Question regarding the engagement and payments to Jacobs Group (formerly Sinclair Knight Merz) for services related to the Pilbara Underground Power Project (PUPP). The answer details the engagement history, payments, and contract status.

AnsweredQoN 4916Legislative Assembly
Asked
16 February 2016
Portfolio
Energy

QuestionView source ↗

I refer to Horizon's engagement of Jacobs Group (Australia) Pty Ltd for services relating to expenditure and costs associated with the Pilbara Underground Power Project, and ask: (a) on what specific date was Jacobs Group engaged by Horizon; (b) what is the total amount of all monies paid to Jacobs Group since the date of engagement outlined in (a); (c) what amount of time in hours or days has Jacobs Group provided services to Horizon since the date of engagement; and (d) has a long-term contract with Jacobs Group been negotiated, and if yes: (i) on what date was the long term-term contract signed; and (ii) what is the period of the contract?

AnswerView source ↗

Answered
15 March 2016
Responded by
Minister for Energy
Response time
28 days
(a) Jacobs Group (Australia) Pty Ltd (then Sinclair Knight Merz) was first engaged for cost reporting and forecasting services on the PUPP in February 2012.
(b) $647,801
(c) Jacobs are paid on delivery of agreed works and not an hourly basis.
(d) Yes
(i) A long term contract was negotiated with Jacobs Group (Australia) Pty Ltd (then Sinclair Knight Merz) for cost reporting services on the PUPP in December 2012. Prior to this time, engagement for cost reporting services on the PUPP was on an adhoc basis.
(ii) Jacobs Group (Australia) Pty Ltd are currently engaged on a month-by-month basis but a new long term contract for cost reporting services and ongoing assurance to the external steering committee on the PUPP is being negotiated. It is expected to be in place by the end of March 2016 and will run through till project completion, currently scheduled for June 2018.

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