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RP Infrastructure provided project management services for the redevelopment and expansion of Lotte Duty Free’s Arrivals store at Melbourne Airport’s International Terminal 2, growing the retail footprint from 1,300 to over 1,700 sqm.

Since becoming the key Duty Free retail tenant at Melbourne Airport in 2023, Lotte (Tenant) and Australia Pacific Airports Melbourne (Landlord) embarked on the redevelopment and expansion of retail offerings in the International Terminal 2 (T2), including expansion of the existing Arrivals store.

Project Overview

Early works were strategically commenced five months prior to main works, with construction of a new services switch-room, Department of Agriculture Health room, and an escape corridor. This preparation enabled the Main Works to proceed, which lasted 14 months and overlapped a T2 amenities upgrade project adjacent to the Duty Free site. The amenities upgrade had to be finished and operational before the demolition of existing public amenities within the Duty Free refurbishment site could proceed.

Main works were staged to allow Lotte Duty Free to keep trading during construction, first from part of the existing store and later from new sections as they opened.

A key design feature was a new, centrally aligned public corridor to allow arriving international passengers to pass safely through the Duty Free area. The existing store was approximately 1,300 sqm and expanded to over 1,700 sqm, with an enhanced 8.8 metre-wide clear corridor providing more direct access for passengers, airline and Border Control staff, improving the overall experience.

Our Role

RPI provided project management services on behalf of Australia Pacific Airports Melbourne throughout the tender, permit and construction stages. RPI was involved with competitive tendering, tender evaluation, clarifications and recommendations, contract administration including variation and Extension of Time assessment, monthly progress and financial reporting, permit approval, and variation management throughout the construction phase.

Our team provided information that enabled the client to maintain and update the Project Execution Plan and Monthly Project Status Updates. The project budget was managed by monthly Project Cost Budget updates with the Australia Pacific Airports Melbourne Program Manager and appointed Cost Consultants.

Key Challenge

Effective communication with all stakeholders was vital throughout the project. RPI worked closely with the client and key stakeholders, the tenant’s consultants, and the Contractor to manage a complex construction program that involved over 70 On-Air notices to keep everyone informed about disruptive works. Many works were performed at night due to demolition, hazardous material removal, and site penetrations.

A major challenge was addressing unforeseen conditions in the existing building that caused costs and delays. RPI assessed these issues and advised the client, helping to limit delays. Through collaboration and active communication, RPI ensured the Duty Free tenant could fully reopen within the revised schedule, benefiting all parties involved.

Base build and fit-out works were delivered concurrently, requiring a Development Agreement Contract between key parties to allow works to occur outside Australia Pacific Airports Melbourne’s normal process. Careful coordination of design and integration reduced the timeframe for construction to 14 months, saving the project nine months in total.