19 February 2025
Joseph Thompson
[FYI request #29824 email]
Tēnā koe Mr Thompson,
I write in response to your request dated 21 January 2025, for information under the Of icial
Information Act 1982 (the Act):
Please can you provide all email correspondence and subsequent email chains that were
sent between the Director - Infrastructure and Civil Construction and the General Manager -
Urban Development and Delivery.
This should cover the three months from the 1st May 2023 until the 1st August 2023, the
day the alliance agreement extension was signed.
Kāinga Ora wrote to you on 30 January 2025 seeking a refinement to your request, given the large
number of emails that were within scope. Kāinga Ora received no response from you. Kāinga Ora
then proceeded with a further search of emails using the keyword ‘alliance’ (the LEAD Al iance),
and the emails found within that search are attached. Content within the emails that do not relate to
the LEAD Al iance are marked as out of scope. Some information is withheld under section 9(2)(a)
of the Act to protect the privacy of natural persons.
As required under section 9(1) of the Act, I have considered the public interest in releasing the
information withheld. I do not consider the public interest considerations are sufficient to outweigh
the need to withhold it.
The Land Enablement and Delivery (LEAD) Al iance and Kāinga Ora have worked well together
over the past six years to deliver world-class infrastructure. However, as we continue to look for
cost ef iciencies across our programmes of work, we concluded that the alliance delivery model no
longer suits the requirements of our current and future work programme. For this reason, we
informed the LEAD Al iance late last year that we are ending our contractual agreement with them.
We are exploring alternative contracting options for the delivery of our infrastructure programmes
across our large-scale projects, and the current participants within the LEAD Al iance wil have the
opportunity to be part of the procurement process for this work.
You have the right to seek an investigation and review by the Ombudsman of this decision. There
is information about how to make a complaint at
https:/ www.ombudsman.parliament.nz or by
freephone
on 0800 802 602.
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Please note that Kāinga Ora proactively releases some responses to official information requests
where possible. Our response to your request may be published
at
https:/ kaingaora.govt.nz/publications/official-information-requests/, with your personal
information removed.
Nāku iti noa, nā
Mark Fraser
General Manager – Urban Development and Delivery
Out of Scope
-----Original Message-----
From: Mark Fraser [mail to:[email address]]
Sent: 8 June 2023 18:04
ACT 1982
To: Sarah Anderson [mail to:[email address]],Shanon Tapp [mail
to:[email address]],Nathan Palmer [mail to:[email address]]
CC: Angela Jones [mail to:[email address]],Jodi Polkinghorne [mail
to:[email address]],Tiana Miocevich [mail
to:[email address]],Donna Male [mail to:[email address]]
Subject: Re: Contract Extension Paper & Presentation
Excellent work Sarah. Very happy with the purpose you’ve used, good idea. I have nothing to add -
good job.
INFORMATION
Regards,
Mark.
_____________________________
Mark Fraser
General Manager, Urban Development and Delivery
Kainga Ora Homes and Communities
s 9(2)(a)
Out of Scope
RELEASED UNDER THE OFFICIAL
Out of Scope
ACT 1982
INFORMATION
From: Shanon Tapp
Sent: Thursday, 8 June 2023 9:28 AM
To: Mark Fraser ; Sarah Anderson ; Nathan Palmer
Cc: Angela Jones ; Jodi Polkinghorne ; Tiana Miocevich ; Donna Male
Subject: RE: Contract Extension Paper & Presentation
Similar to mark below:
In the background, maybe a couple of points :
-
As noted previously, Significant effort was already being made prior to the extension process by the
Alliance to re-set and align with Kāinga Ora’s expectations.
o Full re-measure of all Projects to provide accurate forecasting
o Pro-active engagement and investment of time and resource by Home Companies to improve
performance
Pg 8: It sounds like it was a “cost reduction” exercise. It was a foc
RELEASED UNDER THE OFFICIAL us on productivity (this is a buzz word
for the board and Andrew) efficiency and being a more deliberate and focused structure. Suggest wording:
-
Kāinga Ora expressed concern regarding the size of the management team, and its efficiency, and
therefore the cost of the Programme Target Outturn Cost (PTOC) relative to the Alliance Turnover.
