Transport
Projects
Major Road Projects Victoria: Transaction & Strategic Advisory
The Suburban Roads Upgrade (SRU) is a transformative program aimed at improving Victoria’s suburban road network, including road duplications, widening, and long-term maintenance. Originally structured as a Public-Private Partnership (PPP), the program was restructured into a Program Delivery Approach (PDA) to allow projects to be awarded progressively to pre-qualified contractors.
This model integrates Alliance and Design & Construct (D&C) contracting principles, ensuring flexibility, cost efficiency, and optimal project outcomes.
Project Detail
- Client: Major Road Projects Victoria (MRPV)
- Engagement Value: AUD $12,000,000
- Duration: November 2019 – 2024
- Location: Victoria, Australia
Our Role
Flagstaff Consulting Group was engaged as the Lead Transaction & Strategic Advisor, providing expert guidance in procurement, contract structuring, and financial management for the successful execution of the Incentivised Target Cost (ITC) model.
Key Responsibilities
Transaction & Procurement Management: Developed a structured ITC payment model, incentivising performance, cost efficiency, and risk mitigation.
Contractor Engagement & Market Optimisation: Created pre-qualification contractor panels, ensuring faster project awards and delivery readiness.
Risk & Governance Strategy: Designed risk allocation frameworks, balancing project complexity, scale, and financial sustainability.
Outcomes
Accelerated Project Delivery: The first four projects commenced in 2020, with 6-12 more projects in the pipeline.
Improved Cost Control: Ensured better market participation and value-for-money procurement.
Strengthened Industry Collaboration: Facilitated joint reviews, co-location strategies, and shared innovation opportunities.
Flagstaff Consulting Group – Delivering Smart Procurement & Transaction Strategies for Infrastructure Success.