Not because organisations lack frameworks. Most already have them.

The harder question is whether those frameworks are producing real assurance, or simply creating the appearance of control.

Julio Bara said, “We tend to measure governance by its structure, not by its impact. That is where the gap sits.”

That gap shows up most clearly in reporting.

Many organisations produce detailed safety and risk packs. They contain metrics, updates, trends and activity summaries. On paper, they look thorough. But the Summit challenged a more important question: Does the reporting actually help leaders understand what matters most, or does it simply prove that reporting has occurred?

Julio said, “The question is not how much information we provide. It is whether that information helps people understand risk and make better decisions.”

That is the difference between reporting and assurance.

Boards and executives do not need more pages. They need a sharper view of critical risk, the effectiveness of controls, emerging exposure and where challenge is required now. Without that, reporting can become detailed but strangely unhelpful.

The Summit also highlighted how easily risk becomes fragmented. Psychosocial risk sits in one lane. Operational risk sits in another. Technology risk is handled somewhere else again. But work does not experience those issues separately, and neither do leaders trying to make decisions in the middle of them.

Julio said, “When risks are managed in isolation, we lose the ability to see how they combine and amplify each other.”

That is where governance has to do more than maintain structure. It has to connect what would otherwise remain separate.

It also has to keep learning.

Good governance is not static. It responds to new information, shifts with the operating environment, and creates enough challenge that leaders can see not only what is being managed, but what is uncertain, emerging or beginning to drift.

Julio said, “Governance should not just exist. It should learn.”

That may be the most useful way to judge it.

Not by the number of committees or the size of the reporting pack, but by the quality of the questions being asked. Are the real issues visible? Are critical risks clear? Are emerging concerns being surfaced early enough to influence decisions?

If the answer is no, the structure may be in place, but the governance is not yet doing its job.

That is the real shift.

Organisations do not need more governance for its own sake. They need governance that gives leaders confidence that risk is being understood clearly, challenged properly and acted on early enough to matter.

Because the best governance isn’t about appearing perfect.

It’s about supporting people to make good decisions. This is the final article in our 2026 OHS Leaders Summit series. To catch up on the full series, start from Part 1: The Great Safety Correction: Why WHS Must Lead, Not Follow, Digital Transformation – Lidiar Group

We talk a lot about shared ownership in safety. But ownership and accountability are not the same thing.

That distinction matters more than it sounds.

In complex organisations, safety sits across multiple functions. WHS builds frameworks and oversight. Operations direct the work. People and Culture shape capability and behaviour. Leaders set priorities and pressure points. Everyone has a role, but when accountability is unclear, the result is rarely collaboration.

Julio Bara said, “When accountability is not clearly defined, it does not get shared. It gets diluted.”

That is why the Summit’s focus on line-led safety was so important.

At its core, line-led safety is not a slogan. It is an operating model. It says the people who plan, direct and deliver the work must also own the hazards, the controls and the decisions that shape risk in real time.

Julio said, “The closer accountability sits to the work, the more effective it becomes. That is where decisions are made and where risk is managed in real time.”

Within this model, the role of WHS becomes more clearly defined.

Instead of being expected to “do safety” for the business, the function becomes clearer and more valuable. It designs the system, builds capability, and provides governance to ensure the system is working as intended.

Julio said, “Safety does not sit with a function. It sits with the business. The role of WHS is to make that possible.”

That clarity is what makes the model work.

The organisations making progress here are not relying on broad statements about responsibility. They are getting specific. Who is accountable for a particular risk? Who supports? Who makes the decision? Who owns implementation? Those details matter because vague accountability rarely survives operational pressure.

Julio said, “People need to understand exactly what they are accountable for. Without that, even well-designed systems struggle to translate into consistent behaviour.”

The Summit also pointed to a broader challenge. Leaders cannot be held accountable for safety if the systems around them are pulling in the opposite direction. If production targets, time pressure or commercial incentives consistently undermine safe decisions, accountability becomes conflicted before it is even exercised.

Julio said, “You cannot ask leaders to be accountable for safety if the system they are operating in is pulling them in a different direction.”

That is why line-led safety is about more than org charts and reporting lines. It depends on accountability sitting with the people leading the work, backed by a system that gives them the authority, support and clarity to act on it.

Bringing Aboriginal knowledge to the kitchen table and beyond, Maudu Collective also offers a unique range of native products including Davidson Plum infused plum puddings, bush chutneys and the much-loved INDIGI FUDGE!

