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Case study

SYDNEY METRO WEST

TUNNELS & STATION EXCAVATION

Estimated project value

$11 billion

Our involvement

2020 ongoing

Our role

Procurement and Commercial Strategy
Transaction Advisory and Management
Commercial Management
Technical and Project Management

Project Description

Sydney Metro is Australia’s biggest public transport project. A new standalone railway, this 21st century network will deliver 31 metro stations and more than 65km of new metro rail for Australia’s biggest city, revolutionising the way Sydney travels.

Sydney Metro West
Sydney Metro West which is the third metro line is an underground railway that runs along the Parramatta River with 9 new stations at Westmead, Parramatta, Sydney Olympic Park, North Strathfield, Burwood North, Five Dock, The Bays, Pyrmont and Hunter Street in the Sydney CBD.

Our Involvement

ProSquared led the development of the procurement strategy and commercial approach for the Westmead to The Bays Tunnelling Works and brought a unique 3-2-1 procurement approach for the Tunnel and Station Excavation works.

We were engaged to lead the commercial work stream for the tunnelling works on Sydney Metro West, comprising circa. $6 billion of civils works.

The scope of works was too large to let as a single package, and due to the ground conditions under the Harbour, a separate package was identified for the city section.

The remaining works, between Westmead and The Bays, was originally envisaged as a single package would not obtain sufficient interest to run a competitive procurement due to the incumbent contractors perceived advantage.

We developed the unique 3-2-1 approach to the procurement to create competitive tension and support the introduction of new entrants to the Australian and NSW infrastructure market.

The procurement strategy adopted, created competition with 3 tenderers participating in a single procurement process for two contract packages:

  • Central Tunnelling Package: The Bays to Sydney Olympic Park
  • Western Tunnelling Package: Westmead to Sydney Olympic Park

The successful tenderer for the initial Central Tunnelling Package was precluded from participating in the tender for the Western Tunnelling Package, leaving the two remaining tenderers to compete.

The proposed approach to procurement created significant interest from the market, and was successful in ensuring new entrants.