Project Alliance Agreement Epping to Thornleigh Third Track Alliance

302 Pages·2013·1.12 MB·English

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Project Alliance Agreement
Epping to Thornleigh Third Track Alliance
Transport for NSW
ABN 18 804 239 602
("TfNSW")
Leighton Contractors Pty Limited
ABN 98 000 893 667
("NOP1")
Abigroup Contractors Pty Limited
ABN 40 000 201 516
("NOP2")

VERSION 8

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Contents
1. Behavioural commitments..........................................................................................1
1.1 Alliance Objectives and Alliance Principles...................................................1
1.2 Co-operation and innovation..........................................................................2
1.3 Commitment to act in good faith....................................................................2
1.4 Promote interests of the Project....................................................................2
1.5 Sharing of information....................................................................................2
1.6 Avoid disputation...........................................................................................3
1.7 Conflicts of interest........................................................................................3
1.8 Collective sharing of risk and opportunities...................................................3
1.9 Future addition of Participants.......................................................................3
2. Primary performance obligations..............................................................................3
2.1 Primary performance obligations of Participants...........................................3
2.2 Primary performance obligations of TfNSW ..................................................4
2.3 Parent Company Guarantee..........................................................................4
2.4 NOP Arrangements.......................................................................................4
3. Governance and management...................................................................................4
3.1 Alliance Leadership Team.............................................................................4
3.2 Alliance Management Team..........................................................................5
3.3 Alliance Manager...........................................................................................5
3.4 Senior Executive Review Group....................................................................5
3.5 Principal's Representative.............................................................................5
3.6 NSFC Project Control Group.........................................................................5
4. SERG............................................................................................................................6
4.1 Establishment and Functions.........................................................................6
4.2 SERG Members.............................................................................................6
4.3 SERG Chairperson........................................................................................6
4.4 Meetings of the SERG...................................................................................6
4.5 Minutes of SERG meetings...........................................................................7
5. Alliance Leadership Team..........................................................................................7
5.1 Establishment and functions of ALT..............................................................7
5.2 ALT Members................................................................................................7
5.3 ALT Chairperson............................................................................................8
5.4 Meetings of the ALT.......................................................................................8
5.5 Decisions of ALT............................................................................................8
5.6 Minutes of ALT meetings...............................................................................9
5.7 Reports to the SERG.....................................................................................9
6. Alliance Management Team and Alliance Manager...............................................10
6.1 Establishment, structure and functions of AMT...........................................10
6.2 Appointment of Alliance Manager................................................................10
6.3 Functions of the Alliance Manager..............................................................10
6.4 Interface between Alliance Manager and ALT.............................................11
6.5 Approaches to Employees...........................................................................11
7. Environmental Management.....................................................................................11
7.1 Environment Protection Licence..................................................................11
7.2 Environmental Representative.....................................................................12
8. Commencement and access and care of the Site..................................................13
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8.1 Commencement..........................................................................................13
8.2 Site access for the Participants...................................................................13
8.3 Alliance to acquire access...........................................................................15
8.4 Site access for TfNSW.................................................................................15
8.5 Access protocols..........................................................................................16
8.6 Care of the Works........................................................................................16
8.7 Reinstatement..............................................................................................16
8.8 Temporary Works........................................................................................16
8.9 Remote Sites and Extra Land......................................................................17
8.10 Property Acquisition.....................................................................................18
8.11 Condition Surveys........................................................................................19
8.12 Third Party Agreements...............................................................................19
8.13 Co-operation with Other Contractors...........................................................20
8.14 Co-operation with Interface Contractors......................................................21
8.15 Interface Disputes........................................................................................24
8.16 Track Possessions and Power Isolations....................................................24
8.17 TfNSW Supplied Items................................................................................25
9. Design, documents and auditing.............................................................................25
9.1 Supply of design and documents by TfNSW...............................................25
9.2 Supply of design and other documents.......................................................25
9.3 Submission for review by Principal's Representative..................................26
9.4 AMP and TSR Implementation....................................................................29
9.5 Exchange of Information Between Government Agencies..........................29
9.6 NOP Performance Reports..........................................................................29
9.7 Alliance Intellectual Property Rights............................................................29
9.8 Background Intellectual Property Rights......................................................30
9.9 Third parties’ Intellectual Property Rights....................................................30
9.10 Moral rights..................................................................................................31
9.11 Claims..........................................................................................................31
9.12 Confidentiality..............................................................................................31
9.13 Public Disclosure.........................................................................................33
9.14 Transparency...............................................................................................34
9.15 Financial Auditor..........................................................................................34
9.16 Audit of Records..........................................................................................34
