Auckland Council says its focus on delivering better value has progressed to further influence project management across the Council group.
Better Value Projects was introduced in March and, in just a few months, the programme is delivering new ways of working within the council and the council-controlled organisations (CCOs).
At this week’s Revenue, Expenditure and Value Committee, Deputy Mayor Desley Simpson (pictured) said the 10 principles are being applied to new, current and upcoming projects.
“In recent months, Better Value Projects has gained momentum and we’ve been able to deliver projects at better prices by using the 10 principles to deliver the same work, at lower cost,” says Cr Simpson.
“For example, we have halted several projects to reassess costs, which has seen several repriced considerably lower. This includes the Paremuka Dam culverts in Henderson, where the council retendering the project’s contract reduced the construction cost from $3.4 million to $1.9 million – saving $1.4 million from the focus on value for money.”
Council staff have also halted two projects, Milford Marina and Long Bay footbridges, to enable costs to be reassessed and delivered lower. Maximum cost targets for Te Ararata Creek and Harania Creek projects mean contractors have to focus on achieving better outcomes within a limited budget.
The Better Value Projects programme identifies short, medium and long-term initiatives. Short-term initiatives include identifying standard designs that can be adopted for other projects, targeted use of maximum prices, a strong problem definition focus and value assessments.
Practical tools across the council group are supporting staff to deliver cost-effective projects.
“We want all staff consistently applying the principles to their work, so we see every ratepayer dollar used to deliver greater value across our projects,” said project manager, Mark Townshend.
“Recent work included completing around 50 health checks that assess if Better Value Project principles have been considered and applied. We do 25 health checks in parks and community facilities each month alone.
“Supplier performance workshops are also underway, which enables us to partner with our suppliers to provide Better Value Projects for our communities.”
The Council says greater collaboration has also reduced dependency on consultants and greater use of internal expertise.
CCO’s Watercare and Auckland Transport have been introduced to Better Value Projects.
“Watercare confirms the Better Value Project principles align with its procurement practices and, similarly, Auckland Transport has taken action including speaking with a range of physical works panel suppliers, engineering and civil contractor forums.”
The 10 Better Value Project principles includes increased use of standard designs; setting maximum prices; added rigour to scoping and design work; additional problem definition and value assessments; and careful selection of providers, across location and performance measures.
Read more about Better Value Projects here.