Since establishing Maudu Collective, Valerie has participated in the Shell QGC Indigenous Business Support Program and the TSBE Business Navigator Program. Lidiar Group has been proud to support Valerie through the Shell QGC Indigenous Business Support Program throughout this journey.

Through Valerie’s hard work, determination, and incredible energy — combined with the targeted business support provided through the program — Maudu Collective has achieved an impressive number of milestones in just over a year, highlighting both Valerie’s entrepreneurial drive and the value of strong support networks for Indigenous businesses!

Some of these achievements include:

• Launch of Maudu Collective’s branding and new website
• Protection of the INDIGI FUDGE trademark
• Introduction of new product packaging
• Development of a 3-day cultural immersion retreat in the Bunya Mountains
• Continued expansion of workshops and retreat offerings

Maudu’s cultural awareness workshops are also proving increasingly popular with larger organisations, particularly during Reconciliation Week and NAIDOC Week. Valerie is now exploring opportunities to expand these offerings throughout the year and diversify into the tourism sector ahead of the Brisbane Olympics.

In addition, Maudu Collective has showcased its products at several major events in 2025, including TSBE Chef’s Table, the Meet the Makers Trade Show on the Sunshine Coast, Supply Nation Connect, and the Fine Food Trade Show in Sydney. Valerie presented her business exceptionally well at each event, with strong product interest, on-the-spot sales, and valuable new client connections.

Lidiar Group is incredibly proud to be part of Valerie’s journey and to support the continued growth of Maudu Collective through the Shell QGC Indigenous Business Support Program in collaboration with TSBE Business Navigator Program. We look forward to seeing Maudu Collective continue to thrive and share culture with communities and businesses across Australia!

By Olenka Garavito Ruas, Associate – Environmental Consultant

Sustainability commitments are now commonplace across infrastructure, resources and industrial sectors. Net Zero targets, ESG frameworks and sustainability reports are part of everyday business language.

The real test, however, is not the commitment itself. It is whether organisations have the environmental capability and operational controls to deliver on what they have said they will do.

This gap between intent and implementation is where many sustainability strategies falter. High-level goals are set, but systems, processes and measures are not always in place to support them. For project teams and operations staff, sustainability can feel abstract or disconnected from day-to-day decisions when it is not clearly linked to actual environmental impacts, compliance obligations and on-site practices.

In practice, sustainability only works when it is grounded in how an organisation actually operates and how environmental impacts are managed on the ground.

Environmental management systems, approval conditions and compliance processes are often seen as technical requirements. In reality, they form the backbone of credible sustainability performance. Without clear procedures, defined responsibilities and measurable indicators, sustainability remains difficult to demonstrate or defend, particularly when environmental performance is questioned by regulators, communities or Traditional Owners.

This is particularly evident in sectors such as mining and large-scale industry, where operations function like small, self-contained cities. Energy use, water management, waste streams, workforce behaviour and community interfaces are all interconnected. Environmental impacts accumulate across systems and small changes, implemented consistently, can have a significant cumulative impact on ecosystems, waterways and local landscapes.

The most effective sustainability strategies are those that focus on what matters most for that organisation and that project. This means identifying material environmental risks, receptors and pathways, rather than attempting to address everything at once. It also means designing systems that teams can understand and use, rather than overwhelming them with documentation.

There is also increasing pressure from outside the organisation. Investors, lenders and rating agencies are asking more detailed questions about environmental performance and climate risk. They are looking not just for targets, but also for evidence of environmental controls, monitoring data, and demonstrated improvement over time. This has shifted sustainability from a reporting exercise to an operational one.

For many organisations, this creates an opportunity. Strong environmental systems can improve efficiency, reduce risk, and support better decision-making. They can also help attract and retain people who want to work for organisations that take environmental responsibility seriously.

Sustainability is no longer about saying the right things. It is about building the capability to prevent harm, manage impacts, monitor performance and continuously improve environmental outcomes over time. When that foundation is in place, commitments become credible, and outcomes become achievable.

Originally trained in electrical and electronics engineering, Steve moved to Australia in 2016 and began working in construction. From there, his career shifted into remediation and contaminated land work. As he describes it, this was about fixing what had already gone wrong.

“That work was important,” Steve says, “but it was very reactive. You are repairing damage that has already been done.”