-
Significant effort has been made to review the structure of the Alliance to ensure it is right sized and
efficient for the value that is expected.
-
A new structure has been put forward that still provides the service, value and outputs required,
however is significantly smaller and reduces the PTOC budget by approximately $4M from last year
2
- As part of Commercial Alignment a review was undertaken of the Cost and Risk Allocation to
ensure that all participants were aligned.
- It has been agreed that a Risk Allocation table will replace the Variation Benchmarking table within
the contract.
Other than that its good
From: Mark Fraser [email address]>
Sent: Thursday, 8 June 2023 8:47 AM
To: Sarah Anderson [email address]>; Shanon Tapp [email address]>;
Nathan Palmer [email address]>
Cc: Angela Jones [email address]>; Jodi Polkinghorne
[email address]>; Tiana Miocevich [email address]>; Donna
1982
Male [email address]>
Subject: Re: Contract Extension Paper & Presentation
ACT
Sarah,
The presentation is very good, nicely done. Some comments:
1. I have nothing for the cover paper other than a missing full stop :-)
2. The Presentation uses some acronyms that the readers won’t know. OIM and NOP. Could you comb
for use of terms and jargon we know but they don’t and make clear and easy for the reader.
3. I think it would be useful to have a new slide or two as introduction. We know the background many
of the IDC will not.
INFORMATION
4. Where you say there is $4m saving in PTOC perhaps expand total potential savings. I know it’s $4m
this TOC but the total over time is greater so say this.
5. I would have a slide that covers what was the performance issue that we were trying to solve. We
say there was one but not what it is. This is the obvious question for a reader so might as
well address.
6. I would conclude with why we are extending. e.g. With the programme nature and volume of work
OFFICIAL
the alliance model….
7. Something about changing the industry for civil design and construct to realise productivity
improvements in an industry that has hi
THE storically seen low productivity improvements. This is what
they are looking for.
8. I would then put in another slide that outlines the work done and to go. What is the scale. Cover in
the last 4 years has done ?ha, X TOCs in Y neighourhoods enabling Z homes and $600m of work.
9. It’s anticipated that in the next 5 years it will do….
UNDER
10. Consider tabling the projected $10m saving per neighbourhood, to be validated, but with the new
process and lessons learnt….
I’m available today to review or if you have any questions.
Regards,
RELEASED
Mark.
_____________________________
Mark Fraser
General Manager, Urban Development and Delivery
Kainga Ora Homes and Communities
s 9(2)(a)
3
Out of Scope
1982
ACT
INFORMATION
OFFICIAL
THE
UNDER
RELEASED
4
Out of Scope
-----Original Message-----
1982
From: Shanon Tapp [mail to:[email address]]
Sent: 8 June 2023 09:28
ACT
To: Mark Fraser [mail to:[email address]],Sarah Anderson [mail
to:[email address]],Nathan Palmer [mail to:[email address]]
CC: Angela Jones [mail to:[email address]],Jodi Polkinghorne [mail
to:[email address]],Tiana Miocevich [mail
to:[email address]],Donna Male [mail to:[email address]]
Subject: RE: Contract Extension Paper & Presentation
Similar to mark below:
In the background, maybe a couple of points :
INFORMATION
- As noted previously, Significant effort was already being made prior to the extension process by the
Alliance to re-set and align with Kāinga Ora’s expectations.
o Full re-measure of all Projects to provide accurate forecasting
o Pro-active engagement and investment of time and resource by Home Companies to improve
OFFICIAL
performance
THE
Pg 8: It sounds like it was a “cost reduction” exercise. It was a focus on productivity (this is a buzz word
for the board and Andrew) efficiency and being a more deliberate and focused structure. Suggest wording:
- Kāinga Ora expressed concern regarding the size of the management team, and its efficiency, and
therefore the cost of the Programme Target Outturn Cost (PTOC) relative to the Alliance Turnover.
