The Department of Transport and Main Roads (TMR) identified the need to rehabilitate Innisfail - Japoon Road (627) as part of the 2018/2019 Tactical Asset Management Plan (TAMP) with the project to be funded under the Maintenance, Preservation and Environment (MPE) Investment Program. The MPE Investment Program focuses on the long-term sustainability of transport infrastructure assets by maintaining economic efficiency and road safety.
SMEC were commissioned by TMR to undertake the Development Phase Stage 2 Design (S2D), from which SMEC subsequently engaged Geleon to prepare the P90 Total Project Cost Estimate for the works in accordance with Transport and Main Roads (TMR) Project Cost Estimating Manual.
A cost estimate utilising a first principles methodology was prepared that determined Construction Contractor's Costs, Principal's Costs, considered Planned and Unplanned Risks, Escalation and utilised @Risk software to perform a Monte Carlo simulation to ascertain the Total Project Cost at 50 and 90-percentile likelihoods. Estimated costs were then separated into Capex and Opex cost elements in accordance with Section 8 - Work Breakdown Summaries of the Transport Infrastructure Cost Classification Guide for Recording Expenditure - Implementation Guide for the TMR Infrastructure Asset Accounting Policy and Cost Breakdown Structures.