Federation Square Management’s objective

To create the largest inner-city urban precinct development by the Victorian Government in the last 40 years, with an urban statement suitable for its prominent location. 


The design and construction of Federation Square was highly complex. It included construction of a base building floorplate over Flinders Street Station.

Johnstaff’s role

After substantial claims were made against the State Government by the Managing Contractor and various trade contractors, Johnstaff was engaged to provide specialist contractual and programming analysis, as well as alternate dispute resolution services for this unique and highly complex project. Johnstaff also provided value management advice to assist the State Government to reign in spiralling project costs that were attributable to the project’s unique architectural design.  

Federation Square, Melbourne, Victoria

Addressing the issues

To properly assess the validity and value of more than $60 million of trade contractor prolongation claims, Johnstaff provided specialist contractual and programming analysis to establish the true contractual entitlements and successfully negotiate settlements.

All claims were resolved without litigation for a total of $5 million. This represented a significant saving to government compared with $30+ million valuations prepared by other parties.

Johnstaff subsequently played a key role in the alternate dispute resolution of a substantial contractual claim made by the Managing Contractor against the government.

Johnstaff facilitated several major value management workshops with the Managing Contractor, senior government and other relevant stakeholders.

map of the project location


  • Trade claims totalling over $60m were settled for approximately $5m, 85% less than valuations prepared by other parties

  • Litigation between the government and the Managing Contractor was avoided

  • Further budget overruns avoided using value management workshops with the contracted parties