid sulphate soils which occur naturally and hold iron sulphide minerals that produce acid when uncovered to oxygen. This is injurious to human being, faunas, and the natural and constructed surroundings. The corrosion process can also discharge substantial metals in the surroundings.

Water consumption issues

Western Australia has one of the strongest laws on water usage in the country. The water demand for such big project like this going to be very high, substitute has to be found for sustainable development it just can't depend on water supply by Water Corporation. According to the Australian Agency of Records, families use only 13%, matched with 28% for manufacturing, and 40% for cultivation. While family use is not likely to increase significantly in next few years and common people have to pay the price for high usage of water every year as water bill keeps going up. Water limitations have been active in numerous Western Australian cities when poor rainfall has led to water lacks, in the summer of 1977-1978, Perth was subject to a full sprinkler ban.(West Australian 1998)

Co2 emission during the construction

In the construction industry the two main sources participating in greenhouse gas emission is burning of fossil fuels mainly from construction equipment and fuel used to produce parched electricity." U.S. Environmental Protection Agency" tell us in the figures how much Co2 is produced from the combustion of fossil fuels and purchased electricity in construction industry in U.S year 2007 fossil fuel combustion 100 million metric tons 76% and purchased electricity 31 million metric tons 24%. As Australia is being very strict on carbon emission and for sustainable development steps should be taken to lower the carbon emission. (Environment protection agency 2009)

High consumption of electricity

Electricity demand to run Perth stadium is going to be very high, the main source of electricity supplied in Perth is by western power already residents of Perth are paying high electricity rates than any other state of Australia because of high demand and low production rate. To cope with this problem stadium have to find alternatives for electricity.

Wastage of material during the construction stage

In 2004-05 Construction waste generation in Australia was 15.1 million tonnes, The contribution that the re-use and recycling industry can make to lower the embodied impacts of buildings is significant. For the sustainable construction of Perth stadium recycling of material will play key role in sustainable development.( Australian Waste Industry, 2008)

(The Blue Book-Australian Waste Industry, 2008, p. 8)

Environmental issues addressed

Using solar panels

Installing solar panels in the stadium decrease energy charges without negotiating quality of performance, decrease air pollution, deliver a substantial return on asset, and have a long product life and reduced maintenance.

An example on "Bern's Stade" stadium in Switzerland is not just like other stadiums. Home to workshops, workplaces and cultural events, it also has the biggest solar roof of any sports field in the world. Which produce 1.3 million kw/h of energy a year, sufficient for 400 homes, in today's time it is producing around 2.5miilon Kw out of which 2% is used and rest is sold. (Swiss info 2009)

Solar power is much more expensive to install than conventional energy, but it represent a unique alternative to fossil fuels. "It is a renewable power with massive prospective and a lot of study is being completed into how to shrink the price."

Using Geothermal energy

The "green image" of the geothermal presentations is strengthened also by the engineering's good principles and performance. Straight use of geothermal energy for applications, such as showering and bathing, space warming, and greenhouse warming, is also on the escalation across the world.

Geothermal energy which is used in challenge stadium in Perth is a magnificent model of green star building in Australia, Challenge Stadium, and an outdoor aquatic centre. It analyses the sustainability characteristics, the structure of which underway in 2003 and developed completely active in 2005, from the opinion of the environmentally friendly, cheap to run and social welfares it brings to the public.

The Challenge Geothermal plan is said to as a low temperature geothermal heat converter structure. In essence, the structure works by extracting ~43°C water from ground, running this water through Vanadium heat converter, then re-injecting the air-conditioned water (~35°C) to the same aquifer so as to sustain a neutral water equilibrium.

Benefits of geothermal

Decrease our requirement on fossil fuels, decrease the CO2 release in the air. The gas usage for Challenge Stadium since 2001 and 2007 a severe fall to only a fraction of the original sums from the time when the accomplishment of the project in late 2004. Subsequently, the project decreases greenhouse co2 release by approx. 1300 t CO2 per year.

Practise of green construction (co2 emission from machinery operation)

In construction of big project like Perth stadium will create co2 emission in operation of machinery for the work to be done. MetLife Stadium construction in New York City 2007 is a magnificent example of green construction practise, by using clean energy and Lower Emissions; by using of less contaminated sulphur diesel oil and diesel particulate mesh on all building gear, there was a 13% particulate resources saving with the use of ultra-low sulphur fuels; an extra 80-90% specific resources decrease as a outcome of the use of diesel particulate

Recycling and reuse of construction materials during the construction stage.

Tons of material is wasted and not reused during the construction. For the sustainable development of Perth stadium recycling of material will be initial For example; in construction of Wembley stadium in London2012, overall 2,314t of waste from the time when the start of erection, reusing 82% of the entire unwanted material generated through construction process. Roughly 200tones of bitumen had been used and about two thousand tone of concrete had been used on the site.

