Challenges of bidding on PPP projects

The Linking Melbourne Authority has released footage of the final proposals being received from the three shortlisted consortia for the East West Link project, which will be a city-shaping tunnel.

The video is a dramatic demonstration of the high bid costs that consortia can face in order to be awarded these contracts. The proposals comprise over 300,000 pages of documentation are the culmination of an intensive seven month process.

The East West Link project is an 18 kilometre cross-city road connection extending across Melbourne from the Eastern Freeway to the Western Ring Road. The cost of the project’s first stage is estimated to be between $6 billion and $8 billion, with the total cost estimated at $15 billion to $17 billion.

In an effort to encourage consortia to present bids and attract investment in this type of procurement the Government has adopted a model where it reimburses some of the costs incurred by the losing consortia in return for retaining some IP associated with the bids.

One thought on “Challenges of bidding on PPP projects

  1. Pingback: Contract award for East West Link | CONSTRUCTION LAW BLOG

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