TRANSIT NEW ZEALAND

 

PERFORMANCE SPECIFIED MAINTENANCE

CONTRACT PSMC 001

 

TNZ CONTRACT NO. 2/98-025/601

 

Request for Tender

 

Note: The following document represents part of the tender document only. For further information, please contact Transit New Zealand directly.

 

 

PART 2: GENERAL DESCRIPTION OF CONTRACT

 

2.1              INTRODUCCION

 

The fundamental principle pertaining to this Contract, is the provision by the Contractor of all services and physical works for the maintenance of state highway Assets, for a period of 10 years, to prescribed Performance Measures for a lump sum price, with the Contractor carrying all risks except those specifically excluded. This clause presents a general overview of the philosophy of the Contract.

 

The Contractor will aim to maximise the reliability, safety and availability of the network to road users. The Contractor will also aim to operate the network to the satisfaction of road users, adjacent landowners and members of the public.

 

Assets:

 

The Assets to be maintained include everything within the state highway corridor.

 

Information pertaining to the Assets has been provided to all Invited Tenderers in good faith. Appendices L and M list all of the information provided. Invited Tenderers must verify for themselves the adequacy and accuracy of the information provided before lodging their Tender.

 

Performance Measures:

 

The Performance Measures and Method of Calculation are set out in Appendix G and represent the minimum acceptable levels the Contractor must achieve. The Contractor is required to implement a complete Quality System which includes monitoring of its own performance and the demonstration of compliance with the Performance Measures throughout, and at the end of, the contract period.

 

The Contract provides for formal annual audits of the Contractor's performance by an independent party. The Superintendent will also monitor the Contractor's performance at regular and random intervals, and assets the performance of the Contractor accordingly.

 

Lump Sum Price:

 

The tendered lump sum price will include all costs to bring the Assets up to the Base Condition Standard, together with the cost to provide all the required services to meet the Performance Measures. Innovation is strongly encourages under the PSMC. The Contractor is expected to develop innovative ways of providing the Services and achieving the specified Performance Measures. There will be no extra payments for innovation development costs and there will be no reduction in payment to the Contract, in the event that innovation reduces the Contractor's cost provide the contract conditions are met. Refer Clause 4.5.4.

 

The Contractor will be paid for the Services monthly throughout the Contract period, regardless of the quantum of the actual works and services provided.

 

Risks:

 

A risk is defined as an uncertain event which when it occurs, may have a material effect on the extent of the Services to be performed by the Contractor or the cost to the Contractor of performing the Services.

 

Except where explicitly stated to the contrary, the Contractor bears all risks in the lump sum tendered price. The explicitly stated risks accepted by the Principal are listed in Appendix H.

 

PSMC Trial:

 

This Contract is a trial of the Performance Specified Maintenance Contract (PSMC) form of the contracting out maintenance works and services. It is a new form of contract in New Zealand and has only been utilised to a limited extent overseas.

 

The PSMC form of contract seeks to maximise the skills, expertise, innovation and systems of the roading industry to provide better outcomes, and thus better value for money.

 

The Contract is non-prescriptive, and it allows the Contractor to elect how it meets the required outcomes.

 

The trial has the support of Transfund New Zealand, subject to the following conditions:

 

1.      The trial will proceed if it can be demonstrated that the cost to maintain the Assets to a like standard by the existing methods and contracts is greater than the cost of carrying out the maintenance under a PSMC.

 

The cost of maintenance utilising the existing methods and contracts is the Award Hurdle. All Invited Tenderers are required to demonstrate they can overcome the Award Hurdle before the Base Tender and any Alternatives Offers are considered.

 

2.      Tenders received be evaluated in accordance with an approved Competitive Pricing Procedure. Transfund New Zealand has given approval to the procedure set out in Appendix J.

 

Fundamental to the Contract is the need for a co-operative approach by the contracting parties, and a willingness of the Contractor to accept risk. The Contract does not provide for withholding payment as a penalty for a non-performance of the Contractor except as expressly provide in the general conditions. Instead it provides for termination of the Contract by the Principal in the event that the Contractor fails to meet its obligations under the Contract.

 

The proposed establishment of a Management Board together with the framework of this document, are considered by the Principal to promote the Contract objectives.

 

In awarding this Contract the Principal expects:

         To engage a contractor who embraces the philosophy stated above

 

         To engage a contractor that will take every step to make this trial a success; and

 

         All parties to be successful.

 

 

2.2              SERVICES TO BE PROVIDE

 

The Services under the Contract shall include:

 

         management of the Assets for a period of 10 years, to meet the Performance Measures

 

         routine, periodic maintenance and rehabilitation of the Assets, including pavements, surfaces, drainage, traffic safety signs and equipment, highway lighting currently the responsibility of the Principal, and railway level crossing, vegetation control, etc.

 

         collection and management of asset inventory data, including RAMM database data

 

         routine and periodic (non-structural) maintenance and rehabilitation of bridges and other structures within, over or under the networks

 

         call-out and attendance to emergencies

 

         response to public requests, complaints and feedback

 

         other services such as Land Entry, Access Control and Overweight Permit Supervision.

 

The services include receipt of the Assets and records from the existing service suppliers and, at the completion of the Contract, handover of the Assets and records to the incoming contractor/s.

 

The Contractor will be responsible for arranging all resources and skills necessary to undertake the Services including establishment of depots, and provision of labour, plant and materials.

 

The Services to be Provided shall not include:

 

         installation and maintenance of speed camera detectors, traffic counting station detectors and recorders, barrier arms and associated signals, variable message signs, emergency telephones and closed-circuit televisions

 

         structural repair and structural maintenance of bridges

 

         maintenance of projects, whilst they are in a defects liability period and the subject of other separate and discrete contracts.

 

The Services to be Provided are more fully described in Appendix F.

 

2.3              VARIATIONS TO SCOPE AND TIMING OF SERVICES

 

The Contractor is required to accept variations to the Services to be Provide throughout the term of the Contract, as advised by the Superintendent and in accordance with Clause 4.7. Variations may result from, but not limited to, the following:

 

         changes to the Contractor's maintenance programme suggested or required by the Principal

 

         variations to the Performance Measures which are defined in Appendix G

 

 

2.4              LIMIT OF WORKS

 

The lateral Limit of Works is the road reserve boundaries for the Assets except as noted bellow. Where an existing fence line lies within the road reserve boundary, the Limit of Works shall be defined by the fence line.