In the same way recycling of material during the construction should be practised in construction of Perth stadium. This will lead to sustainable development during the construction stage.

Water management

The water demand for such big project like this going to be very high to meet the demand and to use the water supply in efficient way is selection and installing of equipment's:

Variety of artificial lawn as opposite to normal grass for ground playing saving of tons of water every year then to normal grass field.

Use of dry urinals through the males washrooms in stadium.

Low-flush toilets in restrooms

low-flow showerheads

Rain water storage tank should be used on site

Water recycling plant should be used on site.

Stormwater management

Spongy pavement, Crumpled stonework solid should be used in lieu of plantings, letting water from rain boost groundwater and in that way dropping rain water flow into the delicate neighbouring environmental zone.

Energy Management

power efficient Star compliance reduction gear for warming chilling and airing methods and lights, which are energy efficient , decrease electricity price without negotiating quality of performance, lessen air contamination, deliver a noteworthy profit on investment

•Computerized lights controller for all sporting areas.

•use of glazing windows for New Stadium will help 56% less transmitting destructive UV lights, it also work as insulator.

Recycling waste during the events:

•Fit recycling containers in the area.

•Distinct all unwanted paper goods and cardboard on site

•Reuse wood pallets.

•Reusing of cooking oils as bio fuels and giving it to the recycling companies,

3.0Expression of Interest

Perth Major Stadium august 2012

EOI Number……12/54…………………………………………………………………………………….


Address for Delivery……………………………………………………………………………

Email or facsimile copies will not be accepted






ABN/GST Status ……………………… ACN (if any) …………………………………………

Telephone No: …………………………… Facsimile No: …………………………………….

E-mail (if any): ……………………………………………………………………………………


I/We agree that I am/We are bound by, and will comply with this Expression of Interest and its associated schedules, attachments, all in accordance with the Conditions of Responding contained in this Expression of Interest signed and completed. I/We agree that there shall be no cost payable by the Principal towards the preparation or submission of this Submission irrespective of its outcome. The submitted consideration in the price schedule (if any) is indicative only.

Dated this: __________ day of ______________________20___

Signature of authorised signatory of Respondent:________________________________________

Name of authorised signatory (BLOCK LETTERS):__________________________________________



Witness Signature: __________________________________________________________________

Name of witness: (BLOCK LETTERS):____________________________________________________




The following list has been provided to support you with your Submission. Where it is essential to deliver extra info please ensure that all papers are unmistakably marked with the relevant attachment title to assist the evaluation panel with their assessment.


Attach a copy of your company structure

"Organisation Structure"

Tick if done


details of referees, and work information of work you have done for them.


Tick if done


Are acting as a trust.

Yes / No

If Yes,

(a) name of the trust and information

(b) if no deliver the names and addresses.


Tick if done


If plan to subcontract?

Yes / No

If yes name and information about subcontractors.

Tick if done 

(b) information about the work that have to be subcontracted.


conflicts of interest likely to arise during the Contract.

Yes / No

If yes please provide the information how your compony going to deal with it.

Conflicts of Interest"

Tick if attached


Is you company owing or is in dept of more then $500,000?

Yes / No

If yes is your company able to pay it depth?

Yes / No

Please provide financial statement of your company?

"Financial Position"

Tick if attached



The Submission must be lodged by the Deadline. The Deadline for this Expression of Interest is ………………24/09/2012………………………………………………..

The Submission is to be:

(a) placed in a sealed envelope clearly endorsed with the EOI number and title as shown on the front cover of this Expression of Interest; and

(b) Delivered by hand and placed in the Tender Box at ………435………………….(by the Respondent or the Respondent's private agent) or sent through the mail to the Chief Executive Officer,………………………………………………….

Electronic mail Submissions and Submissions submitted by facsimile will not be accepted.

Respondents must ensure that they have provided two signed copies of their Submission (one to be marked "ORIGINAL" and bound, the other(s) to be marked "COPY". Any brochures or pamphlets must be attached to both the original and the copies.

All copies must be bound, and the original must be unbound and clipped (not stapled). All pages must be numbered consecutively and the Submission must include an index.


A Submission will be rejected without consideration of its merits in the event that:

(a) It is not submitted before the Deadline; or

(b) It is not submitted at the place specified in the Expression of Interest; or

(c) It may be rejected if it fails to comply with any other requirements of the Expressions of Interest


Submissions received:

(a) After the Deadline; or

(b) In a place other than that stipulated in this Expression of Interest; will not be accepted for evaluation.


Submissions must be for all of the Requirements and may be accepted by the Principal either wholly or in part. The Principal is not bound to accept and may reject any or all Submissions submitted. The acceptance of a Submission does not oblige the Principal to proceed to issuing a public tender.