UNDER
- Significant effort has been made to review the structure of the Alliance to ensure it is right sized and
efficient for the value that is expected.
- A new structure has been put forward that still provides the service, value and outputs required,
however is significantly smaller and reduces the PTOC budget by approximately $4M from last year
- As part of Commercial Alignment a review was undertaken of the Cost and Risk Allocation to
ensure that all participants were aligned.
- It has been agreed that a Risk Allocation table will replace the Variation Benchmarking table within
RELEASED
the contract.
Other than that its good
From: Mark Fraser
Sent: Thursday, 8 June 2023 8:47 AM
To: Sarah Anderson ; Shanon Tapp ; Nathan Palmer
1
Cc: Angela Jones ; Jodi Polkinghorne ; Tiana Miocevich ; Donna Male
Subject: Re: Contract Extension Paper & Presentation
Sarah,
The presentation is very good, nicely done. Some comments:
1. I have nothing for the cover paper other than a missing full stop :-)
2. The Presentation uses some acronyms that the readers won’t know. OIM and NOP. Could you comb
for use of terms and jargon we know but they don’t and make clear and easy for the reader.
3. I think it would be useful to have a new slide or two as introduction. We know the background many
of the IDC will not.
1982
4. Where you say there is $4m saving in PTOC perhaps expand total potential savings. I know it’s $4m
this TOC but the total over time is greater so say this.
5. I would have a slide that covers what was the performance issue that we were trying to solve. We
ACT
say there was one but not what it is. This is the obvious question for a reader so might as
well address.
6. I would conclude with why we are extending. e.g. With the programme nature and volume of work
the alliance model….
7. Something about changing the industry for civil design and construct to realise productivity
improvements in an industry that has historically seen low productivity improvements. This is what
they are looking for.
8. I would then put in another slide that outlines the work done and to go. What is the scale. Cover in
the last 4 years has done ?ha, X TOCs in Y neighourhoods enabling Z homes and $600m of work.
INFORMATION
9. It’s anticipated that in the next 5 years it will do….
10. Consider tabling the projected $10m saving per neighbourhood, to be validated, but with the new
process and lessons learnt….
I’m available today to review or if you have any questions.
OFFICIAL
Regards,
THE
Mark.
_____________________________
Mark Fraser
General Manager, Urban Development
UNDER and Delivery
Kainga Ora Homes and Communities
s 9(2)(a)
Out of Scope
RELEASED
Out of Scope
1982
ACT
INFORMATION
OFFICIAL
THE
UNDER
RELEASED
3
1982
ACT
STAGE 1 & 2
CONTRACT
INFORMATION
EXTENSION OFFICIAL
UPDATE THE
UNDER
15 May 2023
RELEASED
1982
FEBRUARY 2023 - STAGE 1
ACT
SUBMISSION CONTENT &
PRESENTATION TO
KĀINGA ORA
INFORMATION
Right leadership + right-sized team +
OFFICIAL
right culture + focus & direction =
right outcomes
THE
UNDER
RELEASED
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1982
Our Journey to Date
ACT
INFORMATION
OFFICIAL
THE
UNDER
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1982
HEALTH SAFETY AND WELLBEING – KPIs and INITIATIVES
ACT
TARGETS (KPIs)
VISIBLE LEADERSHIP
AND SAFETY SYSTEMS
• >20% reduction in LTI’s,
MTI’s and RWI’s
• Al iance leadership driving
• Leadership driving safety
safety culture
culture – 40 specific
• Clear expectations linked
INFORMATION
safety improvements
to KPI’s
• Critical risk reduction
Everyone
• Simplified H&S systems
audit > 90%
Goes Home
SAFELY
OFFICIAL
REDUCING EXPOSURE
WAYS OF WORKING
THE
TO CRITICAL RISKS
“Better Planning
”
• Strive to eliminate critical
• AMT led pre-construction focus.