 

The legal road reserve boundaries are illustrated on "Terra View" 4.0 GIS Data View and Local Land Information. A copy of this information is available for viewing by all Invited Tenderers during the tender period.

 

The Contractor is required to have some means of establishing where the legal road reserve boundaries are, and land ownership, throughout the duration of the Contract.

 

In addition, there exists in specific areas, agreements of one sort or another with adjoining landowners relating to a variety of matters which are directly or indirectly relevant to the maintenance of the Assets. The Contractor is responsible for the Principal's obligation in respect of these agreements. The agreements are indexed in Appendix L.

 

In a number of locations, the state highway is known to be located only partly within the legal road reserve. Under such circumstances the Limit of Works is to be taken as the existing fence line, or the top of a cut batter, or toe of a fill batter, which ever is of greater offset from the road centreline but extending to the inlet and outlet structures of any culverts under the road.

 

In urban areas the Principal has a Memorandum of understanding with each territorial authority defining limits of responsibility. These are included in Appendix E.

 

The detailed definition of the Limit of Works, including the extent of the networks and relevant local agreements is included as Appendix E.

 

Ownership of the Assets within the Limit of Works remains with the Principal.

 

 

2.5              VARIATIONS TO LIMIT OF WORKS

 

The Contractor is required to accept variations to the Limit of Works throughout the term of the Contract, as advised by the Superintendent and in accordance with Clause 4.7. Variations may result from, but are not limited to, the following:

         Handover of additional section/s of highway or completed construction projects to the Contractor

 

         Handover of sections of the Assets to other authorities (e.g. Councils)

 

         Removal of a section of the Assets

 

         Temporary removal of a section of the Assets to facilitate capital and other works projects by another party.

 

 

2.11          MAINTENANCE RESPONSIBILITY

 

The Contractor will not be responsible for maintenance to any assets that lie within the limit of works of current contracts between the date of possession of site and the end of the maintenance period of those separate contracts. All maintenance and defects are the responsibility of other contractor/s until the end of a defects liability period at which time the assets will be handed over to the Contractor.

 

The Contractor will not be responsible for maintenance to any part of the network which has been upgraded as a capital work by another party, while the length of highway is the subject of a defects liability period.

 

The Contractor will not be responsible for the maintenance of that section of the highway included within the limits of a capital works contract being undertaken within the Limit of Works by another party for the duration of that other contract. The Contractor's responsibility under such circumstances ends on the date of handover of possession of site to the capital works contractor and begins again when the satisfactorily completed work is handed back to the Principal and the Contractor for ongoing maintenance.

 

A join inspection by all parties on completion of other contracts will identify any particular maintenance or omission responsibilities of the other contractor that may exist at the end of their contract maintenance period, and the Contractor will not resume responsibility for ongoing day to day and periodic maintenance of part of the Assets in question until the identified reasonable responsibilities of the other contractor are discharged, but only to the extend that such responsibilities have not been discharged.

 

 

2.12          QUALITY REQUIREMENTS

 

The Contractor will be required to develop and implement an auditable Quality System for all Services provided.

 

It will be the Contractor's responsibility to ensure all subcontractors and subconsultants comply will the requirements of the Quality System.

 

 

2.13          SAFETY REQUIREMENTS

 

The Contractor shall develop and implement an aggressive Safety Management and Intervention Plan. This Plan shall provide, at a minimum:

 

         Identification and prevention of safety problems

 

         Detailed procedures such as traffic management and emergency response

 

         Information management

 

         Safety monitoring

 

A more detailed description of the requirements is in Appendix F Clause F14.

 

 

2.14          ENVIRONMENTAL REQUIREMENTS

 

The Contractor shall act in an environmentally sensitive manner at all times.

 

The Contractor will comply with all requirements of all resource consents for the Services under the Contract, including any reporting requirements.

 

Documents relating to current and pending resource consents issued under the Resource Management Act 1991 have been provided to all Invited Tenderers. These documents are listed in Appendix L.

 

The Contractor will be responsible for the annual charges, and all other costs associated with those resource consents that are not related to capital works projects, together with responsibility for renewal of the resource consents, and procurement of any further resource consents, as may be necessary for continued execution of the Services under the Contract. The condition of any such resource consents must be met.

 

The Contractor's attention is drawn to:

 

         The existence of scenic and similar reserve land adjacent to the Limit of Works

 

         Geological and geomorphic features within and adjoining the Limits of Work of cultural, environmental or scenic significance.

 

         The existence and limitations of Regional Council general authorisations, and guidelines

 

The Contractor is required to identify all locations of environmental, cultural, and scenic value, and put in place procedures and practices that satisfy the conditions of all consents, compliance notices, and guidelines, including those related to emergencies.

 

 

4.5              CONTRACTOR'S OPERATIONAL OBLIGATIONS

 

4.5.1 Quality Plan

(a)   The Contractor must develop, maintain and follow a Quality System and Quality Plan.

 

(b)   The Quality System shall be effective upon Commencement of the Contract and shall be independently certified to ISO 9002 standard within a period specified by the Contractor. Refer to Clause 1.4.2.6.

 

4.5.4        Innovation Requirements

 

(a)    Throughout the term of the Contract, the Contractor must explore, develop and present to the Management Board potential Improvement Initiatives.

 

(b)    The Contractor must, in a similar manner, pursue potential Improvement Initiatives suggested to it by notice from the Principal or the Superintendent.

 

 

4.5.4.1 Relevant Initiatives

 

Examples of potential Improvement Initiatives are:

 

         Reduced maintenance cost and resulting payment (e.g. maintenance effort, longer life treatments);

 

         Reduced running costs;

 

         Improved levels of Service;

 

         Improved road safety performance;

 

         Added functionality (e.g. more features to meet road user needs);

 

         Reduced capital cost; and

 

         Increased service life of the Assets.

