Infrastructure Alliance for Hamilton City Council – Downer NZ Limited
Two years ago the Hamilton City Council entered into an unincorporated joint venture with Downer to manage the Hamilton roading network. One of the first of its kind for a Local Authority it is set up as a standalone organisation with representation from both parties that manages and maintains Council assets within the Hamilton road corridor.
Employees of both Council and Downer are seconded to the venture and housed together as a working group. Both Downer and Council staff speak highly of the working environment and the collaboration that exists between them. Sub-contractors are also included as important members of the group.
They collectively work for the good of the asset and this aim is evident.
The arrangement guarantees that actual costs of work are reimbursable with profit as an agreed mark up. Works are delivered under a pre-estimated target cost and this can result in a gain pool which is shared between the parties.
Council is very pleased with the results so far. Delivery of work under target has resulted in a large amount of extra work being carried out in the first two years of operation. Better coordination of works across the City, liaison with other service providers and pooling of resources and knowledge has resulted in significant cost savings for the City.
The judges considered that this project was an excellent example of what can be achieved by the parties involved working together. Hamilton City and Downer have been a leaders in bringing this concept into the Local Authority arena and stand to reap the benefits in years to come.
Judges Paul Bishop Dave Macdonald