risks
• NO physical work until EPAs received
UNDER
• Verifying risks and controls
• No build partners
• Stop / reassess as works
• HSbD
change
RELEASED
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1982
COST AND PROGRAMME MANAGEMENT ACT
KPIs
CULTURE CHANGE
INFORMATION
• Current TOCs holding EFC
CERTAINTY
• Business Owner Mindset
• Future TOCs neutral pain/gain
AND
• Training and Accountability
• 95% of TOCs delivered on time
• AMT Driving Cost and
• Kāinga Ora satisfaction result
TRANSPARENCY
OFFICIAL
Programme
THE
UNDER
RELEASED
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1982
COST AND PROGRAMME MANAGEMENT ACT
COST
PROGRAMME
• Consistent Format
CERTAINTY
• Des
INFORMATION ign & Construction
AND
Integrated Programme
TRANSPARENCY
OFFICIAL
THE
• Accountability
•
UNDER Change Control Process
• Combined Project Report
• Monthly Reviews
RELEASED
1982
Our Commitment to High Performance by Feb 2024 ACT
Commercial
Cost and
Health Safety
Alignment
programme
Lean
& Wellbeing
Key
Organisation
Cultural Shift
Alignment on
Personnel
Owner Mindset
change
Back to
20% Reduction
Right Team
INFORMATION
Fundamentals
in Harm
Reduced Cost
Variance
Concerns
addressed &
High
Improved
closed
Performance
Decentralised
Health & Safety
Programme
Culture
Structure
by Design
Accuracy
Changes to
OFFICIAL
Collaboration &
TOC on time
ACAP
Trust
Reducing PTOC
Lower Exposure
95% of time
overheadsTHE
to Critical Risks
Balanced DNOP
Accountability
Significant
& limb payments
Clarity
Annual Savings
High Performance Alliance Delivering SCALE AND VALUE to Kāinga Ora
UNDER
Right leadership, right mindset & focus, right direction,
right outcomes
RELEASED
1982
MARCH 2023 - STAGE 2
ACT
SUBMISSION CONTENT &
PRESENTATION TO
KĀINGA ORA
INFORMATION
Benefits + Commitments =
Impro
OFFICIAL
ved Performance
THE
UNDER
RELEASED
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1982
ACT
INFORMATION
OFFICIAL
THE
Pricing Pack
UNDER
RELEASED
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1982
Value for Money - Neighbourhood Planning
ACT
INITIATIVE: DEVELOP A FIT FOR PURPOSE NEIGHBOURHOOD PLANNING PROCESS
ORDERED
DECISION &
APPROACH
APPRO
INFORMATION
VAL GATES
BETTER
PLANNING
OFFICIAL
STAGING STRATEGY &
THE
VALUE ENGINEERING
PRICING PACK
THE MASTERPLAN
UNDER
RELEASED
1982
ACT
Neighbourhood Planning
NP-1
Confirm
INFORMATION
Preliminary
Scope &
Identify Issues
NP-2
NP-3
Neighbourhood
Confirm
Decision
& Develop
Neighbourhood
NBC
Pricing Pack
Assessment
preferred
to
Options
Staging Plan
Options
Approval
Progress
or hold
OFFICIAL
THE
UNDER
RELEASED
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1982
TOC DEVELOPMENT
ACT
Initiatives:
KEY BENEFITS
1. TOC PRICING PACK
Significant reduction in TOC
INFORMATION
2. STREAMLINED TOC
Development Phase Timeframe
STREAMLINED
PROCESS
& IMPROVED
Policy Decisions
3. INCREASED ACCURACY
ACCURACY
OFFICIAL
Simplification & Education
OF TOC ESTIMATE
THE
Feedback loop on
constraints experienced
UNDER
KPI: AVERAGE TOC DEV PHASE 12 / 16 WEEKS
RELEASED
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1982
Value for Money - Detailed Design
ACT
INITIATIVE: ENSURE OUR DESIGNS ARE AT THE MINIMUM STANDARD AND FIT FOR PURPOSE