 

 

4.5.4.2 Approval of improvement Initiatives

 

(a)   The Contractor may carry out Improvement Initiatives as of right that do not require any additional payment or any reduction in the level of Service, Performance Measures or the Contractor's Obligations otherwise Improvement Initiatives will only be implemented if approved by the Management Board. The Contractor, in seeking approval to implement a new Initiative, must present to the Management Board for its consideration a brief report including:

 

         Description of the nature of the Initiative;

         Previous implementations;

         Risk involved and methods for mitigation;

         Time proposed to implement;

         Additional or reduced payment for the Initiative;

         Benefits quantified and qualified including any safety related benefits;

         Special conditions;

         Proposed sharing of benefits between Principal and Contractor; and

         Consistency with the TNZ national state highway management

 

(b)   The Management Board must assess the proposed Initiative and, if appropriate, make a recommendation to the Principal for its Approval, including in respect of any proposed alterations to payments under the Contract as provided for in Clause 4.6.12.

 

In making its recommendation in respect of alteration to payment the Management Board shall be guided by the principle that if any cost saving results from an Approved Improvement Initiative which does not relax any requirements of the Contract then there shall be no reduction in payments.

 

 

4.5.4.3  Implementation of initiatives

 

If implementation of an Approved Initiative results in an effect on payment, a variation will be issued for its adoption.

 

 

4.5.4.4  Consideration by Management Board

 

(a)     It is intended that the Management Board will reach a solution and make a recommendation to the Principal which will be beneficial and agreeable to both the Principal and the Contractor.

 

(b)     The actual process implemented will vary depending on a number of factors, including but not limited to the type of Initiative and its cost benefit, technical issues, funding levels and corporate and Government policies.

 

 

Some possible examples of outcomes of discussion within the Management Board are listed below.

 

         The Principal funds the Initiative to gain benefits from improved service levels with nil reduction in maintenance volume of work and associated payments.

 

         The Principal provides 100% of funding for the Initiative, the Contractor's volume of work varies and Contract payment to the Contractor is varied accordingly.

 

         The Principal and the Contractor jointly fund the Initiative and both parties share the benefits from implementing the Initiative. The benefits may be cost benefits, payment benefits or service benefits.

 

         The Contractor funds the Initiative with no change to the Lump Sum Payment as the Initiative reduces the overall costs of the project to the Contractor and does not require any lowering of the Performance Measures.

         The Contractor funds the Initiative and reduces its required maintenance costs and shares the benefit with the Principal by a reduction to payments from the Principal.

 

4.6.9        Adjustment for Rise and Fall in Costs

 

(a)   All prices, but not percentages, in the Price Schedules and the Lump Sum Payment are subject to adjustment for rise and fall in costs.

 

(b)   The Adjustment will be made once only in each calendar year.

 

(c)   The adjustment will be determined by the method described in Appendix D.

 

 

Calculation of Cost Fluctuation Adjustment

 

The amounts payable by the Principal to the Contractor, under the terms of the Contract shall be adjusted up or down by amounts calculated in accordance with the following formula:

 

C = VxF

Where:

 

F = [ ]

 

Where:

 

The value of F shall be rounded to four decimal places before final multiplication with valuation of work, V.

 

F= Cost Fluctuation adjustment factor

 

C= Cost fluctuation adjusted payment due to the Contractor for the month under consideration.

 

V= Payment due to the Contractor for the month under consideration based on the lump sum and any Additional Works, priced using the rates agreed as the basis of the Contract, and excluding the cost fluctuation adjustment.

 

W= Labour Cost Index - All Salary and Wage Rates; All Sections Combined, All Industries Combined, published by Statistics New Zealand for the quarter within which August falls for the year under consideration.

 

G= Producers Price Index Inputs- Industry Group 10 Non-Metallic Mineral Products, published by Statistics New Zealand for the quarter within which August falls for the year under consideration.

 

B= Producers Price Index Inputs- Industry Group 15 Construction, published by Statistics New Zealand for the quarter within which August falls for the year under consideration.

T= Producers Price Index Inputs- Industry Group 17 Part 1 Transport and Storage.

 

R= Producers Price Index Inputs- Industry Group 17 Part 2 Road Transport, published by Statistics New Zealand for the quarter within which August falls for the year under consideration.

 

P= Farm Expenses Price Index- All Farms - Fuel, published by Statistics New Zealand for the quarter within which August falls for the year under consideration.

 

W', G', B', T', R', P'= As defined for W, G, B, T, R and P respectively but applying for the quarter during which August 1998 fell.

 

For the period ending 30th June 1999, no cost fluctuation shall be paid. i.e. F=1 and C=V

 

For subsequent years the cost fluctuation factor, F, shall be calculated once only using the indices for the quarter containing the month of August. As an example, the value of F to apply for payments in the months of 1st July 1999 to 30 June 2000 shall be established using the indices for the quarter containing the month of August 1999.

 

For the purpose of calculating the cost fluctuation adjustment, any payment items which are based on actual cost or current prices and any advances shall be excluded from the calculation.

 

No other cost fluctuation adjustment will be made by reason of any inaccuracy in the proportion of inputs specified.

 

The indices to be used in the calculation of fluctuation shall be those first published by Statistics New Zealand for the first quarter.

 

If at any time any of the indices referred to are no longer published by Statistics New Zealand, or if the basis of any index is materially changed, the adjustment shall thereafter be calculated by using such other index or in such other manner, as will fairly reflect the changes as previously measured by that index.

 

 

Extent and Limit of Works

 

The Limit of Works is as follows:

 

State

Highway

 

Start RP

 

Finish RP

Approximate

Length (km)

 

Comments

 

3

 

RP 5/4.40

 

RP 218/9.55

 

215.0

 

From just north of Airport Road intersection (SH21) south of Hamilton City, to just west of Mahoetahi Rd near SH 3A intersection, New Plymouth

31

RP 0/0.00

RP 47/9.20

56.3

Otorohanga to Kawhia

37

RP 0/0.00

RP 0/7.43

7.3

Hangatiki to Waitomo Caves

4

RP 0/0.00

RP 61/8.80

69.7

Eight Mile Junction to Kururau Road, Taumarunui

30

RP0/0.00

RP 47/14.14

60.6

Te Kuiti to Taupo District Boundary

Total

 

 

408.9

 

 

 

For Contract administration and defining the scope and standard of service required, the Limit of Works consists of three networks. They are:

 

North Network - SH3 from RP 5/4.40 to RP 76/2.0 i.e. from the start through to just south of Te Kuiti Borough plus all of SH37.

