Project Overview

TAG Advisory was engaged by Main Roads Western Australia as Commercial Advisors for the Tonkin Highway Extension project, providing critical commercial assessment and tender evaluation services across Package 1 and Package 2 of this transformative transport infrastructure programme. The extension project represents one of Perth's most significant road infrastructure investments, extending Tonkin Highway to improve freight efficiency and regional connectivity. TAG Advisory's role encompassed comprehensive commercial evaluation during the tender phase with ongoing support continuing through the delivery phase, ensuring robust commercial frameworks and value for money throughout the project lifecycle.

Key Challenges

The Tonkin Highway Extension presented substantial commercial complexity with multiple large-scale packages requiring coordinated delivery whilst maintaining traffic flow on existing networks. Package structuring required careful commercial assessment to ensure appropriate risk allocation, competitive tension and delivery capability. The scale of works and market conditions created challenges in assessing contractor capacity, pricing sustainability, and programme deliverability across the multiple packages.

Evaluating tenders for major civil works of this magnitude demanded sophisticated analysis of contractor methodologies, resource planning and commercial proposals. The need to maintain competitive tension, whilst ensuring capable contractors were selected, required balanced commercial assessment. Interface risks between packages, staging complexities and stakeholder requirements added layers of commercial consideration requiring expert evaluation.

Methodology and Approach

TAG Advisory implemented a comprehensive commercial advisory framework tailored to the project's scale and complexity. The team worked closely with Main Roads' project team to establish robust evaluation criteria aligned with project objectives and risk appetite. Commercial assessment methodologies were developed to ensure consistent, transparent evaluation across both packages whilst recognising unique characteristics of each scope.
For Package 1 and Package 2 tender evaluations, TAG Advisory provided:

• Analysis of pricing structures and cost build-ups
• Assessment of programme and methodology implications on commercial outcomes
• Benchmarking against market rates and comparable projects
• Detailed commercial assessment of tender submissions
• Evaluation of commercial terms and risk positions
• Identification of commercial risks and opportunities
• Recommendations on preferred tenderers from commercial perspective
• Support during clarification meetings with tenderers

The evaluation process maintained probity requirements whilst enabling thorough commercial interrogation of proposals. TAG Advisory's approach balanced price competitiveness with commercial sustainability, ensuring selected contractors had robust commercial frameworks for successful delivery.

Ongoing Delivery Support

Following contract award, TAG Advisory continues to provide commercial advisory support during the delivery phase. This ongoing engagement ensures commercial frameworks established during tender remain effective throughout construction. Services include commercial issue resolution, variation assessment support, claims analysis and strategic commercial advice as complex delivery challenges emerge.

The continuous involvement enables proactive identification of commercial risks and opportunities, supporting Main Roads in maintaining commercial control whilst fostering collaborative contractor relationships. This ongoing support ensures commercial decisions align with project objectives and contractual frameworks established during procurement.

Outcomes and Value

TAG Advisory's Commercial Advisory services delivered successful tender evaluation and contract award for both packages, establishing robust commercial frameworks for project delivery. The comprehensive assessment process identified optimal commercial outcomes balancing value for money with delivery certainty. Clear documentation of commercial evaluation supported transparent decision-making and satisfied probity requirements for this high-profile procurement.

Strategic commercial advice enabled Main Roads to negotiate favourable terms whilst maintaining contractor commitment to project success. Risk identification and mitigation strategies developed during evaluation informed contract management approaches. The ongoing delivery support continues to protect Main Roads' commercial interests whilst enabling efficient project delivery.

Conclusion

The Tonkin Highway Extension engagement demonstrates TAG Advisory's capability to provide sophisticated commercial advisory services for major infrastructure projects. Through comprehensive tender evaluation and ongoing delivery support, TAG Advisory has enabled Main Roads to establish and maintain robust commercial frameworks for this transformative infrastructure investment. The successful engagement reinforces TAG Advisory's reputation as trusted commercial advisors capable of navigating complex procurement and delivery challenges to achieve optimal outcomes for Western Australia's critical transport infrastructure.