VALUE ENGINEERING,
DESIGN GATE REVIEWS
CONSTRUCTABILITY &
INFORMATION
& QUALITY
CHANGE MANAGEMENT
MINIMUM
STANDARD
DESIGN
OFFICIAL
THE
WORKING WITH
STANDARD AND
COUNCIL ORGANISATIONS
CONSISTENT DESIGN
UNDER
RELEASED
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1982
Value for Money - Construction
ACT
INITIATIVE: BETTER PLANNED AND CONTROLLED ENVIRONMENT
Getting Control =
HARD GATES
Managing Interface
INFORMATION
-
IFC prior to starting on
CONTROLLED
Reduce Time Related Cost
site
ENVIRONMENT
-
Build Partners after PC
Self Improvements
OFFICIAL
-
Full Superlot works
THE
BENEFITS
UNDER
-
5% increase in productivity
-
Less overall time on site
RELEASED
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1982
Collaboration
ACT
INITIATIVE:
PIRITAHI ALLIANCE HIGH PERFORMANCE PLAN
Kāinga Ora Collaboration
• AMT Leadership Capability
INFORMATION
• Early involvement in
• Open and Transparent
neighbourhood planning
communication
ONE TEAM
OFFICIAL
• Understand al iance
• Constructive Collaborative
principles
Culture
THE
• Build partners
• Stage 1 & 2 Accountability
UNDER
RELEASED
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1982
ACT
Constructive and Collaborative Culture
s 9(2)(a)
INFORMATION
OFFICIAL
THE
UNDER
RELEASED
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1982
Recap Stage 1 and 2
ACT
Stage 1:
Key Personnel
Cost and Programme
Health and Safety
INFORMATION
Commercial Alignment
Stage 2:
OFFICIAL
Design and Construction Productivity
TOC Development
THE
Collaboration
UNDER
RELEASED
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1982
STAGE 3 – MANAGEMENT PLANS
ACT
INFORMATION
OFFICIAL
THE
UNDER
RELEASED
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1982
ACT
INFORMATION
OFFICIAL
THE
Pricing Pack
UNDER
RELEASED
s 9(2)(a)
-----Original Message-----
1982
From: Mark Fraser [mail to:[email address]]
Sent: 8 June 2023 08:46
ACT
To: Sarah Anderson [mail to:[email address]],Shanon Tapp [mail
to:[email address]],Nathan Palmer [mail to:[email address]]
CC: Angela Jones [mail to:[email address]],Jodi Polkinghorne [mail
to:[email address]],Tiana Miocevich [mail
to:[email address]],Donna Male [mail to:[email address]]
Subject: Re: Contract Extension Paper & Presentation
Sarah,
INFORMATION
The presentation is very good, nicely done. Some comments:
1. I have nothing for the cover paper other than a missing full stop :-)
2. The Presentation uses some acronyms that the readers won’t know. OIM and NOP. Could you
OFFICIAL
comb for use of terms and jargon we know but they don’t and make clear and easy for the
reader.
3. I think it would be useful to have a new slide or two as introduction. We know the background
THE
many of the IDC will not.
4. Where you say there is $4m saving in PTOC perhaps expand total potential savings. I know it’s
$4m this TOC but the total over time is greater so say this.
5. I would have a slide that covers what was the performance issue that we were trying to solve.
UNDER
We say there was one but not what it is. This is the obvious question for a reader so might as
well address.
6. I would conclude with why we are extending. e.g. With the programme nature and volume of
work the alliance model….
