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Insights from the Auckland Motorway Alliance: Procurement Process and Price Tension

Explore insights from the Auckland Motorway Alliance on the procurement process, price tension, risk allocation, and long-term benefits, driven by technology, standards, and production rates. Learn about challenges, opportunities, and the importance of efficiency drivers in asset management.

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Insights from the Auckland Motorway Alliance: Procurement Process and Price Tension

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  1. INSIGHTS FROM THE AUCKLAND MOTORWAY ALLIANCE 12 July 2013 Richard Steel Project Director, Beca Ltd

  2. Procurement Process

  3. Providing for Change Applicability of delivery assumption Certainty of variations Degree of Certainty • Driven By: • Technology • Standards • Regulations • Levels of service • Asset changes • Driven By: • Production rate • Utilisation • Access times • Technology • Methodology 10 yrs

  4. Maintaining Price Tension 30 June 2018 1 Oct 2008 1 July 2015 1 April 2008 1 July 2012

  5. AMA Cost Performance Model

  6. Value for Money Tests

  7. Risk Allocation

  8. Observations • NZTA appointed Alliance Director has been a positive • Strong tactical asset management and efficiency drivers: • 3 year TOC periods • TOC and KRA/KPI and LoS resets • Challenges and Opportunities • Valuing initiatives with long term benefits (beyond TOC period) • Diminishing opportunity for efficiency gains • Maintaining a virtual business rather than developing a bureaucracy

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