The Nellie Hamilton Centre is Queanbeyan Council’s head office building, located on Crawford Street. Photo: Kazuri Photography.
An internal audit has found that a Capital country council had issues with outsourced project management and an outdated cost-benefit analysis during a major building project.
Construction started in late 2021 on the Queanbeyan Civic and Cultural Precinct, which includes the Nellie Hamilton Centre as its head office building.
The council’s website states that before the precinct was completed, Queanbeyan-Palerang Regional Council (QPRC) staff were housed in 11 buildings across the CBD.
During a recent meeting, councillors were handed an audit into the project’s construction.
Councillor Morgan Broadbent said the document’s release was a chance for QPRC staff to evaluate their internal processes.
“This was a major project. This has provided an opportunity, I think, for council to look back and reflect on what they did well and what they did badly and then make improvements from that.”
As a non-voting member of ARIC, he had requested the committee investigate the project.
“My reasoning was, obviously, we had a pretty substantial rate rise [happen] that was not due to, but associated, with this project.”
The full document, prepared by O’Connor Marsden, has not been released publicly.
But an executive summary has revealed QPRC had failings in several areas, which O’Connor Marsden judged to be ‘moderate’ in severity.
According to that summary, outsourcing of project management meant there was “reduced visibility and control” that the council could exercise, while oversight risks and value for money considerations were also impacted.
Risk management processes were also inconsistently applied, which affected the classification of ‘risks’ versus ‘issues’.
“Key risk information was not always visible to QPRC, undermining mitigation and information decision-making [opportunities].”
The audit noted the project cost came in over business case estimates (which was attributed to delays and unexpected expenses), while operating costs also came in higher.
Combined, the audit describes this as undermining the Nellie Hamilton Centre’s financial viability.
O’Connor Marsden also found that some expected benefits of the redevelopment hadn’t eventuated.
“[These] were only partially realised or remain inclusive, especially those relating to public perception and economic impact.
“While new community spaces and improved facilities were delivered, some soft benefits … could not be fully confirmed due to limited data.”
However, the audit praised the council’s engagement with stakeholders (including the Queanbeyan community) during and after the project.
It also found sections of its management were well-handled.
“In summary, the project followed a structured and well-documented approach to change control,” it states.
“There was clear evidence of process adherence, formal approvals, and delegated authority at all key stages … Appropriate change management processes were implemented, and approvals and delegations were adhered to.”
The council meeting papers also state that there have been changes to the council’s internal processes.
“As a result of the audit, ARIC is monitoring the implementation of identified improvements to council’s Project Management Framework and increased oversight of risk management reporting for future large-scale projects.”
During the meeting, a staff member told councillors that work on the new document was ongoing.
“That work was also related to the project management board [PMB], so with that now in place, the project management framework [will be a] key piece of work to be updated there.
“Once that’s concluded, we can release the new framework.”
Councillor Bill Waterhouse pressed for more information on how councillors would be informed of decisions and findings, saying that there appeared a risk updates and information would be submitted to the PMB and ARIC, but not to councillors.
“We get minimal detail from ARIC, but this board that we’ve just approved is going to be reporting through ARIC to us.
“Aren’t they going to filter out information that we’re not going to get details on?”
In response, a staff member said a dedicated committee would report to ARIC as an “additional level of governance” for major projects, alongside existing mechanisms for project oversight.
“Council needs to know that it has internal control frameworks in place … In regards to major projects, there’s major project reporting that needs to come back to council.
“As a separate item, the governance of the project management must be in place [alongside those reports].”
