Financial Risks:

In Melbourne metro tunnel project, the tunnelling works involve more

significant risks. The tunnelling machines have to tilt or turn in particular parts
of the construction. This act will require more cost and labour than tunnelling a
narrow path. Melbourne metro tunnel project lanes are expected to have many
such issues, and this is a risk for the client.

After awarding the contract in November 2017 and amending the completion
date in February 2018 from 2026 to 2025 without any funding, works are to be
initiated at a faster rate and advanced technology is to be undertaken to
complete the project in the requested time, which can lead to financial risks.

Geological investigation can result in spending more money, and dealing with
the disposal of soil will incur more cost than anticipated. Large tunnelling
projects have faced cost blowouts due to geotechnical challenges in the site.

The client had changed the goals for the project after the contract was signed.
This has led to contentions with the client on the CYP consortiums behalf.

Ways to limit Risk:

This risk can be mitigated by avoiding constant changes in design and scope
during the later phases of construction and ensuring the contractors are capable
and experienced enough to carry out such vast projects. Melbourne Metro
tunnel project being private-public partnership has chances to end up in the
court or forcing opposition party to demand the cost blow out.
Environmental Risks:

Melbourne Metro Tunnel project involves many ecological risks, and improper
assessment can lead to difficulties. Environmental Risks Assessment is a part of
design development so that the prepared design confines to the alternative
approaches and are environment risk-free. Melbourne Metro project involves
nine kilometres of tunnel underground and mining between CBD North Station
to CBD South Station. The underground tunnelling can cause environmental
effects on society and is prioritized as client risk as environmental activists can
oppose this project which might cause delays.

The aspects that can be considered to cause an environmental risk are

Aboriginal Culture Heritage, Air Quality, Arboriculture, Aquatic ecology and
river health, Business, Greenhouse Gas emission, Groundwater, Ground
movement and land stability, Historical Cultural Heritage, Land contamination
and Spoil Management, Land Use and Planning, Landscape and Visual, Noise
and Vibration, Social and Community, Surface Water, Terrestrial Ecology and
Transport.

Removal or installing underground services, Getotechical investigation

underground can cause effects on the Aboriginal Culture from either removing
the complete component or partially affecting it. Relocating the aboriginal
cultural Heritage aspects can cause problems.

General earthworks, Handling or storage of spoil, Restoration of Surface areas

and Ventilation Shaft/ Exhausts involved in the construction can cause effects
on Citys Air Quality.

Inputs of surface sediments, chemical and rubbish from the construction zone
directly to river bodies and rainwater drainage will affect the aquatic ecology
and River Health. During the tunnelling process, infiltration can happen into the
tunnel causing extra works. Care should be taken to sustainably discharge off
contaminants collected during construction.

Construction of stations can involve demolition, and the Arboriculture has to be

maintained, ensuring trees around the construction portals are not affected,
which intern can also lead to destabilizing the soil.

It is Anticipated that relocation of SouthAfrican Souldiers memorial and

removal of trees near St Kilda Station will cause issues on Historical Cultural
Values of the state.
Ways to Limit Risks:

Environmental risks have to be assessed at an early phase of the project. Use

monitoring plans and consider preparing a design following the acts and
regulations confining to environmental issues. Developing an integrated
approach can be effective to limit the environmental risks.

Project Delay:

Late completion of project not only delays revenue earning, it also incurs
additional costs to use other facilities in the interim. Delayed projects inevitably
incur additional supervision and management costs and also damage the
reputation. Some of the reasons for late completion are:

 Changes in scope during execution

 Contractor receiving late access to information

 Poor performance of the contractor

 Project schedule was unachievable

 Latent conditions

A study done by (Zou, Zhang & Wang 2007) observed “Tight project schedule”
to be an influential factor on all project objectives. A lengthy schedule wrecks
cost benefit, therefore, clients should prepare a practical schedule allowing
sufficient but not excess time to accommodate all design and construction tasks.
In the construction phase, clients should develop a clear and appropriate plan,
envisage a contingency fund, secure standby cash flow in advance and control
schedule and cost. There is also political pressure to finish the project early
which might not be achievable and constant obstruction to the traffic flow
enrages public as stretches of roads are needed to be shut down for the purpose
of construction.

Ways to Limit Risks:

Contractors and subcontractors with robust construction and management

knowledge should be employed to minimize construction risks and carry out
safe, efficient and quality construction activities.
Reference:

https://www.roadsonline.com.au/metro-tunnel-goes-virtual/

https://www.theage.com.au/national/victoria/john-holland-wants-taxpayers-to-
cop-the-risk-of-a-blowout-on-north-east-link-20200304-p546u1.html

https://www.commercialrealestate.com.au/news/governments-will-have-to-take-
more-risk-on-big-projects-john-holland-949266/

https://www.theage.com.au/national/victoria/metro-tunnel-construction-to-get-
back-on-track-20191212-p53j79.html

https://www.score.org/blog/8-options-when-your-clients-refuse-to-pay-you

Zou, PXW, Zhang, G & Wang, J 2007, ‘Understanding the key risks in
construction projects in China’, International Journal of Project Management,
vol. 25, no. 6, pp. 601–614.