That realisation is what ultimately led him into environmental consultancy, and to Lidiar Group. Today, Steve works at the front end of projects, helping clients identify and manage environmental risks before they become costly, disruptive or irreversible.

In his role as an Associate Environmental Consultant, Steve supports clients across renewable energy, government, and private-sector projects. His work includes environmental compliance auditing, environmental management systems, ISO 14001 support and the development of practical documentation that can be implemented on site, not just filed away.

A key part of Steve’s role is helping project teams understand what environmental approval conditions actually mean in practice.

“Most clients want certainty,” he explains. “They want to know what they can do, what they cannot do, and how to avoid compliance risks that could stop a project.”

Steve has particular experience working on renewable energy projects, including large-scale solar developments where environmental management, biodiversity protection and community engagement all intersect. He has also seen firsthand how good environmental planning can shift perceptions, moving environmental management from a cost burden to a source of real value.

“There are projects where environmental planning has created revenue streams,” he says. “That is when the conversation really changes.”

What ultimately drives Steve is the belief that infrastructure built today should not limit the choices available to future generations.

“I am not an activist,” he says, “but if we are building assets that are meant to last 100 years, we have a responsibility to make sure what they are built on can last just as long.”

Known for his calm, practical approach and clear communication style, Steve works closely with contractors, project directors and regulators to navigate complex legislation and reduce risk.

“Environmental mistakes are always expensive,” he says. “It is much better to think ahead.”

“What stood out to me was Lidiar Group’s mission to connect and empower clients by energising and strengthening their capabilities,” she says. “That really aligned with what I was looking for—being part of work that supports people and makes a lasting impact.”

An Experience That Exceeded Expectations

Lorrayne joined Lidiar Group expecting a fast-paced workplace. What she didn’t expect was the high level of trust and collaboration she experienced from day one.

“It’s exceeded my expectations,” she says. “I was able to contribute to meaningful work immediately, which is so important to me. The team is welcoming, and the leadership is approachable and supportive. You feel empowered to make decisions but also know that help is there when you need it.”

Working on Projects That Matter

One of the most rewarding aspects of Lorrayne’s time so far has been her current project – working with the commercial team of a defence company to review and improve processes.

“It started as a process review,” she explains, “but it’s grown into something much broader, including improving engagement with sales, increasing visibility, and strengthening data security. It’s strategic, but also very hands-on. I enjoy that mix.”

Her day-to-day work varies, which she enjoys. “It’s a dynamic environment. You have your schedule, but the direction can shift depending on client needs. I like the challenge of that.”

Developing Processes with Purpose

Lorrayne’s background in engineering gave her a structured way of thinking, but working at Lidiar Group has helped her develop a deeper understanding of how people and culture shape success.

“Processes don’t exist in isolation,” she says. “You’re not just writing documents – you’re influencing how people work and interact. It takes time and involvement. The most rewarding part is when people understand the value and start to adopt the changes in a way that makes their work better.”

While she enjoys developing processes and systems – she’s currently building one in SharePoint – Lorrayne says she’s not overly rigid in her approach. “I’m organised in my own way, but I’m also flexible. I try to think about what works best for the whole team, not just for me.”

A Culture That Supports Learning and Collaboration

For Lorrayne, one of the best aspects of working at Lidiar Group is the learning culture.

“Development here happens naturally and intentionally,” she says. “You’re encouraged to take ownership, work on complex projects, and bring your strengths to the table while developing new ones.”

That support also comes from her colleagues. “The people here are knowledgeable, professional, and always looking for ways to improve how we do things. It’s collaborative, not competitive. That really stood out to me during the interview process, and the reality has been even better.”

Advice for Others Considering Lidiar Group

If someone is thinking about joining Lidiar Group, Lorrayne has simple advice:
“Come ready to grow, collaborate, and learn something new every day.”

As long-term supporters and partners of the region, which includes Gladstone, Lidiar Group’s Niall Callan examines the trends, risks, and opportunities shaping Fitzroy’s major projects landscape.

Heavy Dependence on Mining and Heavy Industry

Fitzroy’s economy has long been dominated by mining and heavy industry. This legacy continues, and the sector contributes a significant share of the region’s major projects pipeline. However, this reliance poses challenges:

• High Concentration of Unfunded Projects: Fitzroy accounts for a substantial portion of Queensland’s total unfunded projects, placing the region’s future economic growth at risk. Many of these resource-related initiatives face uncertainty due to fluctuating global commodity prices and shifting investment regimes.
• Regulatory Hurdles: Lengthy approval processes further compound risks, delaying critical projects and impeding timely progress.

