1 Kainga Ora Piritahi Alliance Team Health Check Survey Report May 2022.pdf

BRSRESULTS.COM
KĀINGA ORA
MAY 2022
PIRITAHI ALLIANCE TEAM HEALTH CHECK
ACT 1982
INFORMATION
RELEASED UNDER THE
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link to page 3 link to page 5 link to page 7 link to page 9 link to page 14 link to page 18 link to page 21

CONTENTS

1982

THE
Executive Summary
3
ACT
Introduction
5
Summary themes and findings
7
Recommendations
9
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Implementation Plan
14
Appendix A: Interview and focus group themes
18
Appendix B: Survey feedback
21
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EXECUTIVE SUMMARY

BRS was engaged by Kāinga Ora to undertake an Alliance Health-check of the Piritahi Alliance to identify what is
working well and what can be improved.
The health-check found that the Alliance has achieved its initial objectives of delivering super lots at scale and pace
and there were a number of achievements that can be celebrated.
However, the health-check also found considerable dis-satisfaction with the Alliance particularly amongst Kāinga Ora
staff who felt the delivery model is expensive and is not achieving value for money.  The health-check found that there
is a need to address a number of areas which included:
1982
1.  Value: There is a perception that the Alliance is an expensive delivery model  THE
2.  Target Outturn Cost: There is a perception that the TOC process is conservative and not driving cost efficiency. It
was also noted that the time taken to reconcile and approve project TOC’s needs to be addressed
ACT
3.  Change: Scope briefs from Kāinga Ora require more rigour to reduce changes. There was noted there is a need to
close out ageing change requests
4.  Program: Project Managers don’t feel there is transparency over program and there is regular slippage over
milestone dates. This is causing frustration around management of interdependencies with Build Partners
UNDER
5.  Cost: Project Managers don’t feel there is transparency over expenditure at Precinct/ program level. PAB have
also concerned around slippages in estimates at completion and reliability of cost forecasts
6.  Alignment: Staff on the Alliance don’t feel that PAB, Kāinga Ora and the AMT are aligned on the priorities and
direction of the Alliance. There was a perception that the AMT is building a corporate entity compared with the
expectation from the PAB wanting to have a return to basics around project management and delivery
7.  Collaboration: There is a perception from Alliance staff that there is a master slave culture rather than a
collaborative culture.  Piritahi staff felt at times that Kāinga Ora operated more as a client than an Owner
Participant
INFORMATION
8.  Shared Risk: There is some misunderstanding as to what collaboration looks like and how the Owner Participant
and the Alliance work together around shared risks.  Staff in both Piritahi and Kāinga Ora were unable to
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articulate what shared risks they should be collaborating together

The health-check identified that there is a clear desire within Kāinga Ora and the PAB to improve the fundamental
project management of the Alliance with a tighter focus on program, quality and cost.  Operational staff at Kāinga Ora
are frustrated with the Alliance with a perception that it does not deliver value for money, with many staff expressing
the desire to move towards an alternative delivery approach.
The AMT appears to be trying to address this however there does not appear to be alignment on how to achieve cost
reductions and improved project management.  There is a perception at a number of levels that the AMT is building a
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corporate entity and is becoming disconnected from the core business of delivering physical works in an efficient and
low-cost approach.
The contract is due for renewal in December 2023 and a decision will need to be made around whether to extend the
contract or to look at alternative delivery models.  The consensus at senior levels appears to be that the Alliance
should continue beyond 2023 however improvements are required in how the Alliance delivers fundamentals around
program, quality and cost.  This view was not shared by operational staff in Kāinga Ora who felt the contract should
not be extended.
Weighing up several factors it is recommendation of this health-check that Kāinga Ora should look to extend the
contract to give the Alliance time to realise its full potential.  Some of the current challenges faced by the Alliance are