7. Something about changing the industry for civil design and construct to realise productivity
improvements in an industry that has historically seen low productivity improvements. This is
what they are looking for.
RELEASED
8. I would then put in another slide that outlines the work done and to go. What is the scale.
Cover in the last 4 years has done ?ha, X TOCs in Y neighourhoods enabling Z homes and
$600m of work.
9. It’s anticipated that in the next 5 years it will do….
10. Consider tabling the projected $10m saving per neighbourhood, to be validated, but with the
new process and lessons learnt….
1
I’m available today to review or if you have any questions.
Regards,
Mark.
_____________________________
Mark Fraser
General Manager, Urban Development and Delivery
Kainga Ora Homes and Communities
s 9(2)(a)
1982
Out of Scope
ACT
INFORMATION
OFFICIAL
THE
UNDER
RELEASED
2
Out of Scope
-----Original Message-----
1982
From: Mark Fraser [mail to:[email address]]
Sent: 16 June 2023 08:34
ACT
To: Shanon Tapp [mail to:[email address]],Nathan Palmer [mail
to:[email address]],Sarah Anderson [mail
to:[email address]],Neil Mayo [mail to:[email address]]
Subject: In Confidence- Piritahi Extraordinary Escalation - draft
Team, see my thoughts below. This is a brain dump getting it off my chest. Nathan, I know that you are
going to put some numbers together, maybe that helps.
If we are going to say no we will have to say why, this is what I’m doing below. I’m not
INFORMATION saying this
should be used/sent but I’m putting the idea out there as a conversation starter.
s 9(2)(a)
OFFICIAL
The Piritahi PAB paper titled [CHECK] and the discussion of Thursday 15 June, was seeking PAB
approval of a variation for consequential costs post Covid and mitigation for the the extraordinary
escalation that has occurred in the economy the last couple of years, including the construction
THE
sector, over and above those costs already paid by Kainga Ora.
The PAB did not reach agreement as there is a split between the NOPs (in support) and the owner
participant (against). UNDER
During and since covid the commercail position of the alliance is worse than it would have been had
the pandemic and particularly had the high inflation of recent years not occurred. This is not in
dispute. It is also clear that the causes were beyond the control of the alliance. However, once known
there was opportunity for the alliance to manage them and with hindsight it did not manage as
aggressively as it perhaps should have.
RELEASED
The paper presented to the PAB goes to some effort to explain the quantum of the commercail
impacts, although I note that it does not provide a worked example from a TOC from the period in
question, despite repeated requests by Kainga Ora for such an approach. We can only presume
because it is not possible or it does not support the argument.
As I point out above, that there has been a negative commercail impact on the alliance of events of
the last few years is not in dispute. The question that needs to be answered and is not, is why is the
impact a client risk and not an alliance risk? A core principle of alliancing is risks are placed were they
1
can be best managed and then having done so they are then shared. While events in question are
unprecedented, they were in the right place for their managment and there were shared. Kainga Ora
has already paid direct cost arising from the pandemic that could not have been foreseen.
This discussion on extra ordinary escalation being a variation has been running for well over a year
and despite the effort applied to it, the case remains weak. For that reason Kainga Ora does not
accept the proposal for a variation and the removal of the historical risk from the alliance.
We acknowledge that as profit making businesses it is commercially rational for the NOPs to seek
betterment on a negative commercail position. Perhaps even more so given the negative overall pain
position the alliance is currently in. However, as we all know the performance of the allince to date
has been well below acceptable and we’ve all had a part to play in this. We have worked hard and
constructively to turn it around and set a path for future success. In doing this and resolving some
1982
historical issues, including many commercail ones, Kainga Ora have been fair and at time perhaps
even generous, reducing some of the negative commercail impacts on NOPs of poor to date
ACT
performance.
