Project Overview

TAG Advisory was engaged by Main Roads Western Australia to provide comprehensive cost management and procurement services for the Toodyay Road Upgrade project, a critical regional infrastructure improvement enhancing safety and connectivity in the Wheatbelt region. The engagement encompassed preparation of independent cost estimates through design development, development of Bills of Quantities and Schedule of Rates for tender documentation and complete tender evaluation services leading to successful contract award. With construction commencing on site in early 2026, TAG Advisory will continue providing ongoing support throughout the delivery phase to ensure successful project completion within budget parameters.

Key Challenges

The Toodyay Road Upgrade presented unique, challenging characteristic of regional Western Australian infrastructure delivery. Significant tender price variance reflected the varying risk appetites and capacity constraints of contractors willing to undertake regional projects in current market conditions. The remote location impacted material logistics, labour availability and equipment mobilisation, creating substantial cost uncertainties that required sophisticated management approaches.

Geological uncertainty, particularly regarding rock excavation presence and extent, created significant pricing risk that threatened budget viability. The challenge involved developing procurement strategies that would maintain competitive tension whilst managing this geological uncertainty. Regional market conditions, with limited contractor availability and high demand for resources, added complexity to achieving value for money whilst ensuring delivery capability.

Methodology and Approach

TAG Advisory implemented a comprehensive, staged approach to cost management and procurement. Independent cost estimates were prepared at progressive design stages, enabling proactive identification and management of cost pressures. The methodology incorporated detailed quantification, regional cost factors and risk assessment specific to the Toodyay location.

Development of Bills of Quantities and Schedule of Rates required particular attention to rock excavation uncertainty. TAG Advisory adapted the Schedule of Rates structure to accommodate variable rock quantities, enabling competitive tendering whilst protecting both Main Roads and contractors from excessive quantity risk. This innovative approach maintained commercial viability whilst addressing the project's primary cost uncertainty.

Tender evaluation services encompassed comprehensive assessment of submissions, identifying significant price variations between tenderers. TAG Advisory's analysis provided clear understanding of pricing drivers, contractor assumptions and risk allocations proposed. The evaluation process identified the preferred tenderer based on value for money, capability and risk management approach, leading to successful contract award within project budget despite initial tender challenges.

Strategic Outcomes

TAG Advisory's strategic cost management approach delivered exceptional outcomes despite challenging regional conditions. The adapted Schedule of Rates successfully managed rock excavation uncertainty, enabling competitive tendering and fair risk allocation. Tender evaluation identified a capable contractor offering value for money whilst maintaining appropriate risk contingencies.

The structured approach to cost management throughout design development ensured the project remained within budget parameters despite regional cost pressures. Clear documentation and transparent evaluation processes satisfied probity requirements whilst supporting confident decision-making for this important regional investment.

Ongoing Delivery Support

With construction commencing in early 2026, TAG Advisory will provide continuous support throughout the delivery phase. Ongoing services will include cost monitoring, variation assessment, claims evaluation and strategic advice as construction progresses. This continued involvement ensures the commercial frameworks established during procurement remain effective throughout delivery, protecting Main Roads' interests whilst enabling efficient construction.

The ongoing engagement will strengthen relationships and continuity of knowledge developed during the procurement phase, ensuring seamless transition into construction and maintaining cost control throughout the project lifecycle.

Conclusion

The Toodyay Road Upgrade project demonstrates TAG Advisory's expertise in managing complex regional infrastructure procurement and delivery. Through innovative approaches to risk management, comprehensive cost control and strategic procurement solutions, TAG Advisory enabled Main Roads to achieve value for money despite significant regional delivery challenges. With ongoing support continuing through the construction phase commencing in 2026, TAG Advisory remains committed to ensuring successful delivery of this vital regional infrastructure upgrade, reinforcing our capability to navigate the unique challenges of regional Western Australian project delivery.