Is cheap real value? - 2016 Hynds Best Paper (IPWEA NZ)
Tracks
4
| Wednesday, November 9, 2016 |
| 3:15 PM - 3:45 PM |
| Plaza P8 |
Details
2016 Hynds Best Paper Competition (IPWEA NZ)
Speaker
Carey Morris
Market Leader - Advisory
GHD Pty Ltd
Is cheap real value? - 2016 Hynds Best Paper (IPWEA NZ)
Abstract
After less than desirable contract delivery for many years and the premature end of the latest contract caused by unsustainable pricing on their network maintenance contract, Central Hawke’s Bay District Council (CHBDC) decided to take a fresh look at how they procured this major component of their business. The contract developed needed to be flexible enough to deal with changes that would likely come about with the One Network Road Classification coming into effect and the need to balance contractual requirements with shifting level of service delivery.GHD worked closely with CHBDC to develop the request for tender, a robust evaluation and negotiation process. The recommended and adopted procurement method was Quality Based with a pricing model that separated out profit and overhead payment. In a world where cheaper is often considered better it was a bold move to move to 100% quality on a $4m p.a. maintenance contract. This presentation will provide and insight into the reasons behind this change, the process of procurement and negotiation with the successful contractor and how in the quality based procurement process CHBDC are satisfied they received a competitive price that is reflecting a value for money outcome.
Biography
Carey has over 20 years engineering and asset management experience, which includes more than 10 years managing road networks and asset management activity in NZ and Australia. Previous roles have seen Carey lead teams of professionals in the delivery of civil engineering and infrastructure advisory projects. He has recently been appointed in the role of New Zealand market leader for the newly developed GHD Advisory business.
Based in GHD’s Wellington office he is involved a broad range of tasks for GHD and his clients ranging from project management, infrastructure investment business case development, procurement planning and a number of asset management activities across New Zealand and Australia. In 2013 Carey moved to Brisbane for 18 months to fill the Asset Manager role on one of the TMR Road Asset Management contracts. In 2015 he returned to NZ to manage GHD’s Wellington region transport business.
Carey also provides leadership across GHD in asset portfolio and operations management and is a regular visitor to many of GHDs Australian offices and Australian based clients.
This paper provides an overview of the development of the procurement and delivery model established by Carey and the GHD team for a term road maintenance contract, tailored to ensure true value for money outcomes were delivered for the Central Hawkes Bay District Council in New Zealand.