9.17 Overpayments.............................................................................................34
9.18 Retention of Records...................................................................................35
9.19 Collaborative audit of compliance with AMP................................................35
9.20 Continuing effect..........................................................................................35
9.21 Detailed Designer and Signalling Designer.................................................35
10. Works..........................................................................................................................36
10.1 Subcontracts................................................................................................36
10.2 Key Subcontractors.....................................................................................37
10.3 Nominated Subcontractors..........................................................................38
10.4 Novation of Detailed Designer.....................................................................38
10.5 Deed Poll by NOPs in favour of RailCorp....................................................38
10.6 Related entity transactions..........................................................................38
10.7 Statutory Requirements...............................................................................39
10.8 Subcontractor warranties.............................................................................39
10.9 Work health and safety................................................................................40
10.10 Project Safety Management Plan................................................................41
10.11 Safety Compliance.......................................................................................43
10.12 Rail Safety Accreditation..............................................................................44
10.13 Rail Safety Work..........................................................................................45
10.14 Protection of people, the environment and property....................................45
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10.15 Industrial relations........................................................................................45
10.16 Protection of cultural heritage and native title rights....................................45
10.17 National Greenhouse and Energy Reporting Act 2007 (Cth).......................45
10.18 Minimise disruption......................................................................................46
10.19 Statutory Functions......................................................................................47
10.20 Commonwealth Funding..............................................................................47
10.21 Options........................................................................................................48
11. Quality........................................................................................................................48
11.1 Quality assurance........................................................................................48
11.2 Certificates...................................................................................................48
11.3 Defects.........................................................................................................49
12. Time, progress and Completion...............................................................................50
12.1 Progress and Date for Completion ..............................................................50
12.2 Suspension of Alliance Activities.................................................................50
12.3 Certificate of Completion.............................................................................51
12.4 Certificate of Final Completion.....................................................................52
12.5 Portions........................................................................................................53
13. Directions by TfNSW and Target Adjustment Events............................................53
13.1 TfNSW Reserved Powers............................................................................53
13.2 Impact Request............................................................................................56
13.3 Target Adjustment Events...........................................................................57
13.4 Adjustments to Commercial Framework......................................................57
13.5 ALT may recommend a change to the Works..............................................58
13.6 Adjusting the Commercial Framework.........................................................59
13.7 Target Adjustment Guidelines.....................................................................59
14. Payments....................................................................................................................59
14.1 Compensation for Works.............................................................................59
14.2 Invoices and payments................................................................................60
14.3 Payment for materials at Site but not incorporated......................................62
14.4 Payment for materials not at Site.................................................................63
14.5 Participants to lodge statutory declarations.................................................63
14.6 TfNSW may make direct payments on request...........................................63
14.7 TfNSW may pay on court order...................................................................63
14.8 Set-off..........................................................................................................63
14.9 GST.............................................................................................................64
14.10 Long Service Levy.......................................................................................65
15. Remedies and liabilities............................................................................................65
16. Insurances and indemnities.....................................................................................66
16.1 Insurance for the Works...............................................................................66
16.2 Liability Insurance........................................................................................67
16.3 Alliance professional indemnity insurance...................................................67
16.4 Insurance of employees...............................................................................67
16.5 Subcontractors’ insurance...........................................................................67
16.6 Designers' Insurance...................................................................................68
16.7 Notices of potential claims...........................................................................69
16.8 Accounting for insurance proceeds.............................................................69
16.9 Other insurances by NOPs..........................................................................69
16.10 Cross liability................................................................................................71
16.11 Settlement of claims....................................................................................71
16.12 Indemnities..................................................................................................72
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16.13 Accounting for third party payments and recoveries....................................73
17. Termination................................................................................................................74
17.1 Notice of termination....................................................................................74
17.2 Effect of termination.....................................................................................74
17.3 Actions following termination.......................................................................74
17.4 Termination payments.................................................................................75
17.5 Wilful Default................................................................................................75
17.6 Exclusion from further participation.............................................................76
18. Resolution of Disagreements...................................................................................76
18.1 Handling Disagreements.............................................................................76
18.2 Deadlock resolution procedure....................................................................77
19. Value for Money.........................................................................................................78
