Changing the way we deliver major road projects
Future road upgrades will be progressively awarded to pre-qualified contractors using a new Program Delivery Approach (PDA) model, with projects awarded based on the contractors’ capability, capacity, past performance and ability to deliver value-for-money solutions.
Construction and design companies were invited to join the MRPV Construction and Design Panels to fast track procurement and get projects shovel ready sooner and there is an ongoing opportunity for new contractors and designers to join these panels.
The PDA approach features elements of the alliance and Design and Construct (D&C) contracts and will help us to get the best outcomes for our projects.
We’re have made changes to:
- create a more sustainable contractor and design market
- reduce procurement time and costs
- better integrate project planning and project delivery
- improve collaboration and provide financial and future project opportunities.
Benefits for the construction market include:
- sustainable supply opportunities for small, medium and large companies
- long-term competition
- improved cost certainty
- better allocation of risk pricing
- streamlined procurement processes.
How will projects be awarded?
Projects will be awarded to contractors that are on one of five panels forming the MRPV Construction Panel. These panels will allow contractors to compete for projects with a size and complexity that matches their capability at both individual and organisational levels.
Once selected, a contractor will follow a two-staged delivery model under the PDA, entering into a Project Development Phase to determine the scope and value of the project, and then the Project Delivery Phase once contracts are executed.
How will designers be appointed?
A designer can be engaged directly by MRPV, however is most commonly engaged by the contractor in a sub-contract agreement as is the case in a classic D&C model. The appointment is made after the award of the project to a contractor and before the start of the Project Development Phase in order to work collaboratively with the contractor and MRPV.
How does the contractor get paid?
Payment will be through an Incentivised Target Cost (ITC) payment mechanism, which reimburses direct costs and includes cost and non-cost incentives.
How does the designer get paid?
The primary method of payment will be through an ITC payment mechanism, which reimburses direct costs and includes cost and non-cost incentives.
What are the MRPV Construction and Design Panels?
The panel system aligns the capability and skills of eligible contractors and designers with the complexity and value of our projects. Both the MRPV Construction and Design Panels comprise multiple categories of panel.
The MRPV Construction Panel has four construction categories of panel (panels 1-4) and the MRPV Design Panel has two categories of panel (panels 1 and 2). Categories for each of these panels are based on project value and complexity.
The MRPV Construction Panel also has a fifth category of panel (panel 5) which has been established for specialist providers for activities such as utility or bridge rehabilitation works.
How do I join a panel?
MRPV will assess applications to join the MRPV Construction or Design Panels on an annual basis, with the next annual intake to start the week commencing 19 September 2022. If your organisation is interested in joining a panel, please get in touch via the email address below and further details will be provided.
Are there any prequalification requirements to join the MRPV Construction and Design Panels?
Yes, there are certain prequalification requirements an applicant must satisfy in order to be eligible to be appointed to a category of panel on either the MRPV Construction or Design Panels.
To be eligible to apply to join the MRPV Construction Panel and to be allocated to one of panels 1-4, you must be registered under the VicRoads Prequalification Scheme for the minimum Road and Bridge Construction levels as follows:
- Road – R3, or
- Bridge – B2
If you are seeking to join panel 5, the specialist services panel, you are required to be registered on the VicRoads Prequalification Scheme and are required to demonstrate capability and experience in specialist work and services (for example utilities, bridge rehabilitation).
To be eligible to apply to join the MRPV Design Panel and to be allocated to panel 1 or 2, you must be registered under the VicRoads Prequalification Scheme for the minimum Road and Bridge Design levels as follows:
- Road Design – Freeway (FD), and
- Hydrologic and Hydraulic Design – H&H – Complex (CH); and
- Bridge Design – Structures-Complex (CS)
Who is on the MRPV Construction and Design Panels?
The contractors and designers on the MRPV Construction and Design Panels are detailed below and will be reviewed on an annual basis
MRPV Construction Panel
Value > $300m High Complexity
Value $400m – $100m High – Moderate Complexity
Value $150m – $25m Moderate Complexity
Value < $50m Low Complexity
*Note – These parties are provisional appointments subject to executing the Program Participation Agreement to join the MRPV Construction Panel.
MRPV Design Panel
Value > $75m and/or
Moderate to High Complexity
Value < $125m and/or
Low to Moderate Complexity
BG & E
Kellogg Brown & Root
Pitt & Sherry
Need more information?
For more information please email the Panel Director at MRPV.ProgramApproach@roadprojects.vic.gov.au