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HMAS Coonawarra Redevelopment Project

Project Scope

Project Scope

Project Scope

12 qty 3.3

  • 12 qty 3.3 x 10.6m 50 kPa PNE Fenders with SS2205 Guide Rails
  • 6 qty SS2205 Mooring Sliders with 50T SWL
  • 12 qty UHMWPE Backing Panels
  • 20 qty 200T Horn Bollards

Contract Value:

3200K EUR @ 20% GP

Electric winch

Sliding Mooring Block (at top position)

Retrieval system

Design

SS2205 Guide Pipe (50T SWL)

Detail View

Rubber Dampener

Project Execution

Lessons Learned

Challenges

Project Execution

Purchasing Excellence

Results

Defects &

Commercial

Challenges

  • Increase in commodity rates due to global events (pandemic and Russia-Ukraine conflict)
  • SS2205 Price at Tender (Nov 2020) - USD$9.80/kg
  • SS2205 price at Purchase (Apr 2022) - USD$14.08/kg
  • Restrictions on Molybdenum imports caused significant delays at SS2205 foundry, putting both projects at risk of LDs
  • Development of new mooring slider design and scope changes a significant strain on resources

Purchasing Excellence

Combined purchasing of both contracts and strong negotiations resulted in 130K EUR reduction in purchase price from initial quotation:

-24 qty 450 OD SS2205 PNE Guide Rails

-6 qty 610 OD SS2205 Mooring Sliders

Defects and Commercial

Negative

Positive

Wins and losses

LoR Contract renegotiated at time of award at higher SS2205 rates

Galvanising defects resulted in significant resupply and rework costs*

Chain restraint design issues resulted in air freight costs

Pandemic relief variation under review by client*

Surface rust present on SS2205 guide rails installed on site*

Shipping variation verbally agreed by client*

*Still under revew

Results

Mooring Sliders

Pneumatics

PRJ-001489-002

PRJ-001489-001

Contract Value - 1500K EUR

Contract Value - 1700K EUR

Delivered Margin - 13% *

Delivered Margin - 18%

Containers

Gross Profit - 195K EUR*

Gross Profit - 306K EUR

All SS2205 Guide Rails Installed, 2 of 12 PNE Fenders installed. Remainder installed Q1 2023

All goods delivered to site, mooring sliders pending installation Q1 2023

*Outstanding variation claims and defects will impact final project margin/profit

Lessons Learned

  • Engineering resource requirement significant in new product development
  • Lengthy design timeline left project exposed to fluctuations in commodity and FX rates
  • Detailed shipping and handling procedures required for stainless to prevent pitting and surface contamination

Key findings 2

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