 

South Network - SH3 from RP 76/2.0 to RP 218/9.55 plus SH4 from RP 0/0.00 to RP 61/8.80

 

East West Network- al of SH31 and SH30 between RP0/0.00 and RP 47/14.14

 

The map at the end of this Appendix relates.

 

Al state highways through urban areas are included in the network which passes through the area of urban development, and the state highways in such urban areas are to be maintained to the standards set down for the respective adjoining network.

 

Te Kuiti and Otorohanga Urban areas shall be part of the North Network.

 

The Principal has a memorandum of understanding with each of the territorial authorities prescribing limits of responsibility where the state highway passes through urban areas.

 

 

F 12 SERVICES SYSTEMS

 

The Contractor will take a systems approach to delivery of all services. This system will be sufficiently documented to allow the Principal to fulfil the audit role. Such a system will be partitioned into functional areas and will include all process and procedures to ensure compliance with the Contract requirements.

 

The following are examples of the services to be provided by the Contractor:

 

a)                  Annual Plan (Capital Works)

 

The Contractor will maintain a 10-year forward capital works programme developed using the Project Evaluations Manual and Programme and Funding Manual. Estimates will be prepared using the Principal's rules on contingencies.

 

Each year, the year 2 projects will form the basis of the Annual Plan deliverable in accordance with Section G4 of Appendix G.

 

b)                  Capital Works

 

The Contractor may be retained from time to time to carry out capital works projects. The Performance Measures relating to such works will be the subject of the project specific terms and conditions and not those of the Contract.

 

 

 

 

 

c)                  Environmental Compliance

 

In the performance of the Contract, the Principal aims to foster an environmentally responsible attitude on the part of the Contractor, its employees and subcontractors. Such compliance includes complying with existing resource consents investigating and obtaining all additional consents required under the Resource Management Act. Environmental compliance relates to all inputs or actions taking place within the Limit of Works.

 

The Principal engaged in a one off costs share agreement with Environment Waikato during July 1997 for the planting of trees to stabilise farmland below SH3, south of Mahoenui (from RP 103/14.6 to RP 103/14.7). The Principal has no further obligations regarding this planting.

 

d)                  Land Entry

 

All land entry consents required for maintenance activities shall be arranged by the Contractor.

 

e)                  Communication

 

         The Contractor shall prepare, for the approval of the Superintendent, then action appropriate media releases as and when necessary.

 

         The Contractor shall establish a communication system which includes logging complaints.

 

f)                    Health and Safety

 

In the performance of the Contract the Principal aims to foster a responsible attitude toward occupational health and safety on the part of the Contractor, its employees and subcontractors.

 

g)                  Emergency Procedures and Contingency Plans

 

The Contractor shall develop and maintain up to date specific procedures for emergency events, together with contingency plans associated with closure of the State Highway at any point.

 

The procedures shall include all necessary detour plans, signage and communication requirements.

 

h)                  General Management of Network Control

 

The Contractor is responsible for the day to day management of network control which includes, but is not limited to such issues as:

 

         obstructions and partial closures

         unauthorised works

         abandoned vehicles

         fences and encroachments

         damage repair cost recovery

         stock control

         purchase, control and disposal of the Principal's assets

         closure of State Highways

         roadside trading

         unauthorised signs

         illegal crossings and services

         actions potentially having significant adverse effects to the State Highway environment.

 

 

G1 INTRODUCTION

 

This Contract is based on the concept of passing total management and maintenance responsibility for the Assets, to the Contractor, for 10 years. To support the Contract, a Performance Measure framework has been developed. The objectives of the Performance Measures framework are to:

 

         Provide a Contracted Condition Standard at the Commencement of Services. This Contracted Conditions Standard will be compared to the condition of the Assets at the completion of the Contract.

 

         Provide a means to monitor and assess the Contractor's performance during the Contract.

 

         Provide security to the Principal that the condition of the Assets, and the Services to be Provided are being measured during the Contract.

 

 

G2 PERFORMANCE MEASURE FRAMEWORK

 

G2.1 Performance Measures

 

There are two categories of Performance Measures, Physical Works Performance Measures and Service Performance Measures.

 

G2.1.1 Physical Works Performance Measures

 

The Physical Works Performance Measures are divided into two sub-categories being Network Condition Measures and Asset Maintenance Standards as listed in Parts 1A and 1B respectively of Section G4 of this Appendix G.

 

G2.1.2 Service Performance Measures

 

The Service Performance Measures relate to professional and management services. Service Performance Measures relating to Reporting are listed in Part 2 of Section G4 of this Appendix G. Other Service Performance Measures are required to be identified and defined in Tenders in accordance with Clause 1.4.2.7.

 

G2.2 Conditions Standards

 

There are three condition standards, Base Condition Standard, Contracted Condition Standard and Final Condition Standard.

 

G2.2.1 Base Condition Standard

 

The Base Condition Standard is the condition to which the Assets must be maintained under the terms of the Base Tender. The Base Condition Standard forms the basis of tendering and may become part of the Contracted Condition Standard.

 

The Base Condition Standard for all Network Condition Measures except Residual Life shall be the actual condition of the Assets at Commencement of Services as measured and calculated by the Contractor in accordance with Clause G3.3.

 

The Base Condition Standard for Residual Life is that calculated by the Principal in accordance with Clause G3.1.

 

The Base Condition Standard for Asset Maintenance Standards is specified in Part 1B of Section G$ of this Appendix G.

 

The Base Condition Standard for Reporting under Service Performance Measures are those listed in Part 2 of Section G4 of this Appendix G.

 

G2.2.2 Contracted Condition Standard

 

The Contracted Condition Standard is the contracted condition to which the Assets are to be maintained, as agreed between the Principal and the Contractor. It consists of both the Physical Works Performance Measures and Service Performance Measures including all those nominated in the Preferred Tender and as negotiated between the Principal and the Contractor in accordance with Clause G3.3.