Balancing Risks with Economic Potential

Despite these challenges, the Fitzroy region stands at a crossroads of economic transformation. The QMPPR highlights significant unfunded projects that, if realised, could greatly enhance regional employment, infrastructure, and overall economic activity.

• Strategic Investment Needed: Addressing the funding gap for major projects is essential. The private sector will play a key role, but government support, including streamlined regulatory approvals and funding mechanisms, remains vital.

Infrastructure Projects on the Horizon

Several large-scale infrastructure projects are set to impact Fitzroy:

• Pipelines and Utilities Projects: Continued investment in non-water utilities, including pipelines, reflects growing demand for resilient and future-proof infrastructure.
• Mining and Heavy Industry Projects: While these remain a focal point, ensuring their viability through efficient approvals and consistent funding commitments is crucial.

Labour Market Implications

With an anticipated increase in infrastructure projects, the Fitzroy region will see heightened demand for skilled labour. Ensuring a skilled workforce is available to meet this demand presents both a challenge and an opportunity:

• Upskilling and Training: Investing in regional workforce development will be key to maximizing the potential of future projects.
• Collaboration with Industry and Education Providers: Enhancing collaboration to deliver training tailored to regional needs will further bolster Fitzroy’s capacity to meet project demands.

Navigating Global Economic Conditions

Fitzroy’s dependence on resource-based projects makes it particularly susceptible to global market dynamics. Variability in commodity demand and pricing can impact the viability of key projects. To mitigate these risks, a more diversified economic base, coupled with robust infrastructure planning, will help alleviate the risks of previous boom and bust cycles.

Building for the Future

The Fitzroy region’s inclusion in Queensland’s major project pipeline signals its critical role in the state’s infrastructure and economic future. By addressing funding uncertainties, streamlining approvals, and investing in workforce development, Fitzroy can capitalise on its potential. Collaboration among industry stakeholders, government bodies, and the community will be essential in navigating these challenges and ensuring a bright future for the region.

Lidiar Group has a rich history of supporting projects across the region, bringing technical skills, project understanding and resourcing, and key personnel to project teams to ensure success. Contact us to learn more about how we can support the next 5 years of investment and development in Fitzroy.

In his analysis, Darren Cave looks at what the next 5 years mean for the Sunshine State and a ‘golden decade’ of infrastructure investment.

A Bright, Yet Complex Outlook

With a pipeline valued at a record $103.9 billion, major infrastructure activities in Queensland are set to surge, particularly from 2025/26 through 2027/28. This forecast signals robust growth, driven largely by investments in transport, water, and energy infrastructure. Projects tied to the 2032 Brisbane Olympic and Paralympic Games are among the pivotal contributors to this expected activity boost. However, the rise comes with caveats, as the overall growth is tempered by constraints such as funding uncertainties, regulatory bottlenecks, and escalating construction costs.

Funding Realities: Balancing the Funded and Unfunded

The QMPPR highlights a critical gap: while $62.4 billion worth of projects are funded, an estimated $41.6 billion remains unfunded—a 10% increase compared to last year. This unfunded portion represents a substantial risk to project continuity and underscores the urgency for improved funding mechanisms, streamlined approval processes, and strategic partnerships between public and private sectors.

Regional Disparities and Mega Projects

Significant variation exists across Queensland’s regions. Areas like Cairns, Brisbane, and the Gold Coast have seen reductions in funded projects, while Wide Bay leads with substantial investments such as the Borumba Pumped Hydro Project. The trend toward mega projects (valued at over $1 billion) is noteworthy, as these make up 58% of funded pipeline activity. While beneficial for economic impact, this trend raises concerns about access for smaller contractors, who may struggle to engage with such large-scale developments.

Rising Costs and Labour Challenges

Cost escalation remains a pressing issue. Though international factors have somewhat eased, domestic pressures—primarily driven by labour and material costs—continue to inflate project budgets. The engineering construction price index grew by 4% in 2023/24. Furthermore, a tightening labour market, marked by high demand for skilled workers, poses risks to project timelines and costs. Innovative solutions to attract and train new talent are vital for sustaining the sector’s growth.

