We outsource the majority of works and services for our asset improvement and asset management projects. Our approach to procurement uses a range of delivery models. These models have been developed based on international best practice and adapted to the New Zealand context. With this selection of models we are able to:
The policies and processes fundamental to procurement within the Transport Agency are detailed in the following documents:
View all upcoming, advertised and awarded contracts.
A project specific procurement strategy is normally prepared in advance of the commencement of procurement for projects over $50,000.
The criteria for selecting a delivery model is provided in NZ Transport Agency's State highway procurement strategy.
The Transport Agency’s capital project contract types are traditional, design and construct, alliance and early contractor involvement. The selected contract type is a function of the project’s delivery structure.
Project risk and the potential for innovation are the key criteria for selecting a projects delivery structure. While there is no definitive point for moving from one delivery method to the next, the trend is to move towards full delivery as the risk and potential for innovation increases. There is also room within each of the delivery models to develop alternative methods which best suit the complexity and risks associated with a particular project.
Delivery model selection diagram
This method depends on how well the scope of the works is defined. If the scope is:
For complex projects, it may be appropriate to break investigation phase into two parts:
While preferable to have lump sum contracts and include the phase(s) provisional activities it may be appropriate to complete the subsequent phases on a time writing basis if there is substantial uncertainty.
This method comprises a single contract for taking the project from the current phase to completion. As a full delivery model can be implemented at any time it may be appropriate to use the other delivery methods to complete the preceding phases such as using the traditional method to complete the project’s investigation phase.
Project alliancing is an approach aimed at creating mutually beneficial relationships between all parties to ensure best project outcomes. Unlike traditional forms of contract where risk is allocated to different parties, under a ‘pure’ project alliance, the alliance participants take collective ownership and equitable sharing of all risks associated with the delivery of the project.
The risk/reward arrangements are designed so that exceptional performance will deliver excellent outcomes for all parties while poor performance will result in poor outcomes for all parties. Alliance principles are founded on the following core principles:
Alliances are developed and implemented in two stages (note: no contract in place during the selection process).
The interim project alliance agreement (IPAA), akin to a simple form consultancy agreement, will provide the legal vehicle through which the non-owner participants will be reimbursed for their services during the interim alliance period.
Once the target cost, target programme and the remaining details of the pain-share/gain-share regime are agreed, and provided the NZ Transport Agency still wishes to proceed with the project under an alliance, then the participants will enter into a single project alliance agreement (PAA). The PAA sets out the participant’s collective and respective rights and obligations under the fully formed alliance.
The way to package a DC depends on where the project is at in its life cycle. To decide this, find out if:
If the answers to these questions:
The flexibility of the ECI method ensures that you are well-equipped to deal with change, as the scope will not be completely defined.
An ECI method should be considered if:
As this is a quality based procurement method to ensure value for money is achieved you will need to engage with an independent parallel estimate peer review and conduct a reconciliation process.
Additionally you may also need to engage with an external design peer reviewer to ensure the best value design is selected from an independent perspective.
The maintenance and operations space has moved from the existing traditional, hybrid and performance specified maintenance contracts to a primary supplier model. This model brings professional services and physical works components into one contract, called the network outcomes contract.
For further information contact SM030@nzta.govt.nz.