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not solely the responsibility of the Non-Owner Participants (NOPs) but also attributable to the procurement, early

establishment of the Alliance and directions set by Kāinga Ora.
It Is the recommended that a sole source procurement process is undertaken kicking off late 2022 whereby the
existing NOPs are given the opportunity to re-bid for a contract extension.  This would provide a opportunity for
Kāinga Ora and the NOPs to renegotiate aspects of the Alliance which are not meeting the parent company needs or
which are not delivering value for money.
In the meantime, it is recommended that a number of actions are put in place to address some of the opportunities
identified in this health-check which include:
•  Alignment of the APM and AMT around the direction of the PAB in terms of bringing a tighter focus on program,
1982
quality and cost.  This will require a restructure of the AMT to ensure there is the right skill sets within the team to
deliver on this objective
THE
•  Restructuring AMT and PAB meetings to increase focus on deep diving on program, quality and cost performance
and precinct and project level
•
ACT
  Aligning the Alliance Charter, Key Result Areas, Key Performance Indicators and Limb3 payment to incentivise
outcomes around fundamentals with regards to program, quality and cost
•  Undertaking a detailed review of the organisational structure with a view to reduce headcount and cost
•  Decentralising the span of control to precinct / site level so people delivering the physical works are empowered
with the tools as well as held accountable around program, quality and cost
•  Engaging a third-party process engineering specialist to look at debottlenecking and improving quality in the
UNDER
project development phase (i.e., project briefs, value engineering, TOC reconciliation)
•  Strengthen operational processes and capability around project controls and project management to improve
management of program, quality and cost

Resolve outstanding commercial matters to allow staff to move forward and have a future focus without ageing issues
impacting on the relationship between Kāinga Ora and Piritahi.
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INTRODUCTION

The Auckland Civils Alliance Programme (ACAP) has been established to enable Kāinga Ora to increase the supply of
social, affordable and market housing in Auckland.
Kāinga Ora, as Owner Alliance Participant (OP), has entered into an Alliance with Hick Bros, Dempsey Wood, Tonkin
and Taylor, Harrison Grierson, and Wood & Partners as the Non-Owner Participants (NOPs) to form the Piritahi
Alliance. The services involved in the delivery of the Programme include planning, consenting, design, consultation
and construction.
Piritahi was formally established in December 2018 by HLC (now Kāinga Ora) to deliver all civil design and construction
1982
work in the four Auckland Large Scale projects (LSP’s) in Northcote, Mount Roskill, Mangere, Oranga. This was
expanded to include a fifth LSP, Tamaki early on.  The LSP’s span across a 20-year program resulting in approximately
40,000 homes.
THE
Kāinga Ora and Piritahi originally agreed, ‘Scale and Pace’ as an overarching objective. This objective has been reset, at
Kāinga Ora’s request been reset to ‘Repeatable, Efficient and Inclusive’.   Through this review this was expressed as
ACT
getting back to basics around program, quality and cost.
The Alliance model has been selected to provide the necessary flexibility as the scope and definition of the work
develops.  The programme is comprised of non-contiguous development areas so works and activities within these
areas will be structured into packages.   This means that Kāinga Ora will have considerable operational and contracting
flexibility in the delivery of this complex programme.
UNDER
Alliance Objectives
Under the Programme Alliance model, Kāinga Ora will collaborate with the NOPS to deliver the civil works programme
and share the risks and rewards associated with delivery. Risks and rewards will be shared in accordance with the
commercial and legal framework, which is included within the ACAPA.
The Alliance Governance Plan states that the Alliance objectives include:
•  Prioritising and strengthening the health, safety and the wellbeing of our teams and communities
•  Attract, retrain and grow a champion team
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•  Seamless delivery – flawless delivery
•  Deliver outstanding public value
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•  Successful collaborations with our delivery partners
•  Breakthrough design and construction efficiency
•  Minimising disruption to our communities
•  Respect and enhance the environments in which we work.
Alliance Framework
Alliancing is a widely used delivery model in for design and construction on major projects.  Under an Alliance the OP
and NOPs enter an Alliance agreement to deliver design and construction works as a partnership.
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The intention is that the OP and NOPs work together to achieve the Alliance objectives focusing on collaboration
around shared risks.  Alliancing is generally used where the OP and NOP work together to de-risk certain aspects of
the design and construction process.  The fundamental difference between Alliancing and other delivery models is
that risks are shared between the owner and the NOPs.
Generally accepted principles in Alliancing are as follows:
•  Risk and opportunity sharing
•  Commitment to ‘no disputes
•  Best-for-project unanimous decision-making processes

