Raine Square Turnaround

Project Description

Raine Square is a 23-floor mixed use development with 43,000 sqm of office space, three floors of retail, and three levels of basement parking, totaling in excess of 60,000 sqm of built area. It includes a heritage component and an underground link to the Perth Train Station across William Street.

Our Role

The project was initially solely developer-managed, but suffered a serious setback in early 2010 when the main contractor defaulted and work stopped for a number of months and the structure remained incomplete. NS Projects was then engaged to negotiate with a new contractor and restart the project. Working with the developer’s team, NS Projects lead negotiations and executed a contract within four months of appointment, which is an excellent outcome considering a price review was undertaken (resulting in a 10% reduction in price, in a difficult negotiating position) and the contract terms were negotiated from a standing start.

NS Projects continued as project manager and superintendent for the crucial start-up phase when most of the legacy contractual issues were addressed. After three months, the financiers brought receivers in (due to external factors) and retained NS Projects as superintendent reporting directly to their managers.

Challenges Overcome

NS Projects built a close working relationship with the contractor. We had full control of the contractual administration and issues arising from the changeover of contractors, being responsible for information flow, certification, variations and programme issues.

A very difficult and fluid situation was normalised and confidence in the outcome regained. In the superintendent’s role a focus on key issues benefited the project:

  • Making provisions for the anticipated costs latent in the partially completed building.
  • Keeping short accounts of variations, being prepared to determine values and challenge costs.
  • Seeking savings and preventing scope creep.
  • Monitoring resources and progress to obviate spurious claims.
  • Ensuring that contract conditions are met.
  • Making trade-offs where multiple objective must be met.
  • Adjudicating extension claims fairly and within time frames, for an acceptable outcome.
  • Minimising the risk of major dispute.
  • Keeping the confidence of the contractor in an impartial adjudication, while looking after client interests.

Project Details

  • Name: Raine Square Turnaround
  • Type: Retail
  • Client: Westgem Investments
  • Date: 2007 to 2011
  • Role: Project Management & Superintendent Services
  • Value: $330 million

Key Outcomes

Through dedicated and transparent project management, NS Projects was able to overcome the many challenges presented by a distressed project.