CAT
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MAINTENANCE & MANAGEMENT OF ASSETS
Better business and shared risks PROJECT: New Plymouth District Council Contract CONTRACTOR: Downer NZ CLIENT: New Plymouth District Council (NPDC) VALUE: $17.7m In 2019 Downer signed a 10-year contract with the NPDC. Signalling a new approach to collaborative contracting, the contract is evidence of the broader outcomes of government procurement driving better business practices. The contract is the only NEC4 Term Service Contract in New Zealand and embodies mature procurement within a significant shared risk model. Worth $155.6 million over 10 years, the contract covers urban and rural roads in the district and includes road maintenance and resealing, road line marking, road sweeping and street cleaning, CBD cleaning, bus shelter
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cleaning, emptying bins, as well as water and wastewater reticulation renewals and small to medium bridge maintenance. This contract sees the amalgamation of roughly 20 individual contracts into one, creating significant procurement and staffing cost savings. In the first year alone, Downer has helped the Council save approximately $700,000. NPDC is approaching old problems with a new way of thinking. Already there are social benefits, competencies being maximised, workforce development, community involvement, and social and environmental sustainability outcomes.
CCNZ / HIREPOOL CONSTRUCTION EXCELLENCE AWARDS 2021
