Assessment of road maintenance programmes

We recommend early engagement with Waka Kotahi investment advisors as they are available for support and guidance throughout the BCA process. See also the Waka Kotahi website for BCA guidance.

Early engagement and assessment will:

• enable all involved parties to negotiate the core programme
• allow Waka Kotahi to give a view on the merits of an enhanced programme before the approved organisation or Waka Kotahi (state highways) submits the initial draft request
• in the period between submission of the initial and the final programme proposals, enable the approved organisation and Waka Kotahi (state highways) to respond to the core and enhanced programme discussions and to provide more information, an amended programme or a combination of both.

Waka Kotahi:

• understands that the content and timing for the development of a maintenance programme submission under the relevant NLTP must take account of the other statutory obligations and business processes of approved organisations and Waka Kotahiy (state highways)  including the timing for renewing service delivery contracts
• expects every organisation to set out a clear plan (including timetable, programme scope and cost) for the implementation of the One Network Road Classification (ONRC) framework
• uses the assessment of an organisation’s activity management plan, organisational capability for activity management and procurement to also inform its decisions for the NLTP
• intends to provide feedback to each organisation before the organisation lodges its final programme request.

The Information approved organisations and Waka Kotahi (state highways) provide in Transport Investment Online(external link) (TIO) to support maintenance programmes should make reference to the relevant parts of long-term planning documents.

Approved organisations and Waka Kotahi (state highways) will develop forward work programmes and budgets for the road maintenance programme to support greater consistency in the delivery of customer levels of service as set out in the ONRC framework.

The road maintenance programme should demonstrate:

• how the proposed road operations, maintenance, and renewal activities fit within the maintenance programme
• where necessary the links to proposed improvement activities (under the improvements activity classes)
• how it optimises the life-cycle costs of the road networks in delivering the customer levels of service.

Maintenance programme submissions from approved organisations and Waka Kotahi (state highways) may be supported by and take account of a wider set of performance measures than those currently mandated in support of the ONRC. For example, an approved organisation may wish to support their submission with their long-term planning measures in addition to the ONRC measures.

For the allocation of maintenance programme funding in the 2018–21 NLTP, Waka Kotahi has focused primarily on the assessment of transport network performance as measured against ONRC requirements.

Waka Kotahi expects further development of the suite of performance measures will continue during the 2018–21 NLTP and lead to a broader set of specific performance targets for investment in the 2021–24 NLTP.

For the 2018–21 NLTP, Waka Kotahi has used the results alignment rating to assess the significance of a problem, issue or opportunity relative to the desired results set out in the Government Policy Statement (GPS).

For road maintenance the rating assessment will also assess the proposed customer levels of service against those set out in the ONRC framework.

What the ratings mean:

• A medium results alignment rating indicates network management largely meets appropriate customer levels of service. 
• A medium rather than a high results alignment rating should not be viewed as having ‘negative’ management connotations.
• A high results alignment means there is currently a significant gap in maintenance to meet customer levels of service for the road classification and an enhanced maintenance programme (in the short term) is required to get the programme on track.

The rating assessment is not an indication of how well an organisation is optimising and developing a programme; it is about how well the proposal is delivering the right outcomes.

A road maintenance programme will be given a low results alignment rating if the programme meets the following criteria:

A medium results alignment may be given if the activity addresses as many of the following criteria as possible:

A high results alignment may be given if the activity addresses as many of the following criteria as possible:

A very high results alignment must only be given if the activity addresses as many  of the following criteria as possible:

The main cost–benefit appraisal methodology for assessing road maintenance programmes is unit cost benchmarking. Additionally network performance comparisons against required levels of service and trend analysis (past and future costs and demands) play a part in the assessment.

Underlying the programme assessment is evidence of road controlling authorities applying sound activity management principles and processes to develop their road maintenance proposals. This includes the use of present value methodologies to identify the best value for money options and timing of interventions.

Programme ratings

Road maintenance programmes are given a rating using low, medium, or high based on their relative benchmarking comparisons.

• low – when cost effectiveness and benchmarking shows below-average band efficiency
• medium – when cost effectiveness and benchmarking shows average band efficiency
• high – when cost effectiveness shows above-average band efficiency.

The core programme represents Waka Kotahi’s assessment of eligible works within an approved organisation’s and Waka Kotahi’s (state highways) programme of maintenance work required to achieve or maintain a pre-determined level of service. This funding will probably achieve a medium results alignment.

An enhanced programme is where Waka Kotahi provides funding above the core amount. Any funding above the core programme will be fully contestable.

Enhanced funding may be considered for a programme that requires a significant change in investment, greater than that established in the core programme, to address the customer levels of service opportunities sought under IAF criteria for a high results alignment rating.

Waka Kotahi may agree to enhanced funding for a programme if:

• funding is available in the activity class for enhanced funding requests, and
• the enhanced funding component of the programme proposal and funding request is supported by a robust customer-focused business case that clearly demonstrates the value of investing in the level of service change (note: this justification may be in the AMP), and
• the investment partner is able to demonstrate they can deliver the service level change efficiently and achieve the associated benefits on a sustainable basis.