 

G2.2.3 Final Condition Standard

 

The Final Condition Standard is the condition of the Assets upon completion of the Contract as measured by the Principal.

 

G2.3 Inspections and Reviews

 

G2.3.1 Network Condition

 

Compliance with the Network Condition Measures will be monitored by High Speed Data Collection (HSDC), Falling Weight Deflectometer (FWD) and the related calculations.

 

The annual collection and the data recorded by High Speed Data Collection Vehicle (HSDV) analysis and SCRIM is the responsibility of the Contractor. Collection and validation of data is to be performed in accordance with the relevant specifications in this Appendix G.

 

The collection of data recorded by Falling Weight Deflectometer (FWD) is the responsibility of the Contractor. Collection of data is to be performed in years 3,6,8 and 10 of the Contract in accordance with Section G8 of this Appendix G.

 

Data collected by HSDC shall be maintained by the Contractor and results provided to the Principal.

 

G2.3.2 Asset Maintenance

 

Compliance with the Asset Maintenance Standards will be monitored by a combination of data collection and visual inspections. The Contractor will be responsible for collecting its own data for management of the Contract and for provision of data collection such as is required to demonstrate skid resistance and texture compliance. The Superintendent will generally only collect data in the event of a failure in the Contractor's non-compliance system being recorded in a random audit performed in accordance with Clause G2.3.3. or upon receiving complaints from the public.

 

G2.3.3 Random Audits

 

Compliance with the Asset Maintenance Standards and Services Performance Measures will be monitored by primarily by random audits of the Contractor's non-compliance system. The Superintendent will perform random audits as he deems necessary and may engage others to assist him in this task.

 

G2.3.4 Independent Reviews

 

The Principal will contract with an Independent Auditor to perform an annual review of the Contractor's performance, in terms of compliance with the Performance Measures.

 

The review will consist of a visual inspection, as described in Clause G2.3.2, and a random audit, as described in Clause G2.3.3.

 

The sample size for the visual inspection will be 100% in the first and final years and as determined by the Superintendent at the time of the review throughout the term of the Contract.

 

The draft Request for Tender document for selection of an Independent Auditor is included in Appendix I.

 

 

G3 PROCESS

 

G3.1 Historic Data

 

The Principal has undertaken High Speed Data Collection of State Highways for several years, measuring Roughness, Texture, Rutting and Skid Resistance. The results of these surveys, as they pertain to the Limit of Works, have been provided to Invited Tenderers, referenced in Appendix L as Item 5, Revisions 1, 2 and 3.

 

The Principal has recently undertaken a FWD survey of the Assets within the Limit of Works. The initial results of this survey were provided to Invited Tenderers, referenced in Appendix L as Item 55, Revision 1, Item 68, Revision 1 and Item 69, Revision 1 and later amended, referenced in Appendix L as Item 151, Revision 1.

 

The Principal has undertaken a 20% sample visual inspection of the Limit of Works to assist in setting the Base Condition Standard of Asset Maintenance Standards. The results of this survey have been provided to Invited Tenderers, referenced in Appendix L as Item 152 Revision 1.

 

With the exception of the results of the FWD survey, which has been used to calculate the Residual Life Performance Measure, the historic information on the condition of the Assets, as supplied by the Principal, does not form part of the Contract.

 

 

G3.2 Tender and Tender Evaluation

 

Invited Tenderers shall propose in their Tender Performance Measures for both Physical Works and Services in accordance with Clause 1.4.2.7.

 

The Performance Measures and their framework will be finalised as part of the negotiation between the Principal and the Preferred Tenderer in accordance with Clause 1.5.7.

 

G3.3 Finalisation of Contracted Condition Standard

 

Within 3 month of Commencement of Services, the Contractor shall perform a HSDC survey in accordance with Clause G2.3.1 and calculate the Base Condition Standard for all Network Condition Measures except Residual Life.

 

The Base Condition Standard for all Network Condition Measures except Residual Life, as measured and calculated by the Contractor will be considered by the Management Board.

 

The Management Board shall satisfy itself as to the accuracy and validity of the Contractors data and shall then set the Contracted Condition Standard for all Network Condition Measures listed in Part 1A of Section G4 of this Appendix G, except Residual Life, which shall be the Management Board's assessment of the actual condition of the Assets at handover to the Contractor.

 

The Performance Measures agreed as the basis of the Contract in accordance with Clause G3.2, as modified by the Management Boards determination of the Contracted Condition Standard of all Network Condition Measures, except Residual Life, will form the Contracted Condition Standard.

 

 

G.3.4 Compliance Assessment

Compliance with the Performance Measures will be monitored by the Contractor and the Superintendent throughout the term of the Contract in accordance with Clauses G2.3.1, G2.3.2 and G2.3.3.

 

Compliance with the Performance Measures will be reviewed by the Independent Auditor in accordance with Clause G2.3.4.

 

The first identification of a fault or defect will not be recorded as a non-compliance if it can be demonstrated by the Contractor's systems that the fault or defect is programmed for rectification within the response time specified for that type of fault or defect. Failure to rectify within the required response time and/or failure of the Contractor's systems to demonstrate compliance and/or subsequent identification of the same fault or defect will be assessed as described below.

 

Following the completion of any inspection or review performed in accordance with Clause G2.3, the Contractor's performance will be graded as: Satisfactory, Marginal, Unsatisfactory. The following criteria shall apply.

 

Unsatisfactory

-          any single instance of non-compliance with any Priority 1 Performance Measure

OR

-          non compliance with an unacceptable number of Priority 2 Performance Measures or an unacceptable number of instances of the same Priority 2 Performance Measure

OR

-          any single instance of non-compliance with a Priority 2 Performance Measures identified is a previous performance review and not rectified within the response time

OR

-          non-compliance with an unacceptable number of Priority 3 Performance Measures or an unacceptable number of instances of the same Priority 3 Performance Measure, identified in a previous performance review and not rectified within the response time

OR

-          non compliance with any single instance or a Priority 3 Performance Measure identified in previous performance reviews and not rectified within twice the response time.