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•  No fault – no blame culture

•  Good faith
•  Transparency expressed as open book documentation and reporting
•  Joint management structure
Health-check objectives
Kāinga Ora engaged BRS as an independent consultant to undertake a health check and benchmarking exercise of the
Piritahi Alliance primarily focused on the effectiveness of the leadership and operations. Key objectives of the health-
check included:
1982
•  Clarity and review of the Piritahi roles and functions
•  Relationships and linkages between the Owner Participants and Non-Owner Participant organisations and where
opportunities for improvement exist
THE
•  Review of the membership of the PAB, AMT and Senior Leadership Groups
•  Review of the Piritahi meeting processes both within the Alliance and within the Kāinga Ora OIM team
ACT
•  Areas of investment for the Alliance – are we focusing on the right areas
•  Ensuring there is the correct balance between strategic and operational focus
•  Feedback from clients and home organisations.
Methodology
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Extensive consultation was undertaken through interviews, staff focus groups, attendance at PAB meetings, surveys
and health-check of background documentation.  The health check also considered benchmarking and lessons learnt
from other Alliances that provide similar services and scale and nature.
Throughout this health-check, the following people were consulted:
•  Program Alliance Board (PAB)
•  Alliance Management Team (AMT)
•  Owner Interface Manager (OIM)
•  Focus groups from Piritahi Alliance
INFORMATION
•  Focus groups from Kāinga Ora
•  Senior Members from Kāinga Ora
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In addition, detailed surveys were undertaken with the PAB, AMT, Kāinga Ora, and the wider Alliance team.
Independent verification of staff views and perspectives was undertaken through qualitative benchmarking to other
Alliances in New Zealand.
Further verification was undertaken through review of key documents, PAB reporting and other reference documents.
Whilst every effort has been made to bring independent experience and evidence to the health-check, the nature of
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staff consultation can result in a degree of subjectivity.

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SUMMARY THEMES AND FINDINGS

Detailed findings from the interviews and surveys are included in Appendix A and B of this report.  Below represents
a summary of the themes which emerged from this data, as well as independent observations and Alliance experience
from the BRS consultants.
What the Alliance should celebrate?
The health-check identified several areas where the Alliance has performed well and should celebrate its
achievements.  These include:
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1.  Safety: Leading practice in safety leadership and management of critical risks.  Elements observed during the
health-check are a step change for the New Zealand industry
THE
2.  Workforce: There is an engaged workforce which is committed to the cause.  Commitment and passion were
amongst staff in both Kāinga Ora and Piritahi were observed as a key strength
ACT
3.  Delivery: Delivery of super lots at scale and pace with over 80 projects delivered.  This was one of the core
objectives as to why the Alliance was established
4.  Brownfields: Navigating complex risk profile around brownfields construction.  The complexity around working in
this environment should not be underestimated
5.  Stakeholder: Provided a coordinated approach to stakeholder engagement. This is critical in protecting Kāinga
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Ora’s reputation
6.  Best Practices: Provided a platform for uniformity and consistency, and delivered a focus on continuous
improvement and leading practices
7.  Relationships: There are constructive working relationships at senior levels
8.  Improvement: Recent improvements with the appointment of a new Board Chair and adopting of the Better
Alliancing plan.  Improving practices with regards to TOC development, infrastructure planning, and
programming. There is need for continual improvement.
INFORMATION
Where can the Alliance improve?
Whilst the Alliance has achieved in many areas, the level of satisfaction amongst Kāinga Ora staff is a key area of
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focus. This can be observed through the findings In Appendix A and B.
The key areas that are causing dissatisfaction are summarised as follows:
1.  Value: There is a perception that the Alliance is an expensive delivery model
2.  Target Outturn Cost:  There is a perception that the TOC process is conservative and not driving cost efficiency.  It
was also noted that the time taken to reconcile and approve project TOC’s needs to be addressed
3.  Change: Scope briefs from Kāinga Ora require more rigour to reduce changes.  There was noted there is a need to
OFFICIAL
close out ageing change requests
4.  Program:  Project Managers don’t feel there is transparency over program and there is regular slippage over
milestone dates. This is causing frustration around management of interdependencies with BuildPartners
5.  Cost: Project Managers don’t feel there is transparency over expenditure at Precinct/ program level. PAB have
also concerned around slippages in estimates at completion and reliability of cost forecasts
6.  Alignment:  Staff on the Alliance don’t feel that PAB, Kāinga Ora and the AMT are aligned on the priorities and
direction of the Alliance. There was a perception that the AMT is building a corporate entity compared with the
expectation from the PAB wanting to have a return to basics around project management and delivery

