Cica Group - Projects - Legacy Way Tolling System Implementation

Toowoomba Second Range Crossing O&M Strategy

The Nexus consortium

Toowoomba Council is establishing a new 41km toll road bypassing the city to the north. Nexus Consortium, the successful toll road tenderer, engaged Cica Group to develop an independent operations and maintenance O&M strategy and cost model for the Toowoomba Second Range Crossing for use as benchmarking against the selected operations and maintenance provider.

Toowoomba Council is establishing a new 41km toll road bypassing the city to the north. Nexus were one of three tenderers competing for the design, build and operate contract over a 25-year concession period. The Nexus consortium was successful and a contract executed in June 2015.

Cica Group’s scope included:

  • Reviewing all State tender documentation with regards to the road design and operational requirements.
  • Development of a strategy to operate and maintain the road.
  • Development of a workforce and subcontractor business model.
  • Development of a cost model and estimating all operating and lifecycle costs associated with operating and maintaining the road for 25 years.
  • Presentation to the major investors to explain the methodology, results and justification.

The most significant challenge was that Cica Group needed to complete the operations and maintenance strategy and cost model in a short space of time, and present to investors while the design of the road, tunnel and electrical systems were still evolving. This limited the availability of much of the information required to inform the strategy and modelling.


By using it’s existing experience in road construction, operation and maintenance, Cica Group developed a comprehensive cost model and report with a recommended strategy to operate and maintain the road while best meeting the State’s various KPIs for safety and quality. Cica Group also was able to make recommendations on the frequency and cost of significant lifecycle replacement tasks such as road resurfacing.

The detailed cost model included estimates of all labour tasks, skills sets, workforce rosters, penalty rates, subcontracting packages and capital purchases was used to inform and validate the strategy.


Cica Group delivered a clear business model and associated costings to be able to benchmark against the internal business model and subcontractor prices. By using Cica Group’s recommendations, Nexus leveraged contract negotiations with sub suppliers that yielded multimillion-dollar savings. Nexus were able to assure the investors (managed through the Plenary Group) that they had a clear and low risk strategy on how to operate and maintain the road including robust cost estimates.

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