 

Marginal

 

-          any single instance of non-compliance with any Priority 2 Performance Measures

OR

-          non-compliance with an unacceptable number or Priority 3 Performance Measures or an unacceptable number of instances of the same Priority 3 Performance Measure

OR

-          any single instance of non-compliance with a Priority 3 Performance Measure identified in a previous performance review and not rectified within the response time.

 

 

 

Satisfactory

 

-          full compliance

OR

-          non-compliance with an acceptable number of Priority 3 Performance Measures.

 

The person performing the inspection or review in accordance with Clause G2.3 is to form their own interpretation of what is 'unacceptable' in terms of the number of instances of non-compliance. This interpretation should take into account:

 

-          The extent and severity of the non-compliances

 

-          the number of non-compliances combined across all Priority levels e.g. if non-compliance are recorded at both Priority 2 and 3 levels, unacceptable' may be deemed to be a lower value than had only Priority 3 non-compliances been recorded.

 

-          the consequences of the reviewer's or inspector's interpretation and the relativity of these in terms of what was actually recorded during the review or inspection.

 

Disagreement as to what is unacceptable shall be resolved in accordance with Clause 4.15.

 

The results of all inspections or reviews performed in accordance with Clause G2.3 throughout the term of the Contract are to be included in assessing the required response, summarised as follows (i.e. any Marginal and Unsatisfactory results are cumulative throughout the term of the Contract):

 

 

Results of Inspections

(Clauses G2.3.1, G2.3.2 and G2.3.3)

Results of Reviews (Clause G2.3.4)

Satisfactory

One Marginal

 

Two or More

Marginal

One or More

Unsatisfactory

Satisfactory

N

C

M

M

One Marginal

C

M

T

M

Two Marginal

M

T

 

T

Three Marginal

T

 

 

 

One Unsatisfactory

M

M

T

T

Two Unsatisfactory

T

 

 

 

 

Table Key:

 

N= No action required

 

C= The Contractor is required to perform corrective action. A subsequent inspection or review will be performed six months after the inspection or review resulting in a less than Satisfactory grade.

 

M= The Contractor is required to perform corrective action accepted by the Management Board. A subsequent inspection or review will be performed three month after the inspection or review resulting in a less than Satisfactory grade.

 

T= The Principal may terminate the Contract.

 

Prior to the first inspection o review being performed in accordance with Clause G2.3 the Contractor's performance shall be assumed to be Satisfactory.

 

Inspections or reviews performed subsequent to the inspection or review resulting in a less than Satisfactory grade, will not necessarily be limited to the non-compliances identified in the inspection or review resulting in a less than Satisfactory grade.

 

Nothing in this clause shall effect the right of the Principal to terminate the Contract under Clause 4.14 nor shall this clause be considered to limit in any way the Contractor's responsibility to comply fully with the requirement of the Contract, nor shall it imply any constraints on the Superintendent to require a more timely remedy on any particular non compliance.

 

 

G3.5 Contract Completion

 

The Contractor shall fulfil its obligations in accordance with Clause 4.20.1.

 

The Independent Auditor will perform a review in the final year in accordance with Clause G2.3.4.

 

The Superintendent will consider this review in determining the Final Condition Standard and in the course of performing his duties in accordance with Clause 4.20.2.

 

G4 PERFORMANCE MEASURES

 

PART 1: PHYSICAL WORKS PERFORMANCE MEASURES

 

PART 1A: NETWORK CONDITION MEASURES

 

PART 1B: ASSET MAINTENANCE STANDARD

 

Feature

Desire Outcome

Category

Base Tender

Response time to correct deficiency

Recommended Boundary Criteria for Alternative Offer

Base Condition Standard

Handback Compliance

Compliance During PSMC Period

 

 

Bleeding

Binder no picked up on any time

All Roads

No free binder

100% at base condition

All bleeding surfaces treated

2 hours

No free binder which results in user complaints

 

 

 

 

 

 

 

No surprise for drivers. Safe

 

All required temporary warning signs erected before grit spread

100% at base condition

All temporary warning signs required by the Manual of Traffic Signs and Markings erected and maintained when grit spread

At all times

Base condition

 

 

 

Grit and signs removed within 24 hour of bleeding stopping

100% at base condition

Grit & temporary warning signs removed when no bitumen bleeding

At all times

Base condition

Snow

No surprise for drivers. Safe

All Roads

Road closure signs erected if road impassable. Emergency notification procedures and contingency plan enacted

100% at base condition

100% at base condition

1 hour

Base condition

 

Roads passable

North Network and all Urban

Traffic lanes sufficiently free of snow to be trafficable by light vehicles if safe and practical

100% at base condition

Continuous work to keep highway open and maintain open as long as worker safety is not compromised

2 hours

Base condition

 

 

South and East/West Networks

Traffic lanes sufficiently free of snow to be trafficable by light vehicles if safe and practical

100% at base condition

Continuous work in daylight hours to keep highway open & maintain open as long as worker safety is not compromised

2 hours

Road passable single lane during daylight hours only

Ice

No surprise for drivers. Safe

All Roads

All necessary permanent warning signs in place during periods when ice may be present

100% at base condition

All permanent warning signs required by the Manual of Traffic Signs and Markings erected at places where icing is frequently a problem

At all times in winter months

Base condition

 

 

 

All required temporary warning signs erected before grit spread

100% at base condition

All temporary warning signs required by the Manual of Traffic Signs and Markings erected and maintained when grit spread

At all times

Base condition

 

 

 

Remove signs within 2 days of ice and grit removal

100% at base condition

Grit & temporary warning signs removed when no ice present

At all times

Base condition

 

Adequate skid resistance

North Network and associated urban

Traffic lanes free of ice 6.00 am and 10,00 pm

100% at base condition

Traffic lanes free of ice

2 hours

Free of ice during normal working hours only

 

 

South and East/West Networks and associated urban

Traffic lanes free of ice 90% of day light hours each day

100% at base condition

Traffic lanes free of ice

2 hours

Free of ice during normal working hours only

Road Closures for Emergency Events

Motorist advised of road closure

All Roads

Appropriate temporary road closure signs & barriers erected at the point of closure

100% at base condition

All closures sign posted correctly within response times

2 hours 6.00am to 6.00pm

 