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7.  Collaboration:  There is a perception from Alliance staff that there is a master slave culture rather than a
collaborative culture.  Piritahi staff felt at times that Kāinga Ora operated more as a client than an Owner

Participant
8.  Shared Risk: There is some misunderstanding as to what collaboration looks like and how the Owner Participant
and the Alliance work together around shared risks.  Staff in both Piritahi and Kāinga Ora were unable to
articulate what shared risks they should be collaborating together
The AMT appears to be trying to address the above areas however there is misalignment between the PAB and the
AMT around how to achieve this.  PAB would like to see a hands-on approach where the basics are done well around
program, cost and quality.  In comparison the AMT appears to be focused on building organisational best practice
1982
systems and processes.  This was evident in the PAB meeting that was observed where many of the presentations
focused on systems, processes and capabilities rather than operational deep dives on project performance.
THE
The level of frustration at operational level in Kāinga Ora is significant and there is urgent need for action to ensure we
are living Alliancing at is best.
ACT
It was acknowledged during the health-check that many of the challenges faced by the Alliance do not solely lie with
the NOPs.  Work also needs to be undertaken within Kāinga Ora to address its approach to Alliancing and its approach
to partnering in becoming a mature and intelligent alliancing client.
UNDER
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RECOMMENDATIONS

Contract Extension
Observation
The contract is due for renewal in December 2023 and a decision will need to be made around whether to extend the
contract or to look at alternative delivery models.
The consensus at senior levels in the PAB appears to be that the Alliance should continue beyond 2023 however
improvements are required in how the Alliance delivers fundamentals around program, quality and cost.   1982
This view was not shared by operational staff in Kāinga Ora who felt the contract should not be extended
Some of the current challenges faced by the Alliance are not solely the responsibility of the Non-Owner Participants
THE
(NOPs) but also attributable to the procurement, early establishment of the Alliance and directions set by Kāinga Ora.
It is recommended that Kāinga Ora look to extend the contract for the Alliance to give time for it to realise its full
ACT
potential.
Recommendations
It is recommended that Kāinga Ora extend the contract to give the Alliance time to realise its full potential.
In progressing with an extension of the Alliance contract it is recommended that a sole source procurement process is
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undertaken whereby the existing NOPs are given the opportunity to re-bid for a contract extension.  This would allow
Kāinga Ora to renegotiate aspects of the Alliance such as:
•  multipliers and mark ups
•  cost allocations between the PTOC and the Limb 2
•  risk allocation and variation benchmarking exercise
•  strategies to reduce overheads and drive value for money
•  ownership of assets such as IT equipment
•  removing korahi structure and employing personnel direct through the NOPs

