Thinking differently: Infrastructure - Driving performance & value

Rodney District is on the fringe of metropolitan Auckland, and has one of the highest growth rates in the country. The Infrastructure Directorate spends 72% of the Council’s operating budget and delivers a $100m capital works programme.

Rising rates, ballooning debt and poor operational performance created a demand for change. A new collaborative model was developed which involved:

• Bundling & tendering of professional services into six areas (asset management, water/wastewater/stormwater/Parks/Coast, transport, safety, structures & geotechnical);
• Re-tendering of physical works operations contracts – water, transport, parks and property.

Ten new contracts commenced in July 2009 with a value of about $45m p.a. The model is known as Infrastructure1 and the basis is ‘collaboration, cooperation and optimisation’. Collective success means that the council, consultants and contractors must work together as a team. Infrastructure1 demands a high level of trust between parties. It has made it easier to run the business and the results have created a culture of success.

It won’t be the right model for every territorial authority, but it may be an attractive option for some. For Rodney this model has achieved a 13% cost saving for the ratepayers.