4 hours 6.00pm to 6.00am

 

 

Base condition

 

 

Permanent road condition signs changed before and after the closure

100% at base condition

All closures sign posted correctly within response times

30 minutes

Base condition

 

Service Agencies advised of road closure

 

AA, local police and TNZ notified of closure and regularly advised of developments

100% at base condition

All parties advised of closure and changes in conditions within response time

30 minutes for closure and reopening

Status reports at least 4 hourly 6am to 8pm

Base condition

 

Closure enforced

North Network

Road closure barricades staffed at all times

100% at base condition

Each closure manned at the barricades for at least 95% of time

1 hour

Road closure barricades staffed only during normal working hours

 

 

South and East/West Networks and Urban

Road closure barricades staffed in daylight hours

100% at base condition

Each closure manned at the barricades for at least 95% of time during daylight hour

1 hour

Road closure barricades not staffed

Planned Road Closures for Maintenance and Construction Works

Minimal disruption to normal highway activity

All Roads

Formal approval obtained and motorist and service agencies advised of closure

100% at base condition

100% compliance with State Highway Control Manual requirements

N/A

Base condition

 

Safety, smoothness, comfort

 

No unsealed surfaces

100% at base condition

Not greater than 1000m of traffic lane at any single project site unsealed for > 5 days without specific approval

2 days

Not greater than 1000m of traffic lane unsealed for 5 days on North Network, 7 days for South Network, and 10 days on East/West Network

 

Safety and capacity

 

No traffic delays

100% at base condition

3 minute maximum delay in urban areas,

5 minute maximum delay in rural areas

Must have a contingency plan

N/A

Doubling of compliance delays at

non-peak periods

Detritus and Litter

Safe, aesthetic functional, tidy and clean appearance

All Roads

No detritus and litter visible on carriageway and side slopes

 

100% at base condition

Not more than 10 items of litter in any one kilometre visible on carriageway and side slopes

1 month

No dangerous and offensive detritus and litter visible on carriageway and side slopes

PART 1B (II) ASSET GROUP: SEALED CARRIAGEWAY (including sealed shoulders)

 

Skid Resistance

Adequate Skid Resistance

 

Safety

All Roads, Site Cat.1

 

Intervention Level 0.45 SFC

No Cat 1 sites with 100% SFC < 0.50

100% at base condition

100% at base condition

2 years

Response time extended

1 month to 3 month

3 months to 6 months

1 year to 2 years

2 years to 3 years

 

 

 

No Cat 1 sites with average SFC < 0.45

100% at base condition

100% at base condition

1 year

 

 

 

 

No Cat 1 sites with average SFC < 0.40

100% at base condition

100% at base condition

3 months

 

 

 

 

No 5 consecutive 10 metre sections within a Cat 1 site with

SFC < 0.45

100% at base condition

100% at base condition

1 year

 

 

 

 

No 10 metre section within a Cat 1 site with

SFC < 0.35

100% at base condition

100% at base condition

1 month

 

 

 

All Roads, Site Cat.2

 

Intervention Level 0.40 SFC

No Cat 2 sites with 100%

SFC < 0.45

100% at base condition

100% at base condition

2 years

Response times extended 1 month to 3 months,

3 months to 6 months, 1 year to 2 years, 2 year to 3 years

Texture

Adequate Texture and Safety

All Asphaltic Paved Surfaces

Mean MPD

>70 mm* on all treatment lengths with asphaltic paved surfaces

100% at base condition

Not more than 2 asphaltic paved treatment lengths not complying

12 month

Base condition

 

 

 

Not more than 2m in any location and not more than 1% of any treatment length area with MPD >0.50mm*

100% at base condition

> 95% of any treatment length complying and not greater than 5m with mean texture depth < 0.5mm in any single location

2 months Sept-Apr

 

6 moths May-Aug

Base condition

 

 

All Chipseal Surfaces

Mean MPD > 0.90mm* on all treatment lengths with chip sealed surfaces

100% at base condition

Not more than 5 chip sealed treatment lengths not complying

12 month

Base condition

 

 

 

Not more than 2m in any location and not more than 1% of any treatment length area with MPD >0.50mm*

100% at base condition

>95% of any treatment length complying and not greater than 5m with mean texture depth < 0.5mm in any single location

2 months

May-Aug

 

6 Months

Sept-Apr

Base condition

Potholes

Safety, Smoothness, Comfort

North Network & associated urban

No Potholes

100% at base condition

< 10 potholes with a diameter >100mm on any continues 5 km of lane length

4 days

Up to 40 potholes in any 5km of lane length with no pothole >200mm diameter and/or response time up to 1 week

 

 

South & East/West Networks & associated urban

No Potholes

100% at base condition

< 15 potholes with a diameter >100mm on any continuous 5km of lane length

8 days

Up to 60 potholes in any 5km of lane length with no potholes >200mm diameter and/or response time up to 3 weeks

Depressions

Safety, Smoothness, Comfort

North Network and associated urban

No ponding of water >3mm above surfacing aggregate

100% at base condition

< 30m in any one km of wheel path with >3mm ponding

6 months

Base Condition

 

 

South and East/West Networks and urban

No ponding of water >3mm above surfacing aggregate

100% at base condition

Base condition 30m in any one km of wheel path with >3mm ponding

9 months

Base condition

Rutting

Safety, Smoothness, Comfort

All Roads

No ruts greater than 30 mm deep which concentrate runoff to a depth which induces aquaplaning or create safety problems

100% at base condition

Not more than 5m in any 100m length of wheel track in any lane with rutting exceeding 30mm depth

12 months

 

Base condition

Shove/Heave

Safety, Smoothness, Comfort

All Roads where the shove/heave impacts on safety

No shove/heave which impacts on road user safety

100% at base condition

No shove/heave which impacts on road user safety. All shoves and heaves in or adjacent to wheel paths <20mm above adjoing carriageway surface

2 weeks

Base condition

 

 

All Roads where the shove/heave impacts on safety

No shove/heave <50mm above adjoining nominal carriageway surface

100% at base condition

Less than 10m in any one km with shoves or heave >50mm above adjoining nominal carriageway surface

