Restructuring A Renewals Programme To Deliver Long Term Value

With an aging pool of assets and the increasing density of development, replacement of wastewater network infrastructure is becoming steadily more expensive and less practical. A well timed and managed renewals programme can provide great value for money to Utility Operators. This paper examines the traditional model of a wastewater networks renewals programme and suggests an alternative structure to provide long term value to Utility Operators, contractors and consultants.

The current renewals process relies heavily on scoping of works provided by Utility Operator’s and their maintenance contractors. This then forms the basis for a request for design proposals and a tender for physical works under NZS 3910, or a design and construct tender under NZS 3916. The resulting works contract often fails to account for the specific capabilities and methodology of the contractor. Significant time can elapse between the initial investigation and the award of works and construction. As a result, the scope of the final solution can differ greatly from that first proposed. This has implications for consenting, costs and project timeframes.

Although the individual components of a wastewater renewals programme such as lining, trenched pipeline repairs and minor realignments are well understood, they often require the contractor to have access to an extremely broad pool of resources and capabilities. For example, many different lining technologies exist but not all will suit a particular section of pipeline. During the post tender period the contractor often has to mobilise significant resources in terms of project staff and equipment or hire multiple subcontractors to manage the works programme. This is often a significant cost component of the works. Organisational knowledge and resource is often lost at the completion of each tender cycle as incumbent contractors and consultants are replaced by a new team with the lowest conforming tender.

This paper will examine an alternative model that engages Utility Operators, contractors and consultants in a more collaborative process. It provides for accurate project scoping with early contractor and designer input into the process. A parallel consenting process reduces risk to programme. It seeks to provide more certainty around project cost, while not compromising on transparency and accountability for expenditure.

We will discuss a recent example of the implementation of the restructured delivery model in the upper north island of New Zealand, the lessons learned and project outcomes.