Financial Cost Monitoring - Contract Progress Report:

1. ISLINGTON 220KV NEW LINE BAY PROJECT By Michael Yang Project Background To install a new 220kV New Line Bay at Islington Substation as part of the ISL-KIK 3rd cct upgrade project. The overall project involved the installation of a third circuit that runs from Islington to Kikiwa substation to provide extra thermal capacity when the load is high and an extra security in case of unforced outages. Islington substation project involved the installation and commisioning of disconnectors, circuit breakers, current transformer, gantries etc and the connection to the existing 220kv network at Islington substation. • Achievements • No Delays in commissioning of equipments – although a majority of the client supplied items were delayed alternatives were found in time and shipped to site for use. • Minimum time was used by the crew to construct the new line bay. • Communications • Follow structure – The client (Transpower NZ Ltd) assigned a representative (Mitton Consulting) to communicate to the contractor (Transfield Services NZ Ltd). This structure was altered in several occasions to allow closer monitoring of materials supplied by client. • In one case the client was mis-informed in regards to a delivery problem on a client supplied item, this caused a variation cost which had to be absorbed by Transfield Services. • Financial • Cost Monitoring - Contract Progress Report: • Used for forecasting the final margin of the project by forecasting the costs to come. • Unaccounted costs – A Variations Spreadsheet was created to capture the extra costs that were not part of the original contract. Most were approved but some could not. • Project suffered a loss of $3.4k due to multiple reasons, main one due to the unaccounted travel and accommodation costs by the crew. • Safety • Many tools were used on the job to ensure safety of workers including Job Risk Analysis, Safety plan, tailgate. However this did not prevent the injury of an employee who was injured by a lifting equipment. • Employee was taken to hospital by ambulance, but was discharged later on the same night.