Welsh Government M4 Corridor around Newport Rebuttal Statement July 0217 Page 1 Magor Rest Area objections Objection Refs OBJ0026 (Roadchef) & OBJ0292 (Rontec) File Refs WG/REB/OBJ0026 +OBJ0292-BWo Response to Objectors’ Evidence: Roadchef – Construction Cost Aspects Rontec – Construction Cost Aspects Adran yr Economi a’r Seilwaith Department for Economy and Infrastructure
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Welsh Government M4 Corridor around Newport Rebuttal Statement
3.5. SPON’s Civil Engineering and Highways Works Price Book 2016’Limitations 8
3.6. Vectos Cost Estimate 9
CONCLUSIONS – SCHEME AND ALTERNATIVES REBUTTAL 15
Welsh Government M4 Corridor around Newport Rebuttal Statement
July 0217 Page 3
AUTHOR
1.1 I am Barry Woodman. I am a Director of Costain who are a major United
Kingdom Contractor and the Project Director of the Costain Vinci Joint
Venture. My professional qualifications are set out in my main proof of
evidence and are not repeated here.
1.2 The evidence which I have prepared and provide in this proof of
evidence has been prepared and is given in accordance with the
guidance of my professional institution and I confirm that the opinions
expressed are my true and professional opinions.
Welsh Government M4 Corridor around Newport Rebuttal Statement
July 0217 Page 4
SCOPE AND PURPOSE OF THIS PROOF OF EVIDENCE
2.1 This proof of evidence addresses matters raised by objectors concerning
the rest area or motorway service area at Magor just off junction 23A of
the existing and proposed new motorway.
2.2 Roadchef and Rontec have submitted Statements in Evidence in relation
to the draft statutory Orders associated with the Welsh Government’s
proposals for the M4 Corridor around Newport (the Scheme), which has
been received via the Programme Officer.
2.3 The evidence of Roadchef and Rontec is provided in several volumes
from different witnesses as follows:
i. Mr Simon Turl, Roadchef (OBJ0026) - – Main and Supplementary evidence dated February and June 2017
ii. Dr Ian McKay, Roadchef (OBJ0026) - – Main and Supplementary evidence dated February and June 2017
iii. Mr Mike Axon, Vectos, on behalf of Roadchef (OBJ0026) – Main and Supplementary evidence dated February and June 2017
iv. Mr Henry Church, CBRE, on behalf of Rontec (OBJ0292)
2.4 This evidence will respond to the points raised in the evidence of
Roachef’s Mike Axton where it relates to the construction costs for the
Scheme: the M4 Corridor around Newport (hereafter referred to as the
Scheme), comprising a proposed new dual three lane motorway to the
south of Newport and complementary measures.
2.5 My evidence will also respond to the construction cost aspects of the
alternative routes that Roadchef has proposed.
2.6 Aspects of my evidence interface with the evidence of other witnesses
including Matthew Jones (WG1.1.1, WG 1.1.6), Bryan Whittaker
(WG1.2.1, WG 1.2.6), Stephen Bussell (WG1.3.1, WG 1.3.5), Ben Sibert
(WG 1.5.5), Dr Peter Ireland (WG1.7.1, WG 1.7.4) and John Davies (WG
1.23.1 and WG 1.23.4).
Welsh Government M4 Corridor around Newport Rebuttal Statement
July 0217 Page 5
2.7 For simplicity of reference, throughout my evidence I will refer to the
following abbreviations:
a) ECI Early Contractor Involvement
b) Scheme M4 Corridor around Newport
c) DJV Design Joint Venture (Arup and Atkins)
d) SPON’s SPON’s Civil Engineering and Highways Works
Price Book 2016
e) PLI Public Local Inquiry
f) CVJV Costain Vinci Joint Venture
g) SU Statutory Utilities
2.8 My evidence is presented in the following structure, with a detailed
contents provided at the start of the document.
1. Author
2. Scope and Purpose of this Proof of evidence
3. Scheme and Alternatives Rebuttal:
4. Scheme and Alternatives Rebuttal - Conclusions
Welsh Government M4 Corridor around Newport Rebuttal Statement
July 0217 Page 6
SCHEME AND ALTERNATIVES REBUTTAL
3.1. Introduction
The objectors’ evidence makes several statements about the cost
estimation of their proposed alternatives, westbound on slip and the
proposed eastbound off slip.
In the following sections of my rebuttal evidence, I will address specific
points raised by the objectors in their evidence where they are within
my area of expertise.
3.2. Scheme and Alternatives Cost Estimates
Mike Axon’s Supplementary Proof of Evidence dated June 2017 raises
the following points;
Page 2 Point 8
‘WG has provided construction cost estimates for elements of Junction 23 and Junction 23A6. WG is not able to provide the evidential basis for those costs for reasons of “commercial in confidence.’
Page 2 Point 9
‘Vectos has refined its cost estimates for the eastbound and westbound slip roads at Junction 23A based on publicly available industry standard evidence. It has revised its estimates for Objectors’ Suggested Alternatives (OSA) 8 to 11. These are set out in Appendix MAS 1.’
Page 2 Point 10
‘The Vectos cost estimates are, in the main, substantially lower than the WG estimates. They estimate the cost of the eastbound slip road in the order of £1.0 to £2.2m, and the westbound slip road in the order of £5.0 to £8.0m’.
Page 23 Point 13
‘The cost of providing both eastbound and westbound slip roads could be as little as ‘less than £5.4m’ over and above the Scheme cost of £1.093m (0.5%).’
Page 23 Point 14
Welsh Government M4 Corridor around Newport Rebuttal Statement
July 0217 Page 7
‘Even on the basis of the WG’s assessment, the evidence for which is not consistent with the industry rates, and has not been made available for me to test, the cost is ‘less than 14.5m’ (1.3%).’
Appendix MAS 1, Cost Summary Note
‘The Works Cost calculations for each of the RoadChef alternative
options are calculated using the Approximate Estimating Rates from
SPON’s Civil Engineering and Highways Works Price Book 2016’
The principal points from the above will be address in the following
sections as follows;
Commercial in Confidence
Costain Vinci Joint Venture Pricing Approach
SPON’s Limitations
Vectos Cost Estimate
3.3. Commercial in Confidence
The rates and prices used to assess the cost of the alternatives
proposed by Vectos have been obtained in open competition from the
supply chain who will deliver the various elements of the scheme
should it proceed to construction. It would clearly be inappropriate to
publicly disclose these rates at this time as it would prejudice the
commercial position of preferred suppliers in future negotiations. The
public interest is served by maintaining confidentiality in relation to such
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