The Integrated Delivery Model (IDM) will be the new delivery model for the majority of the state highway road maintenance requirements across Aotearoa New Zealand. NZ Transport Agency Waka Kotahi (NZTA) is developing this model following the NOC Review that took place during 2022, and the IDM will replace the NOC model from late 2025 onwards.
Our vision for the IDM is that those working in the road maintenance sector are empowered to bring their best selves to work every day, supported by an environment that links people together, inspires them, supports them and grows their skills to enable the delivery of great transport outcomes for Aotearoa.
The IDM will enable NZTA and the road maintenance sector to become more efficient and coordinated in the delivery of corridor-level improvements. At the heart of the new model is an aim to simplify commercial and delivery mechanisms to focus road maintenance requirements on outcomes that deliver value to New Zealanders.
We do however want to keep elements of the NOC model that have worked well. For example, our emergency response mechanism is considered world class, and we want to ensure that this is carried through into the IDM.
The IDM ensures NZTA gives effect to the State Highway Asset Management Plan (SHAMP), which shows how maintenance, operations, and improvements together provide services to customers. Maintaining and operating the existing state highway network ensures road users have safe and accessible roads to travel on.
The Government Policy Statement (GPS) for 2024–27 provides a significant increase in funding for road maintenance, along with increased scrutiny on performance and effectiveness.
Increased maintenance and resilience is one of four key strategic priorities within the GPS. Under the new Pothole Prevention Activity Class funding is ringfenced for road resealing, road rehabilitation and drainage maintenance, with the long-term aim being that we deliver 2% road rehab per year and 9% resealing per year across the state highway network - approximately 2700 lane kilometres per year.
However, before we reach that point, we need a significant uplift in capacity and capability across the sector. In the coming years we need to deliver more than 3000 lane kilometres per year to bring the network back to an efficiently maintainable standard. Throughout 2024 we are developing the new model and the contract form (the Integrated Delivery Contract) that will give life to our vision.
All existing NOCs will continue until procurement takes place, with contract extensions enabled in line with our procurement plan for the IDM. This will ensure we have consistency of delivery now while we develop the right model for the future.
The team delivering the IDM can be contacted via IDM@nzta.govt.nz
The recently confirmed GPS has outlined the investment the government is putting into road maintenance, particularly road renewals (over $2 billion for 2024–27), and clear expectations around delivery and value for money outcomes from NZTA.
Initially we anticipated rolling out the IDM at the start of the 2025/26 construction season (October 2026). Since then, we have considered this approach, and determined that a split approach will work best to ensure continuity of delivery during this transition.
All expiring NOCs will be procured through 2025. If the procurement process results in the existing network contract holder being selected as the supplier for the main IDC for the same network, we will transition them across by October 2025, as originally planned.
For networks where the procurement process results in a new supplier taking over the main contract the transition will take place by March 2026 - in other words, at the end of the 2025/26 renewal season.
Find below a link to an image outlining the timeframes for the Procurement workstreams from June 2024 until March 2026.
Intergrated procurement timeline [PDF, 64 KB]
In early September we released an Advanced Notice (Notice of Information) for the Integrated Delivery Contracts. You can find this on GETS via the link below.
Maintenance and Operations Integrated Delivery Contracts – Advance Notice(external link)
As part of the Advanced Notice interested suppliers are able to let us know the regions they are interested in, this is to give us insights ahead of the Registration of Interest being issued later this year. In October 2024 we will be initiating the two-staged procurement process; releasing the Registration of Interest followed by the Request for Tender in early 2025.
As part of the development of the IDM we are working with the Industry Liaison Meeting (ILM) group to engage with a group of industry representatives.
Meetings are being held regularly to provide updates on the development of the IDM, canvas feedback from representatives and discuss opportunities moving forwards.
Industry representatives are:
With the 2024–27 GPS now finalised, there is confirmation of a significant focus on state highway road renewals, via the State Highway Pothole Prevention fund.
Through this ring-fenced activity class, NZTA is looking to triple the volume of rehabilitation work undertaken for each of the next three summers, when compared to the 2023/24 figure of approximately 110 lane kilometres.
We acknowledge that we need to start delivering this now, and while we develop the IDM we are also looking to uplift delivery of road rehabilitation over the next two years.
This work is happening at pace, as we need to work quickly to line everything up and have suppliers ready to go by the time the construction season rolls around.
Targeting two key networks (Northland and Taranaki), we have been working with existing suppliers to understand their capacity, before sourcing any additional capacity from the wider market.
Additional capacity will be procured through a quick process, with three RFTs out currently. Additionally, an RFT process for two Bay of Plenty West asphalt packages (covering both structural and thin asphalt) are also currently in the market. The links for these are as follows:
Tenders close on Tuesday 10 September 2024, with contract award to take place in late September. More information on this will be provided in due course.
Throughout the development of the IDM we will keep external stakeholders and partners informed of our progress. Regular e-newsletters will be produced, and you can sign up to these directly via the subscribe link below.