Next week we sign a contract extension of five years for Piritahi, where despite the performance
issues to date, Kainga Ora in backing it’s future and is confident that it will be successful. The work
done by the NOPs and the alliance has provided this confidence. The work ahead within that
extension is in the order of $1 billion of design and civil construction activity and Piritahi will be be
asked to deliver the vast majority of it. We consider the protracted and poorly articulated request for
commercail betterment that is the focus of this variation, and its timing relative to our reconfirmed
future, poor judgement by the NOPs and inconsistent with alliancing principles. I rei
INFORMATION terate that
Kainga Ora’s answer is no.
I hope this clear and final position from Kainga Ora on this matter can be accepted and that we can
we can all move forward and work on our future, including making it commercially successful for all
parties.
OFFICIAL
THE
Regards,
Mark.
UNDER
_____________________________
Mark Fraser
General Manager, Urban Development and Delivery
Kainga Ora Homes and Communities
s 9(2)(a)
RELEASED
2
Out of Scope
-----Original Message-----
1982
From: Mark Fraser [mail to:[email address]]
Sent: 16 June 2023 08:34
ACT
To: Shanon Tapp [mail to:[email address]],Nathan Palmer [mail
to:[email address]],Sarah Anderson [mail
to:[email address]],Neil Mayo [mail to:[email address]]
Subject: In Confidence- Piritahi Extraordinary Escalation - draft
Team, see my thoughts below. This is a brain dump getting it off my chest. Nathan, I know that you are
going to put some numbers together, maybe that helps.
If we are going to say no we will have to say why, this is what I’m doing below. I’m not
INFORMATION saying this
should be used/sent but I’m putting the idea out there as a conversation starter.
s 9(2)(a)
OFFICIAL
The Piritahi PAB paper titled [CHECK] and the discussion of Thursday 15 June, was seeking PAB
approval of a variation for consequential costs post Covid and mitigation for the the extraordinary
escalation that has occurred in the economy the last couple of years, including the construction
THE
sector, over and above those costs already paid by Kainga Ora.
The PAB did not reach agreement as there is a split between the NOPs (in support) and the owner
participant (against). UNDER
During and since covid the commercail position of the alliance is worse than it would have been had
the pandemic and particularly had the high inflation of recent years not occurred. This is not in
dispute. It is also clear that the causes were beyond the control of the alliance. However, once known
there was opportunity for the alliance to manage them and with hindsight it did not manage as
aggressively as it perhaps should have.
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The paper presented to the PAB goes to some effort to explain the quantum of the commercail
impacts, although I note that it does not provide a worked example from a TOC from the period in
question, despite repeated requests by Kainga Ora for such an approach. We can only presume
because it is not possible or it does not support the argument.
As I point out above, that there has been a negative commercail impact on the alliance of events of
the last few years is not in dispute. The question that needs to be answered and is not, is why is the
impact a client risk and not an alliance risk? A core principle of alliancing is risks are placed were they
1
can be best managed and then having done so they are then shared. While events in question are
unprecedented, they were in the right place for their managment and there were shared. Kainga Ora
has already paid direct cost arising from the pandemic that could not have been foreseen.
This discussion on extra ordinary escalation being a variation has been running for well over a year
and despite the effort applied to it, the case remains weak. For that reason Kainga Ora does not
accept the proposal for a variation and the removal of the historical risk from the alliance.
We acknowledge that as profit making businesses it is commercially rational for the NOPs to seek
betterment on a negative commercail position. Perhaps even more so given the negative overall pain
position the alliance is currently in. However, as we all know the performance of the allince to date
has been well below acceptable and we’ve all had a part to play in this. We have worked hard and
constructively to turn it around and set a path for future success. In doing this and resolving some
1982
historical issues, including many commercail ones, Kainga Ora have been fair and at time perhaps
even generous, reducing some of the negative commercail impacts on NOPs of poor to date
ACT
performance.
