Evolving from performance based to network outcome contracts

For more than a decade the New Zealand Transport Agency (NZTA) has employed a number of variations of procurement options to manage the national state highway network. Learnings from Performance Specified Maintenance Contracts (PSMC), Hybrid contracts and the traditional form of procuring network maintenance were taken on board to develop the new Network Outcome Contracts (NOC) currently being adopted across the country. These contracts include aspects of contracting known as quantities of major works, including resurfacing and rehabilitation, while routine maintenance is remunerated according to lump sum. The contractor also has to commit to a set of performance standard that have to be achieved over a contractual period of up to six years. The ultimate aim of setting up the NOC contracts was to improve road maintenance efficiencies through contractual arrangements that will ensure “doing only what is necessary” to the road network while keeping the performance at acceptable levels. This paper assesses this contractual model on the basis of long-term asset management and performance consequences to the road network. It also details the experiences through the tendering period and feedback on the practical implications of this new procurement model. Of particular interest is the flexibility of the contractual format to allow for “what is best for the network”, while ensuring an efficient investment across different road classes.

• Authors:
  • Henning, T F
  • Hart, G
• Conference:
  • Conference on Asphalt Pavements for Southern Africa (CAPSA15), 11th, 2015, Sun City, South Africa
• Publication Date: 2015-8

Language

• English

Media Info

• Pagination: 6p
• Monograph Title: 11th Conference on Asphalt Pavements for Southern Africa: CAPSA15, 16-19 August 2015, Sun City, South Africa

Subject/Index Terms

• TRT Terms: Contracts; Evaluation; Highway operations; Payment; Types of roads by network
• Uncontrolled Terms: Road design and asset management
• Geographic Terms: New Zealand
• ATRI Terms: Contract; Evaluation; Payment; Road management; Road network
• Subject Areas: Administration and Management; Finance; Highways;

Filing Info

• Accession Number: 01597136
• Record Type: Publication
• Source Agency: ARRB
• Files: ATRI
• Created Date: Apr 22 2016 11:16AM