JP 2086 Phase 1
Prime Contractor: Bovis Lend Lease.
2010/2011 spend: $39 million
This phase of the project will deliver a modernised propellant manufacturing capability at Mulwala, New South Wales, to replace the existing capability that dates back to the 1940s. The works include construction of new nitrocellulose, solvent and propellant production plants, a confined burn facility and a Performance and Safety Testing Centre (PSTC).
A contract was signed with Bovis Lend Lease in June 2007 for the design and construction of the modernised facility.
Practical Completion of construction was contracted for March 2010 but, due to current delays against schedule by the contractor, will take place later in 2010. Commissioning of the new facility will commence shortly after Practical Completion with a 15 month propellant qualification period.
The most significant project risk is that there may be an extended transition phase from the existing plant which would adversely impact on cost and schedule. This is being mitigated by close collaboration with, and provision of technical support and advice by, the existing operator through a support services contract.
The contractor has employed a strategy to commence some construction activities prior to the completion of detailed design for those construction activities, in an attempt to mitigate against schedule slippage. There is a risk that this strategy may impact on schedule and capability. This risk will be realised if changes made at the detailed design stage result in rework of procurement or construction activities already commenced. This is being mitigated by the project through detailed review of design packages and close monitoring of construction activities.
There is a further risk to the project schedule that the contractor may not meet the plant commissioning and propellant qualification programme of 15 months due to the complexity of the manufacturing process and uncertainty of test results. Close monitoring of the contractor’s commissioning and qualification schedules is mitigating this risk. If this risk is realised, final acceptance of the Modernised Mulwala Facility will be further delayed.