Collaboration and Planning are Key

To ensure Queensland’s infrastructure vision becomes a reality, effective collaboration between industry and government is paramount. Optimising procurement, aligning regulations, and adopting a coordinated approach to public and private investments are essential strategies. These measures will not only foster value-for-money outcomes but also enable the industry to meet ambitious targets and navigate economic fluctuations.

Critical Sectors

Within the sectors Lidiar Group supports, there are positives across the board, but the challenges of resources, labour, skills and funding seen across the entire sector are clearly apparent in this area.

Electricity Sector

• Significant Investment: Queensland’s pipeline for electricity projects is largely driven by investments in renewable energy, highlighting the state’s commitment to transitioning to clean energy sources. Renewable electricity generation projects make up a notable portion of the overall major projects pipeline.
• Labour Demand: Due to the geographic distribution of renewable projects, regions such as Fitzroy, Wide Bay, and Mackay–Isaac–Whitsunday will experience heightened labour demands.
• Challenges and Opportunities: The transition to renewable energy infrastructure in Queensland reflects a period of change, with challenges around workforce availability and skills development in regional areas where projects are being delivered.

Pipelines and Telecoms

• Utility Growth: The non-water utilities sector, including pipelines and telecoms, contributes significantly to the funded portion of the major project pipeline. This sector is characterised by strong private-sector involvement, which is vital for delivering on Queensland’s infrastructure goals.
• Funded and Unfunded Status: A considerable share of pipeline projects within this sector remains unfunded, posing risks and uncertainties, especially in terms of long-term project delivery and investment stability.
• Infrastructure Needs: Investment in telecommunications infrastructure supports regional connectivity and growth, aligning with broader goals for integrated infrastructure solutions across Queensland.

Mining and Heavy Industry

• Concentration in Regions: The Fitzroy and Mackay–Isaac–Whitsunday regions, heavily focused on mining and heavy industry, account for 55% of total unfunded work. The sector faces notable risks related to global commodity market fluctuations and investment regime shifts.
• Private Sector Dominance: The private sector leads this industry’s projects, making up 50% of private unfunded work in the pipeline.
• Infrastructure Challenges: Mining projects often experience delays due to complex regulatory and approval processes, emphasising the need for strategic government and industry collaboration to streamline investment pathways and approvals.

Conclusion: The Path Ahead

As Queensland braces for an era of transformative development, industry stakeholders must rise to the challenge of balancing growth, efficiency, and inclusivity. By addressing funding gaps, engaging all tiers of the industry, and enhancing productivity, the state can capitalise on its rich project pipeline to create a lasting legacy, and Lidiar Group looks forward to supporting our clients and projects with resources, skilled personnel and end-to-end project experience.

Lidiar Group’s Candy Lopez is an Associate Engineer who has built a career mixing science and art to create schedules that support major projects across renewables, oils and gas, industrial and energy projects.

For our latest blog, Candy shares her experience across multiple projects and outlines the importance of art and science in scheduling complex works.

“As our tools and datasets have evolved, so too have our capabilities to produce more complex, precise, and adaptable schedules,” said Candy.  

“Yet, the essence remains: every successful schedule begins with simplicity and accuracy. Ensuring the key information, project details, historical data, past performance metrics, predicted costs and more will set us on the right path. With tools such as MS Project, Primavera P6, Power BI and highly detailed data available to us, schedules can be augmented to deliver real-time project feedback, drive timely decisions, and ultimately impact bottom-line savings.”

“This information can then be used to empower projects teams, provide real-time information to leaders on site and at head office and allow for decisions to be made with strong supporting information and data analysis when issues arise, rather than months down the line, which can involve costly rework or remediation.”

“The trick is understanding that the process combines art and science. Data and insights drive science, and art comes through communication, stakeholder engagement, leadership, and team building because the best data in the world is wasted science if the art of collaborations is ignored.” 

Here is a look at some of our recent project experiences and the tools we’ve used to navigate this dynamic landscape.

Tools of the Trade

Our recent projects have relied heavily on sophisticated scheduling and data analysis software, including:

• MS Project: A robust tool for creating detailed, task-based project schedules.
• Primavera P6: Ideal for complex, large-scale projects requiring detailed task dependencies and critical path analyses.
• Power BI: A visualisation tool that transforms project data into actionable insights through dynamic reports and dashboards.

