Hamilton City Council is ushering in a new way of managing the city's immediate $67 million roading work after backing moves to establish a collaborative working agreement.
City transport network maintenance and renewal activities will be bundled into a single alliance-type contract, with Downer NZ as head contractor.
The initial period is for 3.75 years, starting from this week.
The total spend in that time is capped at $67m, which is within existing budgets.
The council will retain the flexibility to review the expenditure on an annual basis to suit circumstances.
Downer was selected after a tender process earlier this year and will engage with local contractors.
Sub-contracts will go to medium and small businesses throughout the Waikato, using local staff and materials.
Transportation unit manager Phil Consedine says the current contract arrangement, with its 13-plus separate contracts, is inflexible, doesn't always offer value for money or consistency around customer service responses.
"The city has a growing network of roads and pressure is on with reduced funding, growing customer expectations and increased compliance costs," he said.
"The Government has signalled its funding will be flat-lined in the years ahead.
"So this agreement between council and contractor is now necessary to achieve best value for money for ratepayers."
Advantages include:
Greater efficiencies across the transportation network
Value for money for ratepayers
Opportunities for local businesses
Shared goals and objectives between the council and its contractors
Cost transparency
Improved response flexibility
The agreement is headed by a principals group with two executives from Downer NZ and two senior council staff.