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 held the preceding hybrid State Highway maintenance contracts for 15 years, together with professional services supplier, MWH.
“The new $86 million contract starts July 1, and is part of a national initiative to improve roading maintenance through the engagement of a single supplier for each highway network on a performance-based contract,” says NZTA southern business unit manager Ian Duncan.
“Contract tenure will be based upon Downer achieving some monthly and annual performance measures which evaluate the efficiency, responsiveness, and quality of their work,” says Duncan.
The contract covers routine maintenance and operation of the 773-kilometre state highway network, 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 operate 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 to the Waitaki River to the Lindis Pass summit, inland to Raes Junction, and south to the boundary between Otago and Southland south of Waipahi,” says Duncan.
He says that this new contract model has the potential to deliver better operational outcomes and more efficient roading maintenance.
NZTA maintenance contract manager Nicholas Rodger will be the main operational contact point for the new NOC team.