19.1 Value for money...........................................................................................78
19.2 Benchmarking of Alliance performance.......................................................78
20. Miscellaneous Provisions.........................................................................................79
20.1 Service of notices........................................................................................79
20.2 Right to assign or subcontract.....................................................................79
20.3 Governing law..............................................................................................80
20.4 Status of Agreement....................................................................................80
20.5 Tariff concessions........................................................................................80
20.6 Australian currency......................................................................................80
20.7 Relationship of the Participants...................................................................80
20.8 Entire agreement.........................................................................................80
20.9 Non-waiver...................................................................................................80
20.10 Corporate power and authority....................................................................81
20.11 No representation or reliance......................................................................81
20.12 Severability..................................................................................................81
20.13 Indemnities..................................................................................................81
20.14 Limitations and exclusions of rights and liabilities .......................................81
20.15 Survival after termination.............................................................................81
20.16 Prior work.....................................................................................................82
20.17 Australian Government Requirements.........................................................82
20.18 Corrupt Conduct..........................................................................................83
20.19 Management Systems.................................................................................83
20.20 Exclusion of Proportionate Liability..............................................................83
20.21 Body or authority ceases to exist.................................................................83
Schedule 1 – Acronyms, definitions and interpretation........................................................87
Schedule 2 – Agreement Particulars.....................................................................................106
Schedule 3 – Alliance Principles...........................................................................................115
Schedule 4 – Alliance Values.................................................................................................116
Schedule 5 – Alliance Objectives..........................................................................................117
Schedule 6 – Functions of SERG, ALT, AMT and the Alliance Manager............................118
Schedule 7 – Commercial Framework...................................................................................127
Schedule 8 – Alliance Governance........................................................................................167
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Schedule 9 – Statutory Declaration.......................................................................................175
Schedule 10 – Action in complying with Planning Approval..............................................184
Schedule 11 - Action in complying with Third Party Agreements and Interface
Agreement................................................................................................................188
Schedule 12 – Parent Company Guarantee..........................................................................200
Schedule 13 - Certificates of Design Compliance................................................................209
Schedule 14 - Certificates of Construction Compliance.....................................................211
Schedule 15 – Certificate of Completion...............................................................................213
Schedule 16 – Certificate of Final Completion.....................................................................215
Schedule 17 – Payment Certificate........................................................................................217
Schedule 18 - Form of Warranty............................................................................................218
Schedule 19 - TfNSW Supplied Items....................................................................................221
Schedule 20 – Target Adjustment Guidelines......................................................................222
Schedule 21 – Property Owner's Certificate........................................................................230
Schedule 22 – Site and Site Requirements...........................................................................231
Schedule 23 - Form of Subcontractor Deed.........................................................................240
Schedule 24 – Warranties required from Subcontractors...................................................244
Schedule 25 – Deed of Novation............................................................................................246
Schedule 26 - Form of Confidentiality Undertaking.............................................................256
Schedule 27 - Serious Incident Protocol...............................................................................258
Schedule 28 - ETTT Insurance Claims Protocol...................................................................264
Schedule 29 - Deadlock Resolution Agreement...................................................................270
Schedule 30 - Consultant Deed of Covenant........................................................................282
Schedule 31 - Track Possessions..........................................................................................286
Schedule 32 - Options.............................................................................................................289
Schedule 33 - Form of Other Contractor Deed Poll.............................................................290
Schedule 34 - Deed Poll - Interface Agreement....................................................................293
Exhibit A - TSRs......................................................................................................................295
Exhibit B - Works Brief...........................................................................................................296
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Exhibit C - Target Outturn Cost Summary............................................................................297
Exhibit D - TfNSW's Insurance Policies................................................................................298
Exhibit E - Pre-Condition Surveys.........................................................................................299
Exhibit F - Planning Approval................................................................................................300
Exhibit G - Value for Money Statement.................................................................................301
Exhibit H - Project Site Drawings...........................................................................................302
Exhibit I - Third Party Agreements........................................................................................303
Exhibit J - Interface Agreement............................................................................................304
Exhibit K - Partnership Agreement........................................................................................305
Exhibit L - KRA Performance Measurement Plan................................................................306
Exhibit M - Relevant standard and model conditions of approval for linear
infrastructure...........................................................................................................307

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ì/^y
ck Alliance Agreement made at on
Parties Transport for NSW ABN 18 804 239 602 aNSW Government agency
constituted by section 3C(1) of the Transport Administration Act 1988 (NSW) of
Level6, l8 Lee St, Chippendale NSW 2008 ("TÍNSW")
The other parties to this Agreement are set out in the Agreement Particulars (each a
"Non Owner Participant" or rrNOPrr and collectively the "Non Owner
Participants" or "NOPs"),
(and all together referred to as the "Participants").
