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Coastal Otago Network Outcomes Contract awarded to Downer


The NZ Transport Agency has awarded Downer NZ Ltd a new seven-year Network Outcomes Contract (NOC) to manage the Coastal Otago State Highway network. Downer has held the preceding hybrid State Highway maintenance contracts for the last 15 years, together with their professional services supplier, MWH.

“The new $86 million contract starts this winter, from 1 July, and is part of a national Transport Agency initiative to improve the efficiency of roading maintenance through the engagement of a single supplier for each highway network on a performance-based contract,” said Ian Duncan, the Transport Agency’s Southern Business Unit Manager.

“Contract tenure will be based upon Downer achieving a number of monthly and annual performance measures which evaluate the efficiency, responsiveness and quality of their work.”

The contract covers routine maintenance and operation of the 773 kilometre state highway network, (see map) signage and markings, resurfacing, pavement rehabilitation, winter maintenance, and incident response.

The contract value is $86 million for the seven year term, or just over $12 million per year.

Downer’s Coastal Otago NOC team, led by Paul Jamison, comprises around 45 staff from Downer, MWH, SouthRoads, McDonough, and Buxton Consulting. They will be based from Downer’s regional office in Green Island, Dunedin, with a secondary office in Oamaru and depots and machinery/ storage yards in Balclutha, Tapanui, Lawrence, Milton, Middlemarch, Palmerston, Otematata, and Omarama.

“The Coastal Otago state highway network is one of the largest in the country, stretching from its northern extent at the Waitaki River to the Lindis Pass summit, inland to Raes Junction, and south to the boundary between Otago and Southland south of Waipahi,” said Ian Duncan.

He says that this new contract model has the potential to deliver better operational outcomes and more efficient roading maintenance.

“We are looking forward to building stronger relationships between the Transport Agency, our suppliers, and our customers through the collaborative nature of this Network Outcomes Contract,” said Mr Duncan. “That means better outcomes for our customers and stakeholders, and financial efficiencies.”

MapTransport Agency Maintenance Contract Manager Nicholas Rodger will be the main operational contact point for the new NOC team.