3 months

Up to 100m in any km with shoves/heave exceeding 50mm provided (i) traffic lanes have no heave >20mm, (ii) no heave exceeds 100mm, and (iii) no heave impacts on highway safety

Edge Break

Safety Structural soundness, no surprises

All Roads

<2 metres of edge break per km of adjoining lane where width of seal loss from nominal sealed shoulder edge exceeds 100 mm

100% < base condition

No greater than 5m of edge break per km of adjoining lane where width of seal loss from nominal sealed shoulder edge exceeds 100mm

1 month where sealed shoulder is <0.5m wide

 

3 months where sealed shoulder is >0.5m wide

Up to 50m of edge break per km of adjoining lane where the seal loss exceeds 10mm provided the sealed shoulder width is >0.5m and the maximum seal loss is >300mm

Service Covers

Waterproof, smooth riding

All Roads

Less than two on each network outside tolerance of + 10mm in any direction from adjoining surface

100% at base condition

No greater than 2 service covers in 1km in urban and nil in rural areas

2 months

Base condition

Cracked Surfaces

Structurally sound pavement, waterproof

All Roads

<10m of cracking evident in any km of road

100% at base condition

N/A

N/A

No cracking visible when inspected

 

PART 1B (vi) ASSET GROUP: DRAINAGE

Culverts

(<3-4 sqm waterway area)

Functional

All Roads

All culverts > 90% functional

100% at base condition

All culverts with al least 80% waterway area clear September to April inclusive

2 months

Each culvert > 80% functional at all times

 

 

 

 

 

All culverts at base condition May to August inclusive

1 month

 

 

Structurally sound

 

All culverts structurally sound

100% at base condition

All culverts monitored annually. All visual signs of structural distress reported

N/A

Base condition

Flumes

Functional

All Roads

All flumes greater than 95% functional

100% at base condition

All flumes with at least 80% waterway area clear September to April inclusive

2 months

Each flume > 80% functional at all times

 

 

 

 

 

All flumes at base condition May to August inclusive

1 month

 

 

Structurally sound

 

All flumes structurally sound

100% at base condition

All flumes monitored annually. All visual signs of structural distress reported

N/A

Base condition

Side Drains and Surface Water Channel

Functional

All Roads

All side drains and surface water channels with >90% design waterway capacity available

100% at base condition

All side drains and surface water channels with at least 80% waterway area clear Sep to April incl,

2 months

All side drains and surface water channels with al least 80% of the waterway area clear at all times

 

 

 

 

 

All side drains and surface water channels with at least 90% waterway area clear May to August incl,

1 month

 

Subsoil Drains

Functional

All Roads

All subsoil drains functional

100% at base condition

All subsoil drains functional Sept to April inclusive

3 months

Base condition

 

 

 

 

 

All subsoil drains functional May to August inclusive

1 month

Base condition

Sumps, Manholes, Droppers, Catchpits

Functional

All Roads

All assets >75% functional

100% at base condition

All assets >75% functional Sep-Apr

3 months

Base condition

 

 

 

 

 

All assets >75% functional May-Aug

1 month

Base condition

Kerbs & Channels

Functional, not damaged to the extent that the adjacent pavement is affected

All Roads

100% of K&C essential to the protection of the state highway asset functioning satisfactory

 

No damaged/

broken/

missing which has resulted in pavement deterioration

100% at base condition

Deficiencies in kerbs and channels which are resulting in deterioration of the adjacent pavement are addressed within response times

3 months

Base condition

Other Drainage Control Structures

Functional

All Roads

All other drainage structures are functioning satisfactory

100% at base condition

All drainage control and other structures functional at all times

2 months

Base condition

 

Structurally sound

All other drainage structures are sound and monitored annually

100% at base condition

All drainage control structures are monitored annually and any identified structural deficiency reported

N/A

Base condition

Preventive maintenance

Effects of erosion mitigated

All Roads

No identified potential erosion sites without preventive treatment or in place

100% at base condition

All potential erosion and scour site identified

N/A

Base condition

 

 

 

 

 

Normal maintenance-type solutions which may prevent or mitigate further erosion implemented

Appropriate to magnitude of problem and risk

Base condition

 

 

 

 

 

Major potential erosion problems reported

1 week

Base condition

 

PART 2: SERVICES PERFORMANCE MEASURES

 

Reporting

Work Category Report

All Roads

Breakdown of annual lump sum by the applicable work categories

100% compliance with base condition

100%

By 10 October each year

 

 

 

 

Confirmation of report dated 10 October of previous year

100% compliance with base condition

100%

By 31 March each year

 

 

Area Wide Treatment Achievement Report

All Roads

Achievement of output in kilometres

100% compliance with base condition

100%

By 31 January, 31 March and 31 July each year

 

 

Reseals Achievement Report

All Roads

Achievement of output in kilometres for asphaltic concrete and friction course

100% compliance with base condition

100%

By 31 January, 31 March and 31 July each year

 

 

Drainage Improvements Achievement Report

All Roads

Achievement of output in kilometres of major improvements

100% compliance with base condition

100%

By 31 January, 31 March and 31 July each year

 

 

Capital Works Report

All Roads

List of capital works project phases to be put forward to Transfund in coming financial year

100% compliance with base condition

100%

By 30 September each year

 

 

RAMM Report

All Roads

Inventory and maintenance updates

100% compliance with base condition

100%

By 21 July each year

 

 

Accident Reports

All Roads

Detailing nature, location, extent, weather conditions, condition of surfacing and traffic services and possible causes together with suggested remedial works

100% compliance with base condition

100%

Within 2 weeks of a fatal or serious accident

 

 

Highway Information and Route Data Sheets

All Roads

Update compliance with base condition

100%

100%

By 30 June each year

 

 

Resource Consent Reports

All Roads

Progress of applications

100% compliance with base condition

100%

Within 2 weeks of request by Super-Intendant

 

 

Local Authority Information Report

All Roads

Noting issues relevant to meeting with Local Authority

100% compliance with base condition

100%

1 week prior to meeting

 

 

Emergency Procedures Manual

All Roads

Updated in accordance with emergency system

100% compliance with base condition

100%

By 30 June each year

 

 

______________________________________________________________________________________________________________________________