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Troy: These projects by nature are large and complex and the traditional method of recent times is that EPCM, that engineering, procurement and construct model, which I think is not necessarily the best model.
We find that the EPC model can stifle innovation and maybe not deliver the great outcomes that clients are seeking.
We've been involved in a recent project where the developer client has taken a leap of faith and they've gone for a really integrated delivery model.
It’s kind of pretty new for the market. And I think that that's giving them greater certainty. That's combined with the split contracting, which again, gets the best out of the market and plays to the market strengths and those contractors and vendors. I think that already is starting to deliver greater certainty for the developer client and their funders and equity partners.
With the split contracting, you package to reflect the market capability and you get the best contractors and suppliers and vendors to actually respond to those packages what they're paid to their strengths. You're not putting them all in one bucket. So, I think that delivers greater certainty for the clients, greater value and often to pursue that split contracting model.
It's a changing market, so the capabilities in the market, the supply chains are changing.
And I think that market knowledge, that knowledge of the contractor's capability, really understanding the pain points on the supply chain is really important. And that knowledge will then inform your ultimate contracting model that you choose.
We've done a lot of work directly for contractors as their detailed designer and D&C type contracts, as well as client side, technical advisor roles, obviously integrated delivery team type models. So that depth of understanding is really important to inform what their capabilities are, understand what their pipeline of work is.
One thing that we've worked with some clients recently is on this integrated project management, integrated delivery partner type model. And we find that we're getting great response from some of our developer clients because we provide uplifter skills to the client team. We provide the resources and the skills needed to supplement the client team and really have a better-informed team to progress the project, to complete the planning phases, get the approvals required, consider the contracting model, going to market, getting that market interest in the project.
I think that integrated model is a little bit novel for the particular renewable energy sector, but I think it's proving to be very successful and I think it's really responding to the market and that desire for contractors and vendors to have clients that they can collaborate with, that we can manage risks together, while respecting our contract terms, of course.
I think it's a novel approach which seems to be gaining more momentum and I think it's a real positive.
Managing Director, Infrastructure Performance – Australia
