Watpac Australia: Project Development, Tender Structure, and Organization Information

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WATPAC AUSTRALIA
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Watpac Australia
Executive Summary
The report has traced the project development back to 1988 when the first phase was
successfully completed. The 5,000 seat capacity recreational complex will include different
modern facilities and amenities such as an arena and a central terrace which all aim at attracting
tourists and sporting personalities to the city of Melbourne. During and upon completion, the
complex will provide numerous benefits to the city residents that will include increased job
opportunities and subsequent increase in living standards. Therefore, based on the company’s
history of performance and rich experience, awarding Watpac the tender to oversee the
redevelopment of the park is a great decision. Watpac is a construction and civil engineering
company that is based in Brisbane, Australia. The company was established and currently
managed by a group of experienced individuals whose primary objective is to sustain the
company’s competitive advantage in an industry that is faced with huge global competition.
Therefore, before accepting the tender, Watpac must explore the rationale of the project
to ascertain whether it is economically viable both in the long and short run. From the estimated
figures, it's recommended that Watpac should consider rejecting the tender on the grounds that
the company will be able to comfortably breakeven. However, the project further recommends
that Watpac can consult with the city of Melbourne officials to inquire whether the aggregate
project cost can be increased to approximately $300m. Unquestioningly, Watpac is a business
entity whose primary objective is to remain competitive by maximizing profits and minimizing
possible losses. If the city can subscribe to Watpac’s conditions, then the project recommends
that the can continue with the implementation of the tender.

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Information on the Project
Project background
Melbourne Park was a sports complex that was initiated by the Melbourne Sports and
Entertainment departments to help the city regain its lost image. The projected facilities include
an open grand slam, tennis courts, theatres, and football pitches among other important social
facilities that could be used to host various events. The project can be traced back to 1988 when
the initial phases of construction were completed. Originally referred to as the Flinders Park, the
project was touted to maximize the sporting potentials in the country and to help in preserving
the unique cultural aspects of the citizens. Initially, the development of the park was initiated to
support the growing popularity of the Australian Open and to secure the future of Melbourne as
the city of choice to host major events in Australia.
The redevelopment work placed significant emphasis on the comfort of the revelers
making it one of the best entertainment facilities in the whole world. The Melbourne Park
redevelopment project is currently in its third stage and is estimated to cost around $271 million
according to the city’s estimated figures. The new redeveloped multi-purpose 5,000 seat capacity
complex will also include an arena, a central terrace, a state-of-the-art elevated outdoor public
lounge, and an exceptional center. The complex will also include various broadcast studios and
logistics hub among other important improvements.
Tender structure
The description of the project under tender by Watpac Company is subsequently
stipulated. Currently, the company plans to tender the Melbourne Park Redevelopment Stage 3
project. The project will be conducted in Batman Avenue & Olympic Boulevard and is projected
to cost approximately $200m according to Watpac’s tender documents. However, this cost may

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significantly change depending on various market dynamics (Tunstall 2006). Melbourne Park
will function as a media center for the city of Melbourne upon completion. Some of the functions
that will define the company will include a central logistics hub that will also include a unique
central loading dock and a public café. The center will also include an Arena with a sitting
capacity of approximately 5000 people. In addition, the facility will incorporate a public
concourse area, broadcast compound, a tennis façade, and a big car park. The development of
Southern Precinct entries and the re-landscaping of the backyards are other important facelifts
that will be conducted at the facility. The present tubular bridge linking the new central terrace
will also undergo serious redevelopment and facelifts.
Contract benefits, plan, and design
If awarded the tender, the company has a distinctive plan that clearly details the plan and
design of the project. In particular, the project will be completed in 5 different stages with each
stage taking approximately 2 months (Afzal and Lim 2013). For instance, the first stage of the
project will involve the demolition of unwanted structures, scabbing and collection of relevant
materials for the project. Subsequently, there will be a thorough landscaping of the Garden
Square, development of a new Function and Media Centre among other minor improvements.
Remarkably, the repair of the North Access Road will further facilitate a two-way traffic and
pedestrian movements, especially during rush-hours. However, to successfully complete the
project, the company will demolish certain structures that may significantly hinder the
construction activities that will be conducted at the facility.
Furthermore, it is envisaged that this project will provide the company with the much-
needed market dominance in Australia upon successful completion (Austin, Baldwin and
Newton, 2006). Likewise, the project will significantly boost the city of Melbourne’s social and