Service Supply Agreements
The project focuses on negotiating extensive services supply agreements for a new 70-storey integrated resort featuring a six-star hotel, casino, apartments, retail outlets, and restaurants located in Sydney’s Barangaroo South.
Service Supply Agreements
Engineering Design Manager, Engineering Advisor and Project Manager.
Project:
Role:
Crown Resorts
Fender Katsalidis, ADP Consulting, 4D Structures
Client:
Crown Resorts
Partners:
Summary
The project focuses on negotiating extensive services supply agreements for a new 70-storey integrated resort featuring a six-star hotel, casino, apartments, retail outlets, and restaurants located in Sydney’s Barangaroo South.
This involves the commercial negotiation of utilities contracts for major infrastructure site services, including thermal supply agreements for chilled water, high-voltage network connection agreements, and recycled water systems. A thorough assessment of energy consumption and water usage models is conducted to compare costs, while future expenses are evaluated against similar costs at Crown’s Melbourne and Perth sites, factoring in maintenance, capital upgrade costs, and ongoing running costs. Sensitivity and financial analysis of various proposed scenarios are integral to the process, as is negotiating long-term rates that encompass availability, consumption, maintenance, and sinking fund contributions.
The project also entails benchmarking against equivalent agreements both locally and globally and establishing service standards, including penalty mechanisms and uptime requirements. Challenges include managing lengthy supply agreements with potential long-term implications, data gathering and comparative assessments, a small client-side team versus a large vendor team, and the complexity of le legal contracts combined with technical engineering requirements.
Works Included
Commercial negotiation of utilities contracts for major infrastructure site services including Thermal supply agreements ( Chilled water),
HV Network ( connection agreements and ongoing consumption ) and recycled water systems
Assessment of consumptions via energy models and water consumption models for comparative purposes to assess costs
Assessment of future costs against comparable costs for Crowns Melbourne and Perth sites including maintenance costs, capital upgrade costs (including sinking funds)
and ongoing running costs
Sensitivity and Financial analysis of various proposed scenarios
Negotiating rates to determine long term costs including availability, consumption, maintenance and sinking fund
Benchmarking against equivalent agreements locally and globally
Negotiating service standards including penalty mechanisms and uptime requirements
CHALLENGES
Lengthy supply agreements with long term upside or downside depending on the successful negotiated outcome of contracts
Data gathering and comparative assessment
Small client side team versus large vendor team
Complicated legal contracts combined with technical engineering requirements
