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Case Study

Logan Housing Renewal Initiative

Aerial view of houses

Creating a self-sustaining public housing model for Queensland

The Situation

Department of Housing and Public Works needed to develop and deliver a self-sustaining project – the Logan Housing Renewal Initiative - for Queensland under a modified outsourcing structure. Initially our consultants worked on the bid evaluation committee the initial submissions. We were then appointed to:

  • Advise on the development of the commercial and financial approach

  • Produce the necessary commercial principles and documentation

  • Manage aspects of the bidding process, including undertaking a significant skills transfer process

Approach

Our consultants provided commercial and financial advice on the development of commercial principles and documentation which provides the basis for the provision by the private and not-for-profit sectors of a broad-range of housing services. This included affordable housing stock, maintenance and facilities management and tenancy services for new and existing housing stock. 

We also provided advice on the development of the proposed commercial arrangements. This included the development of the risk regime, output specifications, payment and performance regime (incorporating maintenance and facilities management requirements), and the process and criteria for portfolio management and property development. 

In addition we assisted with:

  • Financial modelling requirements including the development of bid financial model pro-forma sheets

  • Preparation and facilitation of interactive workshops with proponents and assessing proponent responses

  • Tender evaluation and the negotiation process to determine a preferred proponent

  • Project documentation and terms sheet development

Results 

Advisian worked with the Department of Housing and Public Works on this important project by developing a robust commercial structure and delivery process to better:

  • Manage risk transfer

  • Quarantine State assets

  • Enable deliverability to clearly stated outputs and criteria

  • Define any State financial contribution and financial model

  • Create a self-sustaining public housing model

Working closely with the Department of Housing and Public Works we developed a robust commercial structure and delivery process

 

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