INFORMATION
The procurement plan for this extension will need to be initiated in the next 90 days to allow time for the contract to
be agreed prior to December 2023.
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Leadership Alignment
Observation
There is a clear direction from Kāinga Ora and the PAB to improve the fundamental project management of the
Alliance with a tighter focus on program, quality and cost.
Kāinga Ora senior project managers are frustrated with the Alliance with a perception that it does not deliver value for
money, with many staff expressing the desire to move towards an alternative delivery approach.
OFFICIAL
There is a perception that the AMT is building a corporate entity and is becoming disconnected from the core business
of delivering physical works in an efficient and low-cost approach.
The AMT appears to be trying to address this however there does not appear to be alignment with the PAB on how to
achieve cost reductions and efficiency.
Recommendations
It is recommended that the PAB engage in formal alignment conversations with APM around future directions and
priorities of Alliance and role of AMT in delivering on the PAB’s expectations.    These should be documented through

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formal objectives and quarterly review of performance, including targets set for program accuracy, cost certainty and
reduction in program overheads.

It is recommended that the PAB undertake a formal review of the AMT composition to ensure the right skill sets are in
place which will deliver improvements in program accuracy, cost certainty and reduction in program overheads.  It Is
recommended that the AMT is strengthened with people who bring Alliance experience as well as constructability,
value engineering and project controls.
It is recommended that the PAB undertake a formal review of the PAB composition.  The current PAB is relatively large
which can dilute decision making and oversight.  It is recommended that the PAB size is reduced to two client
representatives, two contractor representatives, and two designer representatives.
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It is recommended that AMT and PAB meetings are restructured with a greater focus on project controls.  At least 50
% of the AMT and PAB meetings should be focused on detailed review of risk, opportunity, critical path, expenditure
THE
and estimate at completion for each project.
Charter, KRA Framework and Limb3
ACT
Observation
There has been a shift in direction of the Alliance.  The focus during the establishment was around building lots at
scale and pace. Whilst this was achieved it has resulted in dissatisfaction around value for money and program
management.
UNDER
There is now a focus getting the fundamentals right around program, quality and cost.
Recommendations
It Is recommended through the Better Alliancing plan that the Charter is updated to reflect the PAB's priorities around
program, quality and cost.
It is recommended that the Key Result Area (KRA) and Key Performance Indicator (KPI) framework is updated to
reflect the PAB's priorities around program, quality and cost.
At the same time the Limb3 Framework should aligned to the revised KRA and KPI framework so that the NOPs are
INFORMATION
financially incentivised to achieve objectives around program, quality and cost.
It is recommended that staff education sessions are undertaken on the revised Charter and KRA framework to ensure
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clarity top to bottom around priorities and this is embedded through the roll out of the Better Alliancing Plan.
Program Overheads
Observation
At the time of the review PTOC3 was approx $34 million which was overseeing approx $135 million of design and
construction works.  This is a tension point with Kāinga Ora who don’t feel this represents value for money relative to
the work being delivered.
OFFICIAL
Recommendations
It is recommended that a full restructure is undertaken to reduce headcount and reduce the expenditure in PTOC4.
This should be developed on a first principles basis where only roles that are required are retained.
In this restructure the following considerations should be applied:
•  Reducing layers of management by having senior precinct staff who are accountable for program delivery on the
AMT
•  Identify roles which can be delivered part time or on a as required basis. I.e., designers, specialist experts,
professional roles such as finance/ IT/ etc.

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•  Remove roles which should be delivered by the NOPs through the Limb 2. I.e., examples may include recruitment,
training, information technology, health and safety systems etc.

•  Look for opportunities to reduce duplication between the Alliance and Kāinga Ora
•  Review corporate functions in the Alliance moving to a back-to-basics approach.  Identify whether the level of
service in the PTOC is required to deliver on the core objectives
•  Review non-technical roles provided through the NOPs that could be employed on fixed term contracts directly by
Kāinga Ora so they don’t incur mark ups and multipliers

