Embedded Network Connection Advice
OVERVIEW:
A NDIS Healthcare Accommodation Development on Bell St encountered substantial financial obstacles when the utility company, Jemena, significantly increased their original cost estimate just before commencing work. The sudden escalation in costs posed a serious threat to the project’s feasibility.
Project budget: ~$5B
Equisent Group
Year Completed
2024
Preston, VIC
UTILITIES CHALLENGE:
Initially, the project had a cost estimate of $140,000, which was acceptable to the client (Equisent Group).
However, Jemena later issued a variation that increased the cost by $213,000 due to work hour restrictions imposed by VicRoads.
This unexpected increase was primarily because the works had to be done at night and on weekends on the busy Bell St, making the project potentially unaffordable for the client.
SEAMLESS SOLUTION:
This unexpected increase was primarily because the works had to be done at night and on weekends on the busy Bell St, making the project potentially unaffordable for the client.
By presenting this analysis and negotiating with Jemena, they managed to have the variation revoked and secured a $14,000 refund on the original offer, ensuring the project could proceed without the inflated costs.
MULTIDISCIPLINARY APPROACH:
The resolution involved a coordinated technical and commercial approach. NEN Consulting provided:
- Analysis of utility cost models and infrastructure financing
- Retrieval and review of historical usage and billing data
- Engagement with Jemena project managers and utility stakeholders
- Verification of maximum demand calculations and network design inputs
- Review of utility connection offers and cost breakdowns
- Strategic advocacy to achieve a favourable commercial outcome for the client