Rockhampton Ring Road project tenders come back at $1.7 billion

A perfect storm of surging construction supply costs and decisions around employee agreements has contributed to tender quotes for the Rockhampton Ring Road project blowing out by $700 million.

Rockhampton Ring Road - Alexandra Street overpass. PIC: TMR

Exclusive: A perfect storm of surging construction supply costs and decisions around employee agreements has contributed to tender quotes for the Rockhampton Ring Road project blowing out by $700 million.

A source close to the project flagged the alarming disparity with The Morning Bulletin, which understands the Queensland Government has received major tender submissions for the forecast five-year project, due to begin construction in January 2023.

The trusted source revealed the lowest tender had come in at $1.7 billion – significantly above the $1.065bn budget for the project.

The project is jointly funded by the Australian and Queensland governments, with a federal contribution of $852 million and state, $213 million.

The 14.7km ring road project, the biggest infrastructure project to yet be delivered in Central Queensland, will support about 783 direct jobs.

It has been divided into two separate parts, being the South and North packages.

While contracts have not been officially announced by the State Government, a number of contractors were in attendance at an information briefing in July – including two contractors that were short-listed earlier this year to progress through the development phase of the Collaborative Project Agreement, tendering for the construction of the project.

A map of the Rockhampton Ring Road from the Department of Transport and Main Roads.

Joint venture Acciona and Fulton Hogan was one of the major players bidding for the South package – the section between the new Capricorn Highway intersection and Rockhampton Ridgelands Road.

Joint venture BMD Group and Bielby was also one of the key groups bidding for the North project – the Ridgelands Road overpass to the Yeppoon Road intersection with the Bruce Highway, including a new 80 metre span Fitzroy River bridge.

Rockhampton Ring Road – New Fitzroy River bridge. PIC: TMR

In late August, Rockhampton MP Barry O’Rourke said the government was committed to maximising opportunities for local suppliers and services to gain work on the project and tenderers would need to comply with the Queensland Charter for Local Content.

“Construction tendering for Rockhampton Ring Road will be in line with the Queensland Procurement Policy 2017. All submitted offers will be subject to the local benefits test as part of the evaluation criteria,” Mr O’Rourke said in August.

“Due to the significant investment in regional Queensland, tenderers will also need to comply with the Queensland Charter for Local Content.

“They will be required to submit a statement of intent indicating how the following principles of the charter would be addressed: full, fair and reasonable opportunity; value for money; regional and industry development; transparency of process.”

TMR partnered with the Department of State Development, Infrastructure, Local Government and Planning to establish an Industry Capability Network (ICN) (industry register) providing a platform for suppliers and sub-contractors to express interest in working on the project.

According to the ICN Gateway website, all ‘full scope’ expressions of interest for the Rockhampton Ring Road - plan, preserve and construct, close on January 7, 2023.

Mr O’Rourke and Keppel MP Brittany Lauga have been approached for further comment.