It is also recommended that Piritahi look for savings in office leases, car parking and IT systems through this
restructure.
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It is estimated that there are potential $5 to $10 million per annum savings through reducing headcount and focusing
on a back-to-basics approach.
THE
Span of control
ACT
Observation
The Alliance Is focused on getting back to basics around project management and improved management of program,
quality, and cost.  This may be better achieved by moving towards a decentralised management approach where
there is more empowerment and accountability at precinct level to manage their program of works.
Recommendations
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As part of the PTOC restructure it is recommended that the Alliance adopt a decentralised approach so there is
greater focus on coal face activities around project management and working in collaboration with Kāinga Ora senior
project managers. Resources within the PTOC such as cost controllers and programmers should be redeployed to
support at precinct level and be site based.
Precincts would be empowered and accountable to work in partnership with Kāinga Ora senior project managers:
•  Provide greater visibility to over program, critical path and practical completion
•  Oversee costs and work together on value engineering, cost reduction and efficiency
•
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  Manage risk and opportunity and ensure reliable cost to complete forecasting
Project and TOC Development
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Observation
A number of gaps were identified around Project and TOC Development.  These included:
•  Lack of rigor in scope brief’s which is resulting in considerable changes
•  Time taken to reconcile the TOC and obtain approvals
•  Value engineering in the design process to reduce cost of construction
•  Reduction in design fees as a % of construction costs
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•  Alignment with the independent estimator
•  Clarity around roles and approvals
•  Alignment around underlying productivity assumptions
•  Risk appetite being adopted
•  Delays around third-party interfaces such as council, utilities and other stakeholders

Recommendations
It is recommended that the Alliance engage an independent 3rd party to undertake a LEAN/ Six Sigma review over the
project development process.

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Project Controls – Cost, Program, Reporting

Observation
A number of gaps were identified around project controls regarding cost, program and reporting. These included:
•  Estimates at completion are slipping
•  Kāinga Ora site staff don’t feel they receive adequate cost reporting
•  Kāinga Ora site staff don’t feel there is transparency over program and critical path
•  Program milestones are slipping, and Kāinga Ora site often feel they get surprises
•  There need for alignment around handover completion with BuildPartners
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Recommendations
THE
It is recommended that the AMT make project controls a significant focus area of improvement over the next 12
months, including
ACT
•  AMT to undertake ‘hands on’ monthly precinct level deep dives cost and program. This is consistent with best
practice in the industry where contractors would spend a full day per month per project on cost and program deep
dives
•  Implement recommendation above around how AMT and PAB meetings are structured
•  Implement recommendation above around span of control to decentralise project controls to precinct level
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•  Improve cost reporting at precinct level to provide greater accessibility over project costs to Kāinga Ora senior
project managers
•  Improve critical path management at precinct level to provide improved management of program, as well as
improved certainty over practical completion for BuildPartners
•  Strengthening forecasting processes to improve reliability of forecast cost to complete, earned value reconciliation
and forecast final cost
•  Adopt a joined-up approach on programming between the Alliance and Kāinga Ora senior project managers to
improve management of interdependencies with BuildPartners
Collaboration around shared risks
INFORMATION
Observation
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There is a perception from staff that the Alliance operates with a master slave culture rather than a collaborative
culture.  Piritahi staff felt at times that Kāinga Ora operated more as a client than an Owner Participant.
There was also misunderstanding as to what collaboration looks like and how the Owner Participant and the Alliance
work together around shared risks.  Staff in both Piritahi and Kāinga Ora were unable to articulate what shared risks
they should be collaborating together
Further survey results and the focus groups indicate that relationships between Kāinga Ora and the Alliance are
fractured.   OFFICIAL
Recommendations
It is recommended that the Alliance invest in the alignment of staff at both Kāinga Ora and Piritahi around what
collaboration and provide clarity on shared risk.  This includes:
•  Documenting the shared risks and focus areas for the Alliance
•  Formalise key touchpoints between Kāinga Ora and the Alliance aligned to these shared risks
•  Implement the Better Alliancing Plan
•  Co-location of Alliance and Kāinga Ora staff wherever possible

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•  Identify individuals who do not live the Alliance principles and either provide coaching or look to remove from the
Alliance

