IPWEA Conference – Auckland 22 – 25 June

REG had a major presence at the IPWEA conference with a trade stand and three papers presented. All were well received, and by the end of the conference REG was the most selected exhibitor and session.

Dawn Inglis, who led the development of the performance measures reporting tool, was on hand to guide attendees through it.

There were three presentations on the work of REG:

• Chris Olsen & Jamie McPherson  -  Selecting the best model for your road maintenance contract

• Mike Tapper (BECA) - Reporting ONRC measures:  some tips, tricks and guidance

• Julie Muir - Turning the supertanker: implementing a common level of service and performance framework for New Zealand roads

It was encouraging to see such a high level of engagement with our work.

HNO takes the business case approach

The Transport Agency must meet the same requirements for a business case approach to the NLTP as local authorities.  Highways and Network Operations (HNO) has been outlining its business case and working through some of the issues common to all RCAs.

“The greatest change we’re finding for HNO, in using the business case approach for maintenance, is the focus on defining problems carefully, rather than applying regular doses of the same solution. We all know how to make roads nicer, but the business case approach demands that we completely clarify what will meet the required level of service”, says Outcome Delivery Manager David Darwin.

“The ONRC performance measures value-for-money framework is helping us understand the level of risk we will tolerate for maintenance or renewal intervention. We’re spreading our money thinly on lower classification roads, so we can apply it to high classification roads where it will have most effect. Now we’re finding that the lower classification highways, in particular, appear to be in worse condition because there are more visible patches. But the primary Customer Levels of Service for safe access are being met.”

“By taking this approach, we are using risk as a testing tool to discover the optimal economic point of maintenance and renewal. We think the risk is worth it because historically our estimates of decay were conservative. However it requires much more careful monitoring of road condition – a human resourcing issue which all RCAs, including HNO, need to be aware of.”

HNO has almost halved the short term cost of resurfacing highways, while skid resistance has improved, simply by targeting the right treatment for each area.

HNO’s new approach to contracts

HNO’s new approach to risk requires not only new ways of planning services, but also new ways of buying them.

HNO has implemented network outcome contracts to deliver better value for money services to our state highway customers. One change has been for the agency to take more risk management away from contractors and manage it more in-house, because there has been little incentive for contractors to take risk by doing less work at lower cost.

However under the new arrangement, network operating contractors must apply an approved Maintenance Management Plan and Quality Management Plan. These require contractors to place greater emphasis on preventive maintenance techniques which potentially defer more costly treatments, and contractors must demonstrate the quality of the work they have completed.  HNO expects that work will be more durable and last longer.

The contract’s performance targets  don’t vary sufficiently from the ONRC performance measures to warrant renegotiation, so HNO will wait until the next cycle of contract negotiations to embed the ONRC level of service framework completely.

New case studies

REG regularly publishes case studies on our website which demonstrate best practice in implementing the ONRC and taking a collaborative approach.  Information sharing is one of the main ways we can develop a genuinely unified network, and tell our investment story.  This month’s new case studies are:

ONRC Gap Analysis Project Brief – Auckland Transport
This brief scopes the work needed to develop a maintenance and renewals programme that meets the ONRC Customer Levels of Service. It outlines a process to assess the gaps between current and ONRC levels of service; recommend a strategy and timeframes to close the gaps; create a strategy; and convert that to a 10-year draft budget.

Road Classification Framework – Auckland Transport
Most RCAs use several plans and classification systems for different requirements, which can sometimes lead to confusion. This framework summarises and compares the following three systems, to provide clarity over their purposes and parameters:

• Road use hierarchies developed by Councils for district and/or strategic plans

• Network operating plans/frameworks

• One Network Road Classification (ONRC)

Economic Road Network Planning (Southland District Council)
This case study describes the development of an economic network plan to identify the relative economic benefits of each portion of Southland District’s large roading network. The plan provides a robust basis for prioritising limited funds, and the approach has gained the support of the community.

ONRC visual guide

This guide is now available on the ONRC web page.

It provides assistance with five of the performance measures; four safety measures, and one amenity measure.

Each of these measures requires a sample of the network to be inspected and the level of compliance recorded. The guide provides visual comparisons - it is a living document that will be updated periodically.

Road Maintenance Procurement: delivery model guidelines

These guidelines will be posted on the REG website in the coming month. They offer RCAs a selection matrix of key client drivers to consider when choosing a delivery model for road maintenance activities. The matrix can be used to assess the four standard types of delivery models against the client drivers, to determine your preferred model. A process is suggested for reviewing and testing your preferred model and ensuring the decision is robust, transparent and defendable.

The guidelines were developed by looking at 11 New Zealand case studies and comparing the findings from these studies with a national and international literature search.

RCA business case and AMP milestones

Adherence to the timetable below should ensure that your RCA successfully integrates business case principles into your activity management plan, in time for the next NLTP (relevant workshops are identified in brackets and attendance is strongly encouraged). You can also use the REG resources outlined below:

Understand the context for your AMP

May-August 2016: Review current strategy and start developing your strategic case. Complete self-assessment. Early engagement with key stakeholders and begin Point-of-Entry discussions with NZ Transport Agency (Round 4,5&6 workshops). 

Resources: State Highway AMP, Auckland Transport 2015-18 AMP, Central Otago DC 2015/16-25/26 AMP Review, Auckland Transport ONRC gap analysis; REG online case studies.

Develop your AMP (timing variable between regions)

August-September 2016: Trial CLoS and performance measures and assess gaps in data. Identify network performance issues (Round 5&6 workshops).

Resources: REG online case study: Maintaining and renewing sealed pavements under the ONRC; ONRC Performance Measures – a general guide for using CLoS and performance measures.

October-November 2016: Develop a programme of activities to address network performance issues by assessing against defined strategic case problems (Round 7 workshops).

January-March 2017: Undertake gap analysis and identify benefits (Round 8 workshops).

Resources: REG online case study: Improved Option Selection - forward works programme optimisation.

May-August 2017: Identify programmes requiring investment or disinvestment.

Resources: REG online case study: NZTA programme review process.

July-October 2017: Finalise BCA AMP to enable engagement in LTP/RLTP process.

Resources: NZTA and regional councils available to advise.

Leadership Group vision

The REG leadership group has been looking ahead to the coming year, which is a crucial one for this project as RCAs develop and deliver their AMPs using the new business case approach.

Here is our vision of the path forward for REG’s work:

The REG leadership group will produce the tools and frameworks to enable all Road Controlling Authorities to improve asset management practices over the next 12 months.

We will successfully achieve our goals if:

• We deliver our agreed programme

• We inform our peers early on what is best practice

• We work collaboratively with the sector to facilitate change

• We take leadership in our community and actively engage in the vision of REG