Lincoln University has confirmed there has been a delay to the construction of the joint facility with AgResearch.
The decision to delay construction was approved by the Lincoln University Council and AgResearch Board in late April following a proposal to return to market for further build quotes. Early and enabling works continue in the meantime. Tenders close in late July and it is anticipated that a main contractor will be appointed by the end of August.
Murray Strong, Chairman of the Partnership Board made the following statement on Friday 1 June:
The Joint Facility project has been managed under a two-stage Early Contractor Involvement (ECI) procurement method. The ECI process brought together a construction contractor, architects, designers, and specialist sub-contractors, such as façade fabrication and steel suppliers.
This ECI approach has allowed for the construction contractor to undertake early and enabling work (site clearance) and to work with the client on the full design of the Joint Facility. Both the early and enabling works, and the building’s design are now completed.
Through this process, the Lincoln University AgResearch Joint Facility Limited Partnership Board sought a Main Contract Tender price for construction which came in higher than expected.
The Board felt strongly that this initial tender price did not provide appropriate value to the project’s shareholders, (Lincoln University and AgResearch), and the Government.
With a completed design, the Lincoln University AgResearch Joint Facility Limited Partnership Board has been able to undertake further value engineering work (refinement of quantity survey estimates) and to realise some significant cost savings as a result.
In March, the Board initiated a new competitive tendering process for the main construction phase (‘Build-only”), and this process is currently underway.
The Joint Facility Partnership Board now expects to receive initial tender prices in a competitive process by 20 July, and will make its final recommendation on a preferred contractor to shareholders, in August.
This will enable the Implementation Business Case to be submitted to the Government with a preferred contractor and contract price.
The Lincoln University AgResearch Joint Facility project remains within its capital budget.
While this sort of delay is always frustrating, it is not unusual in large-scale construction projects like this. This process has taken place during a period of significant recent impacts on the construction sector[1] and with the pricing of risk robustly negotiated between the parties.
Construction of the 27,000 square metre, $206 million Lincoln University and AgResearch education and research centre at the Lincoln campus will then start later this year and, when complete, will be the largest land-based sciences research centre in the southern hemisphere.