In 2005, Diona entered into a challenging relationship with Agility Management to construct 13 kilometres of the 30.5 kilometres of Sydney’s proposed high pressure primary gas main loop. The overall pipeline project was to be laid from Liverpool to Tempe with Diona’s section from Riverwood to Tempe. This upgrade was required to secure the future gas supply to residents and businesses within the local Sydney area.
Agility, now known as Jemena, initially proposed the overall installation of this 30.5 kilometre gas pipeline and nominated the pipeline’s potential route. The completed product links Agility’s existing gas mains and will create a continuous loop, providing an alternative natural gas supply into the centre of Sydney. Previously there was only one gas feed into Sydney and as a consequence, any malfunctions resulted in major disruptions to the City’s gas supply. A number of contracts were set up to deliver the project, including Diona’s section which was to be completed under an alliance agreement.
Contractually, the key concern was to ensure the alliance relationship was secure by adopting an effective framework to be maintained throughout the project. An alliance focus was established by combining the resources of committed management and construction staff. Prior to the production of works, a target cost estimate was required to be agreed upon by all parties. This was combined with a risk and opportunity budget to cover potential overruns associated with the inherent issues of pipeline construction.
The alliance harboured a focus on values for safety, finance and setting realistic delivery targets. Time was not a major concern to the project as Diona recognised the key matter was to avoid disruption and resolve conflicts immediately as they arose in order to promptly settle any issues.
April 2006 - April 2007