That $6bn TenderBook..., page-236

Pb

I agree with the gist of your post. As you suggest, some work that would probably be awarded to NWH may now include small add-ons that fall within RCR's bailiwick – e.g., tossing in the installation of signalling systems when building a railway line.

The seminal ideas of some initiatives may come from customers. In Australia, my first job was in sales, and for the final fifteen years of my working life, I was self employed. In both cases I obtained the vast bulk of my income via two initiatives suggested by customers, and both started from scratch and morphed into very profitable lines of business. Both had a few fillips from sub-initiatives that grew from my normal liaising with customers. RCR widens the field for potential initiatives, mainly because it has a track record in areas where NWH (including Golding) do not have one.

If you want to indulge in blue-sky flights of fancy, consider the contract that RCR has with Sydney Water (see https://www.rcrtom.com.au/latest-projects/sydney-water-facilities-renewal-panel/ ), and contemplate if this can be repeated elsewhere. There is no obvious limit to potential work to be had from water authorities, other than that competitors may be difficult to beat. To get a feel for more blue-sky, look at https://utilitymagazine.com.au/sydney-takes-smart-approach-to-water-metering-data/.

RCR Heat Treatment may simply be left to do what it does. The price paid for that arm of RCR is probably too small to justify Management giving it brainspace. Similar to ADB, there probably is internal work that can be added to external work to justify RCR Heat Treatment's existence.

I have no opinion on FAL, other than that nothing extraordinary has happened when one considers that the tunnel is being pushed through the known-to-be-unstable terrain of a shallow and well-known aquifer, and the original target completion date was more an issue of political posturing than the conclusion date of a reasonable critical path schedule. Management recently reaffirmed the November $1.1b revenue guidance, whereas Management may have hoped to eclipse that more generously than now is likely. I have no feel for GCY and Altura.

On contract wins, all I expect is that something will turn up (Sabine, that's called Micawberism). The winners of the Koodaederi packages of work whose ROI's closed in January are estimated to be announced in June/July. Some packages appear to not have got to ROI status yet, perhaps because they must wait for the survey package to be completed before there is sufficient information to issue ROIs. See https://gateway.icn.org.au/project/4142/koodaideri-project