Project Highlights:

The Solar Farm Project

This schedule was a prime example of reactive and proactive project management working in tandem. Tasked with addressing disruptions caused by other contractors, we constructed a detailed schedule that enabled real-time assessment of the client’s strategic actions to minimise delays. Daily updates kept stakeholders informed, facilitating quick responses to evolving project conditions. A unique aspect of this project was the reverse-engineering of the schedule—relying on past documents and correspondence to build a living history of project progress. This unconventional approach enabled us to understand our present status clearly and chart a forward path effectively.

2. Preparing for Operations at a Plant (PCF)

Our team created a forward-looking schedule to identify and achieve operational readiness milestones. By dissecting relationships between tasks and setting realistic targets, we advanced progress to over 70% completion ahead of schedule. Task-specific feedback reports provided to team members were instrumental in maintaining momentum and reducing stress. Additionally, enhancements to the manager’s reports allowed for seamless inclusion in broader presentation materials, aligning the team’s efforts with organisational goals.

3. Field Gas Development Schedule

This complex scheduling task involved integrating two independent scopes—the appraisal phase and full field development—into a cohesive timeline using Primavera P6. Overlapping tasks necessitated a delicate balancing act, which we managed by incorporating risk scenarios. This dual-schedule integration enabled the project board to assess potential challenges and make informed decisions during periodic reviews.

4. Operation and Maintenance Projects

Daily high-risk activities across multiple projects demanded a rapid-response scheduling approach. Our solution was to relocate crews strategically, accelerating nearby projects to recover time lost on paused operations. This nimble, data-driven scheduling approach optimised resource allocation and project continuity.

5. Development of Overseas Project Feasibility

Sometimes, speed is paramount. We prepared a comprehensive project schedule for an overseas feasibility project on the same day as our data intake. Despite the short turnaround, the detailed plan allowed stakeholders to clearly visualise key milestones and execution strategies. The successful inclusion of this schedule in a presentation underscored its value as a communication and planning tool.

The Evolution of Scheduling: From Simplicity to Real-Time Complexity

“As illustrated by these projects, modern scheduling has become a sophisticated art driven by data and real-time adaptability,” said Candy.

“By leveraging tools like MS Project, Primavera P6, and Power BI, we transform schedules into living, breathing entities — ones that evolve alongside project demands, drive decision-making, and add tangible value to outcomes.”

“While the complexity can be staggering, our focus remains on creating accurate, intuitive, and actionable schedules. After all, at the heart of every successful project is a well-crafted plan that translates into measurable results, which results in savings through improved efficiency, quicker decision making, more accurate timelines and controlled project costs.” If you want to learn more about how we can integrate art and science into your next project schedule and plan, contact Niall Callan via

“While the complexity can be staggering, our focus remains on creating accurate, intuitive, and actionable schedules. After all, at the heart of every successful project is a well-crafted plan that translates into measurable results, which results in savings through improved efficiency, quicker decision making, more accurate timelines and controlled project costs.” If you want to learn more about how we can integrate art and science into your next project schedule and plan, contact Niall Callan via

“While the complexity can be staggering, our focus remains on creating accurate, intuitive, and actionable schedules. After all, at the heart of every successful project is a well-crafted plan that translates into measurable results, which results in savings through improved efficiency, quicker decision making, more accurate timelines and controlled project costs.” If you want to learn more about how we can integrate art and science into your next project schedule and plan, contact Niall Callan via 1300 LIDIAR or connect with him on LinkedIn to arrange an informal discussion.

1. Time
2. Scope Creep
3. Market Conditions
4. Risk Allocation
5. Developer Approach

Escalation Protection

At Lidiar Group, to safeguard against escalating costs, we take a proven approach that minimises the risk of escalation through a ten-stage process that has worked for our clients across multiple industries, markets and project types:

