Appendix: Main groups and relationships involved in Network Outcomes Contracts

New Zealand Transport Agency: Maintaining state highways through Network Outcomes Contracts.

As Figure 15 shows, the governance and management structure for the Network Outcomes Contracts includes:

  • two Agency-only groups; and
  • two formal contract groups with representatives from suppliers and the Agency.

Figure 15
Structure of contract participants

Figure 15 - Structure of contract participants.

Source: Office of the Auditor-General.

Main members of the Contract Management Teams

The Contract Management Team consists of representatives from the supplier and the Agency.

The Maintenance Contract Manager is responsible for administering the contract, ensuring that the outcomes of the contract are delivered, and representing and treating both parties in a fair and professional manner. They are the main link to promote and ensure healthy working relationships between both parties.

The Senior Network Manager/Network Manager is responsible for ensuring that state highways meet the levels of service defined by the One Network Road Classification. They are also responsible for planning and delivering improvements works and needs for the state highways. Their role includes forward works planning, the performance of assets, state highway operations, and resilience/risk management.

The Contract Manager is responsible for the overall management and delivery of the contract on behalf of the supplier. This includes ensuring that the contracts meet the requirements of the Agency, managing internal and external relationships, and supporting continuous improvement.

The formal contract groups

Each contract has a Contract Board made up of two to three representatives from the supplier and the same number from the Agency. Their roles include objective performance monitoring, resolving conflicts, compliance, and providing governance over risks and the health of the relationship between all participating parties.

The Contract Management Team is responsible for the day-to-day management and leadership of the contract team to ensure that the contract outcomes, including operational performance measures, key result areas, and key performance indicators, are considered, the relationships within the team (and externally) are effective, and contract risks are appropriately managed.

For all contracts

The Planning and Performance Team is responsible for developing and finalising results against the performance measures and indicators for the contracts, commissioning audits of the contracts, and for approving work programmes.

The Maintenance Contracts Governance Group consists of representatives from the Agency. Its role is to provide assurance that the Agency’s maintenance activities are achieving value for money and risks are well managed.