New contracts save $15m

Better value: New footpath and road contracts offer big savings.

From City Scene, published on 14 June, 2009.

Auckland City Council has saved over $15 million on road and footpath work thanks to the negotiation of new contracts for the next two years.

The 10 new contracts are due to start on 1 July and will cost as much as 30 per cent less for the same amount of work than the previous two years. The new contracts include maintenance and renewal work on citywide street lighting, as well as roads and footpaths in the Hauraki Gulf islands, and southern and eastern parts of Auckland City.

The savings gained on footpath contracts will be reinvested into the 2009-2011 work schedule, allowing the council to improve and maintain more footpaths for the same amount of money.

Contracts were awarded after a nationally accredited tender process assessed factors such as cost, customer service, management skills and work methodology.

Councillor Ken Baguley, chairperson of the council's Transport Committee said, "It is important in these tough times to always look for efficiencies. In this case that meant negotiating to receive the best-value for money on some of our biggest infrastructure maintenance and renewal programmes and projects.

"It's essential that quality is not compromised - this is important work to improve the safety and durability of our footpaths and roads. However, if you can receive the same or better service for lower cost, it's a win-win situation for Auckland's residents."