APA Group had nominated a modified early contractor involvement (ECI) model, breaking the works on the Bonaparte Gas Pipeline into two components:

* Stage 1: to carry out site and geotechnical investigations to develop the detailed construction plan and precise costing; and, * Stage 2: the construction itself.

Initially four contractors, including AJ Lucas, were pre-qualified to bid for Stage 1. AJ Lucas won, and went on to work with APA.

The early work was invaluable in both building a solid working relationship and in jointly identifying all the project’s challenges, then working together to solve them. A key part was to identify the project’s risks and determining who should bear that risk. The Stage 1 process was conducted ‘open book’, with AJ Lucas reimbursed accordingly.

At the conclusion of Stage 1, the Lucas risk-adjusted cost was finalised and Stage 2 was awarded as a lump-sum contract on the basis developed. APA was scrupulous in maintaining the integrity of the contractor selection, with a probity auditor an integral part of the process.

Safety

The Northern Territory’s wet season makes the Daly River, which the pipeline crosses, impassable for six months every year, becoming as much as 4 km wide. The wet season would stop all work for around six months, so a tight schedule was developed to fit all construction into the dry season from April to November of 2008.

The project’s key risks were identified in the hazard identification process during pre-construction. Many were, again, caused or increased by the remote location. A safety manager, two safety officers, two medics, two ambulances and a rescue vehicle were on the project full time as well as medical centres in each camp and a medivac contract with a helicopter supplier.

AJ Lucas conducted 800 inductions and 450 toolbox talks with 3,170 attendees to ensure risks and appropriate safety protocols were understood by employees and subcontractors.

The remote location, with camps as much as four and a half hours drive from Darwin meant absolutely every eventuality had to be foreseen to keep equipment and crews productive. An overlooked spare could mean days of delay.

Road travel was a significant risk. The area’s roads are relatively narrow and often unsealed, making dust a major obstacle to visibility. A road usage plan, an agreed road upgrade with the Northern Territory Government, public communication, special signage and an 80 km/h speed limit west of the Daly River were all instituted to mitigate the risk. Overall, with over 570,300 man-hours there were two lost time injuries for a lost time injury frequency rate of 3.5.

Cultural heritage

Of the pipeline route, 130 km is located in Aboriginal freehold land, so early engagement with the community was vital to the project’s success.

APA and the Northern Land Council (NLC) negotiated a project agreement that included: an NLC liaison officer assigned to the project to co-ordinate different groups; careful identification of any sacred sites to define the final 30 m wide right of way within the 100 m pipeline corridor; pre-agreed use of access tracks, water sources and gravel pits; and, a tightly managed photographic ID system for all project employees, contractors and visitors.

APA’s work upfront and the close co-ordination throughout construction paid off, with no time lost due to cultural heritage issues.

Environmental

A construction environmental management plan was developed along with a public environmental report.

The plan incorporated the following to reduce risks:

* Horizontal directional drilling crossings of major waterways; * Maximum of 60 km of open trench at any time; * Trained fauna handlers to clear the open trench daily; and, * Trench plugs and ramps to assist with fauna removal.

River crossings

Three major waterways were crossed by HDD using AJ Lucas equipment and Powercrete coated pipe. These included Green Ant Creek (1,536 m), Daly River (400 m) and Tom Turners (275 m). The crossings were completed on schedule and without defects. The only out-of-the-ordinary aspect was a licensed crocodile hunter standing guard on the bank to prevent any altercations!

Success

The project was completed on time and just ahead of the wet season, with the Daly River crossing closed the day after our last truck left. Industrial relations and safety risks and issues were successfully addressed and excellent environmental and cultural heritage outcomes were achieved. AJ Lucas believes that the ECI contract model was successful.