Next week we sign a contract extension of five years for Piritahi, where despite the performance
issues to date, Kainga Ora in backing it’s future and is confident that it will be successful. The work
done by the NOPs and the alliance has provided this confidence. The work ahead within that
extension is in the order of $1 billion of design and civil construction activity and Piritahi will be be
asked to deliver the vast majority of it. We consider the protracted and poorly articulated request for
commercail betterment that is the focus of this variation, and its timing relative to our reconfirmed
future, poor judgement by the NOPs and inconsistent with alliancing principles. I rei
INFORMATION terate that
Kainga Ora’s answer is no.
I hope this clear and final position from Kainga Ora on this matter can be accepted and that we can
we can all move forward and work on our future, including making it commercially successful for all
parties.
OFFICIAL
THE
Regards,
Mark.
UNDER
_____________________________
Mark Fraser
General Manager, Urban Development and Delivery
Kainga Ora Homes and Communities
s 9(2)(a)
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-----Original Message-----
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From: Mark Fraser [mail to:[email address]]
Sent: 23 June 2023 11:56
ACT
To: Shanon Tapp [mail to:[email address]],s 9(2)(a)
]
Subject: Re: IPEWA AWARDS
CAUTION: External email. Do not click or open attachments unless you recognise the sender and
know the content is safe. If unsure use the Report Phishing button.
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Could s 9(2)(a) and s 9(2) present to the Kainga Ora Board when they meet them in July?
(a)
Regards,
OFFICIAL
Mark.
THE
_____________________________
Mark Fraser
General Manager, Urban Development and Delivery
Kainga Ora Homes and Communities
s 9(2)(a)
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-----Original Message-----
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From: Shanon Tapp [mail to:[email address]]
Sent: 5 July 2023 13:04
To: Sarah Anderson [mail to:[email address]],Mark Fraser [mail
ACT
to:[email address]]
Subject: RE: IDC Briefing
Hi Sarah,
This is good.
Mention the IPWEA award. This helps with the “Innovation” conversation. I’ve let John Bridgeman know
anyway, but be cool for
INFORMATION
s 9(2)
to note it.
(a)
We need to support the Alliance with their role, and not confusing it with the wider KO remit. Focus on
the Construction Plus & sustainability stuff. Maybe Waste Minimisation and house relocations?
Let s
know that the little innovation stuff is of high value. So feel free to through some small ideas in
there.
9(2)
OFFICIAL
(a)
Other than that, its really good.
THE
I’m happy to come and have a cuppa with Mark/you and catch up if you guys feel its useful
Ta
Shanon
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-----Original Message-----
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From: Mark Fraser [mail to:[email address]]
Sent: 5 July 2023 13:27
ACT
To: Shanon Tapp [mail to:[email address]],Sarah Anderson [mail
to:[email address]]
Subject: Re: IDC Briefing
I’m with Shanon. Good plan. Don't speed too much time on the wider stuff but you probably need to
cover it as they will ask. Could s 9(2)(a)
bring the big award and present it to the board?
INFORMATION
Regards,
Mark.
_____________________________
OFFICIAL
Mark Fraser
General Manager, Urban Development and Delivery
Kainga Ora Homes and Communities THE
s 9(2)(a)
From: Shanon Tapp
UNDER
Sent: Wednesday, July 5, 2023 1:04:35 PM
To: Sarah Anderson ; Mark Fraser
Subject: RE: IDC Briefing
Hi Sarah,
This is good.
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Mention the IPWEA award. This helps with the “Innovation” conversation. I’ve let John Bridgeman know
anyway, but be cool for s 9(2) to note it.
(a)
We need to support the Alliance with their role, and not confusing it with the wider KO remit. Focus on
the Construction Plus & sustainability stuff. Maybe Waste Minimisation and house relocations?
Let s
know that the little innovation stuff is of high value. So feel free to through some small ideas in
there.
9(2)
(a)
1
Other than that, its really good.
I’m happy to come and have a cuppa with Mark/you and catch up if you guys feel its useful
Ta
Shanon
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Document Outline