The Participants will generally be referred to as "we", "our" or "us", unless the
context requires otherwise.
Background
A. TfNSW is a NSW Government agency constituted under the Transport Administration Act
1988, and is responsible for developing certain major railway systems and other m-ajor
transport projects, including facilitating their development by other persons.
B. RailCorp is a NSV/ Government agency constituted under the Transport Administration Act
1988 and is responsible for the provision of a safe, clean and reliable passenger rail network
throughout NSW. It is also responsible for the safe operation, crewing and maintenance of
passengü trains and stations.
C. The Epping to Thornleigh Third Track (the "ETTT") is a key project in the Northern Sydney
Freight Conidor program. The primary operational objective of the Northern Sydney Freight
Corridor program is to expand track capacity to enable better coordination of freight and
passenger services. The ETTT does this by providing an additional northbound (uphill) track
between Epping and Pennant Hills, connecting into the existing refuge track between Pennant
Hills and Thornleigh (the "Project").
D. The NOPs were selected to enter into this Agreement following their participation in a three
stage selection process, culminating in the Proposal Development Phase.
E. This Agreement sets out the basis on which we will complete the Alliance Activities.
F. Capitalised words and acronyms are defined in Schedule 1. The rules regarding the
interpretation of this Agreement are also set out in Schedule 1.
Operative provis¡ons
Behavioural comm itments
1
1.1 Alliance Objectives and Alliance Principles
We will:
(a) adopt all reasonable measures to ensure that the Alliance Objectives are achieved;
(b) conduct the Alliance Activities in a way which is consistent with the Alliance
Principles and will take all reasonable steps to ensure that our Associates involved
in carrying out the Alliance Activities do likewise; and
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(c) exhibit behaviours consistent with the Alliance Principles so as to achieve the
Alliance Objectives within an ethical, positive, dynamic and results-oriented culture
amongst those associated with carrying out the Alliance Activities.
The Gainshare/Painshare Regime set out in the Commercial Framework is intended to reflect
and reinforce the Alliance Objectives.
1.2 Co-operation and innovation
We will work together in a co-operative and innovative manner for the purpose of:
(a) meeting or exceeding the Alliance Objectives and fully complying with the Alliance
Principles;
(b) producing outstanding results for the Project;
(c) ensuring that the Alliance Activities are carried out in a co-ordinated and efficient
manner;
(d) creating a win-win position for each of the Participants; and
(e) ensuring the successful completion of the Works in accordance with this
Agreement.
1.3 Commitment to act in good faith
(a) We will act in good faith in carrying out the Alliance Activities and will:
(i) be fair, reasonable and honest;
(ii) do all things reasonably expected of us by the others to give effect to the
spirit and intent of this Agreement; and
(iii) not impede or restrict each other's performance of the Alliance
Activities.
(b) If a Participant believes this Agreement is operating unfairly or unreasonably with
respect to a Participant we will use our best endeavours to achieve an agreement
amongst all Participants on such action as may be necessary to remove the cause or
causes of such unfairness or unreasonableness.
(c) Where TfNSW or the Principal's Representative is entitled under this Agreement to
make a decision or determination, give or withhold consent or perform any other act
or omission in its absolute discretion (including under clause 13), TfNSW or the
Principal's Representative (as applicable) will not be subject to the obligation to act
in good faith or to the other requirements of clause 1.3(a).
1.4 Promote interests of the Project
We will promote the interests of the Project and make decisions on a Best For Project basis,
giving as much weight to the interests of the Project as to our own self interest.
1.5 Sharing of information
We will share all information relevant to the Alliance Activities in an honest, open and timely
manner.
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