In a joint venture with Baulderstone Hornibrook, BBS will design and construct balance of plant and the installation of client-supplied gas turbines. The peaking power station will be New South Wales’ newest and most efficient peaking power station, delivering clean and cost-competitive electricity across the state.

Owned by Newgen Power, the gas-fired power station will not only aid in meeting the power needs of a growing population, but will also play a role in reducing greenhouse emissions. Gas-fired power has a minimal impact upon the environment compared to its coal equivalent, although it is more expensive to produce. Estimates suggest that greenhouse gas savings from the station will be comparable to taking 16,000 cars off the road each year.

“The peaking station is world’s best practice, and once complete will be the largest gas-fired power station to be constructed in NSW,” said Mark Elliott, Managing Director BBS. “This project is a significant investment in the local community and will provide employment opportunities for the region which will peak at around 200 in January 2008.”

Over the next 18 months, BBS and Newgen Power will be working closely with local authorities to minimise any impact on the Wagga community and maximise the opportunities the project will provide for local contractors and subcontractors.

Alliance partnerships

“For many contractors and their clients today, it is all about balancing appropriate service with reasonable price. To date, for us, the best way to do this has been to identify, understand and develop business models that focus on client’s needs,” says Mr Elliott.

BBS maintains a focus on long-term partnerships, innovation and understanding client needs. The company carries out asset maintenance and construction work in the gas, power, telecommunications, industrial and mining sectors.

The company’s alliance model grew from the success of the long-term contract providing gas maintenance services to the Multinet Gas network in Victoria. “If you look at the past two years, the trend towards privatisation and outsourcing has seen the relationship between clients and contractors move from that of a master-servant into a partnership or alliance-type relationship,” says Mr Elliot.

“When a particular service has been outsourced for, say, 10 to 15 years – and initial cost savings booked and customer service levels reached – clients and contractors start to explore what other benefits can stem from the collaboration.”

Mr Elliott firmly believes that this kind of creative, mutually beneficial collaboration between client and contractor is becoming common, especially as outsourcing evolves.

“It is not sustainable to demand service, but evaluate only on price. If the emphasis is only on the service, the costs to the client become prohibitive. If it is only on money, the service the contractor is able to provide is compromised,” he says.

“The alliance contracting model is a long-term solution that ensures the objectives of both parties are aligned, it means excellent working relationships are developed and innovation is fostered and celebrated.

“Relying on transparency in decision making, and the sharing of pain and gain, risks and rewards, partnering or alliance models, allow contractors and their clients to develop collaborative working arrangements that are non-adversarial and mutually profitable.

“By having an integrated approach, you create one team focused on one set of goals and one shared profit centre – balancing service with profitability.”