CCNZ update Contractor

2015 Hirepool Construction Excellence Awards: Category 5 & 6 Winners

Category 5: Excellence in the maintenance and management of assets

Winner: Infrastructure Alliance for Hamilton City Council – Downer NZ Limited

Two years ago Hamilton City Council entered into an unincorporated joint venture with Downer to manage the Hamilton roading network. One of the first of its kind for a Local Authority, it is set up as a standalone organisation with representation from both parties to manage and maintain council assets within the Hamilton road corridor.

Employees of both council and Downer are seconded to the venture and housed together as a working group. Both Downer and council staff speak highly of the working environment and the collaboration that exists between them. Subcontractors are also included as important members of the group.

They collectively work for the good of the asset and this aim is evident.

The arrangement guarantees that actual costs of work are reimbursable with profit as an agreed mark up. Works are delivered under a pre-estimated target cost and this can result in a gain pool which is shared between the parties.

Council is very pleased with the results so far. Delivery of work under target has resulted in a large amount of extra work being carried out in the first two years of operation. Better coordination of works across the city, liaison with other service providers and pooling of resources and knowledge has resulted in significant cost savings for the city.

The judges considered that this project was an excellent example of what can be achieved by the parties involved working together. Hamilton City and Downer have been leaders in bringing this concept into the Local Authority arena and stand to reap the benefits in years to come.

Judges: Paul Bishop and Dave Macdonald

Category 6: Excellence in routine maintenance

Winner: Nelson City Council Road Maintenance for Nelson City Council – Downer NZ Limited

The Nelson City Road Maintenance contract is an older (9 years) traditional contract which has evolved over time into an informal partnering relationship between the Nelson City Council and Downer.

While originally set up as a more traditional contract type the contract is now administered in a collaborative way involving Nelson City, Downer and significant subcontractors.

An atmosphere of confidence and trust exists between the parties and the council has enjoyed significant cost savings together with an enhanced profile within the community for the way in which works are delivered across the city.

Involving the contractor in reviewing works schedules and proposed methodologies has saved Nelson City significant monies and allowed for extra works needed to further improve the roading network.

This project shows what can be achieved when all parties work together in an open way to achieve the objective of the contract and the overall aims of Nelson City Council. Council is very happy with the results and has rewarded Downer by extending the contract for a further two years beyond its original expiry date.

Judges: Paul Bishop and Dave Macdonald

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