Does the main works contract for the RiverLink project in Lower Hutt contain any contractual requirements, key performance indicators, incentives or penalties relating to the engagement of local subcontractors or suppliers; if so, what are they, and if not, why not?

Answer

I am advised by NZTA that it does have a contractual Key Result Area (KRA) framework that includes Community at Heart and Enduring Partnership objectives relevant to local employment, local supply chains. Performance against the KRA framework is measured and reported as part of RiverLink Melling transport Improvements Alliance’s (the Alliance) contractual performance regime. This provides an incentive for the Alliance to deliver positive local and regional outcomes, although there is no separate penalty or incentive applying solely to the number or value of contracts awarded to local businesses. The Alliance supports these contractual outcomes through its procurement and supplier-development approach. Tender evaluations consider both price and non-price attributes, including a supplier’s local ownership, workforce, premises and operations, and whether it is based in the Hutt Valley or the wider Wellington region. Local presence is considered alongside capability, capacity, safety, value for money and delivery requirements. The Alliance also has a Broader Outcomes Plan with a focus on economic development through supplier participation and capability development. The Alliance operates a Supplier and Subcontractor Development Programme, which provides business mentoring, training and capability-building support intended to strengthen participating businesses and leave a lasting legacy beyond the life of the project. Accordingly, while the contract does not mandate that particular work be awarded locally, local participation and supplier development are supported through the contractual KRA framework, the Alliance’s weighted procurement process and its broader outcomes initiatives.