Road maintenance contract renewal

AS roads

Council are planning to collaborate with NZTA to become part of their Network Outcomes Contract (NOC). The current road maintenance contract expires in June 2018.

Council's roading contract

Kaikōura District Council's road maintenance contract includes all roading maintenance, footpath maintenance, bridge repairs, periodic maintenance renewals and resealing. It is valued at around $1.5million per year.

Review requirement

Under requirements of the Local Government Act (S17a review), Council have completed a detailed assessment of delivery options going forward. The outcomes of this assessment indicated that joining NZTA's NOC would provide the greatest value to ratepayers.

Reasons for our choice

Council have chosen this option as the most viable way froward. The main reasons driving this outcome are:

  • The need for regular inspections by the contractor to identify immediate faults
  • The need for the contractor to inform long term programming that prioritises work within Council's limited budgets (so that we make best use of the funds available)
  • The need for Council's limited in-house resources to focus on long term direction as opposed to day-to-day work programming and problem response
  • The need to fulfill the required level of Health and Safety provision for staff and public
  • The need for locally based management of sub-contractors and work programmes
  • The opportunity for coordinated access to specialist activities aligned with State Highway activities for efficiency (such as road marking, reseals, roughness surveys)
  • The opportunity for efficient access to specialist support services (such as bridge inspection, geotechnical assessment, pavement design)
  • Access to a wider resource pool based locally
  • Effective collaboration and prioritisation of emergency response
  • Efficient procurement and management of Kaikōura District Council contracts

Next steps

The next stage of the process is to engage with NZTA and it's contractor to negotiate a variation to the current State Highway contract. This contract was competitively tendered and priced for Council. It is expected to be completed in time for the new contract commencement on 1 July 2018.

About Network Outcomes Contracts

This type of contract was developed to meet constrained maintenance budgets. This contracting model will ensure efficiency and effectiveness through strategic asset management and focused service delivery. NOC is a single contract model (inclusive of physical works and network management functions) and a combination of outcome and output performance based measures. 

Read more about NOC on the NZTA website here.

Background

In April 2016 Council staff had originally indicated to NZTA that Council wished to be part of the current State Highway contract competitively tendered later that year. Ultimately, Council was not included in tender documents due to the earthquake, but a schedule for the Council's network was included in the tender process and priced by all tenderers. 

This option was not taken up by Council and the current contract with HEB was extended by one year to 30 June 2018 as a stop gap measure to allow Council to progress earthquake recovery.

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 Last updated: 14 May 2018