1. Ensure the business case is solid and secure funding to drive the project forward
   A robust business case underpins the entire project, aligning the project’s purpose, benefits, and financial viability. Without it, securing funding becomes difficult, and the project may falter early. A comprehensive analysis of market conditions, potential risks, and projected returns is crucial for garnering stakeholder confidence and financial backing.
   Example: The Melbourne Metro Tunnel project initially faced challenges due to an underdeveloped business case, resulting in project scope changes and subsequent cost increases.
2. Conduct a thorough, first-principles project cost estimate, including contingencies and escalation allowances, while addressing key risks as early as possible
   Starting with a first-principles approach to cost estimation means building your budget from the ground up, accounting for every component and potential risk. Contingencies and escalation allowances safeguard against unforeseen developments, and addressing key risks early mitigates their potential to impact later stages.
   Example: Sydney’s WestConnex road project saw cost blowouts, in part because early estimates didn’t fully account for cost escalations related to land acquisition and contractor disputes.
3. Finalise all necessary approvals and confirm funding is in place
   Approvals can often be time-consuming, and delays here can create a domino effect throughout the project. Ensuring all planning, environmental, and regulatory approvals are secured early gives the project a clear path forward. Confirming funding at this stage also ensures that the project isn’t delayed while awaiting financial arrangements.
   Example: The Carmichael coal mine project in Queensland faced significant delays due to environmental and Indigenous land use approvals, which pushed timelines and increased costs.
4. Perform upfront studies—surveys, geotechnical investigations, environmental checks—to refine design requirements
   Skipping or rushing through essential preliminary studies can lead to major redesigns later, with knock-on effects on costs and timelines. Thorough site investigations and environmental assessments help avoid costly surprises during construction.
   Example: The Inland Rail project has faced delays due to unforeseen geotechnical issues that could have been identified earlier through more comprehensive studies.
5. Progress the design to at least 80% completion to gain confidence in the project’s scope
   Advancing the design to 80% completion before tendering provides more certainty about the project’s scope and potential costs. At this stage, the design should be well-developed, reducing the risk of scope changes or major variations later.
   Example: The Sydney Light Rail project was significantly delayed and over budget due to changes in scope and the need to redesign key components after construction had started.
6. Develop clear, detailed project specifications and plans
   Ambiguous or incomplete specifications often lead to misunderstandings and disputes between developers and contractors. Detailed plans clarify expectations, timelines, and deliverables, helping ensure smooth project execution.
   Example: Brisbane’s Cross River Rail project encountered early challenges with contractors due to misalignment in expectations from incomplete project specifications.
7. Pre-qualify contractors, selecting 3-5 that have the capability and capacity to deliver
   Selecting the right contractors is crucial. By pre-qualifying potential contractors, you ensure they have the necessary experience, financial capacity, and expertise to deliver on time and within budget. Vetting contractors based on past performance on similar projects can also mitigate risks.
   Example: The Snowy 2.0 project has experienced challenges due to contractor delays and issues with capacity, highlighting the importance of pre-qualification.
8. Draft fair contract terms reflecting market realities and appropriately allocate risk
   Contract terms should not only be fair but also reflect the current market conditions. Overloading contractors with excessive risk can lead to inflated bids or disputes down the line. Instead, risks should be shared appropriately, with pain-share/gain-share mechanisms in place to handle unforeseen developments.
   Example: The new Western Sydney Airport project successfully managed contractor relationships through clear and fair contract terms, avoiding many of the pitfalls of projects like Sydney Light Rail.
9. Once all elements are in place, tender competitively, ensuring readiness to proceed
   Competitive tendering ensures you’re getting the best value for money, but only if all the preparatory work has been completed. Going to tender prematurely, with incomplete design or unresolved approvals, can result in later delays and cost overruns.
   Example: The Melbourne West Gate Tunnel project experienced significant delays because tenders were awarded before all environmental approvals were finalised, resulting in costly rework.
10. Award contracts promptly to avoid delays and changes during tender validity periods
    Delaying contract awards can lead to price changes or contractors withdrawing from the tender process. Staying within tender validity periods keeps contractors committed to their bids and helps maintain cost certainty.
    Example: The Sydney Metro project experienced issues when delays in contract awards led to some contractors revising their bids due to changing market conditions.

Benefits of This Approach

By following this structured approach, project developers can significantly reduce the likelihood of cost escalation and time overruns. Early identification and management of risks through thorough planning, pre-qualification, and clear contract terms build confidence in both developers and contractors. The result is a more predictable project outcome, with fewer disputes, fewer variations, and stronger relationships between all parties involved.

Furthermore, projects with strong foundations in solid business cases and comprehensive design development tend to attract better funding options, as stakeholders see the project as well-managed and less risky. This leads to better financing terms and, ultimately, greater financial success for the project.

This approach demands expertise, upfront investment, and patience, but it significantly reduces the risk of unexpected cost increases. Having the right in-house team or working with experienced experts can make all the difference in delivering a project on time and within budget, and at Lidiar Group, we are here to help ensure that your project can proceed with confidence and reduce the risk of escalation and blowouts to time and budget.