•  Embed the Alliance Principles of “no blame” between the Owner and Non-Owner Participants with a greater focus
on working together to address problems
Commercial Matters
Observation
There are a number of commercial matters which continue to cause conflict and tension.   It is understood these
relate to earlier projects and are historical.
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Recommendations
It is recommended that the Alliance undertake:
THE
•  A page turns on the PAA and undertake a variation benchmarking process to ensure Kāinga Ora and Piritahi staff
are aligned on risk allocation. I.e., which change requests are variation to the TOC
ACT
•  Ensure the Alliance provides sufficient detail to support invoicing so that senior project managers have confidence
to approve invoices
•  Kāinga Ora ensure all invoices are paid on time
•  PAB to expediate and close out old change requests
•  PAB to resolve outstanding issues around Covid escalation
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IMPLEMENTATION PLAN
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#
Focus area
Action
Who
When
THE
Development of procurement plan and request for proposal (RFP) document for sole
ACT  Shannon Tapp  October 2022
source procurement.
Contract Extension: The contract is
Commercial alignment with NOPs to renegotiate multipliers and mark ups with Design
due for renewal in December 2023
NOP's.
Shannon Tapp
October 2022
3.1
and a decision will need to be
cost allocations between the PTOC and the Limb 2, risk allocation, strategies to reduce
made around whether to extend
overheads, ownership of IT equipment and removing korahi structure.
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the contract or to look at
alternative delivery models.
Final contract negotiation with NOPs for contract extension.  Revist multipliers and mark
ups, Limb2 cost allocations, risk allocation, strategies to reduce design fees and PTOC,
Shannon Tapp
June 2023
ownership of IT equipment and removing korahi structure.
Engage in formal alignment conversations with APM around future directions and priorities
of Alliance and role of AMT in delivering on the PAB’s expectations.    These should be
Graham Darlow
June 2022
documented through formal objectives and quarterly review of performance, including
/ Mark Fraser
Leadership Alignment: There is a
targets set for program accuracy, cost certainty and reduction in program overheads.
perception at a number of levels
INFORMATION
(PAB, Kāinga Ora and Alliance
Undertake a formal review of the AMT composition to ensure the right skill sets are in
operational staff) that the AMT is
place which will deliver Improvements in program accuracy, cost certainty and reduction in
Graham Darlow
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building a corporate entity and is
July 2022
3.2
program overheads.  AMT is strengthened with people who bring Alliance experience as
/ Mat Tucker
becoming disconnected from the
well as constructability, value engineering and project controls.
core business of delivering physical
works in an efficient and low-cost
PAB undertake a formal review of the PAB composition.  Reduce PAB size is reduced to two
Graham Darlow
approach.
client representatives, two contractor representatives, and two designer representatives.
July 2022
The current independent chair should continue as one of the contractor representatives.
/ Mark Fraser

AMT and PAB meetings are restructured which a greater focus on project controls.  At least
Graham Darlow
July 2022
50 % of the AMT and PAB meetings should be focused on detailed review of risk,
/ Mat Tucker
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1982
#
Focus area
Action
Who
When
opportunity, critical path, expenditure and estimate at completion for each project.
THE
Mat Tucker /
ACT
KRA and KPI Framework:  There
The Charter is updated to reflect the PAB's priorities around program, quality and cost.
August 2022
Sarah Anderson
has been a shift in direction of the
3.3
Alliance.  There is now a focus
KRA, KPI and Limb3 framework is updated to reflect the PAB's priorities around program,
Mat Tucker /
August 2022

getting the fundamentals right
quality and cost.
Sarah Anderson
around program, quality and cost.
Staff education sessions on the revised Charter and KRA framework to ensure clarity top to
Mat Tucker /
September

UNDER
bottom around priorities.
Sarah Anderson
2022
Program Overheads:  At the time
of the review PTOC4 was estimated  A full restructure is undertaken to reduce headcount and reduce the expenditure in PTOC4.
3.4
Mat Tucker /
at around $34 million which was
This should be developed on a first principles basis where only roles that are required are
July 2022
Sarah Anderson
overseeing approx $135 million of
retained.   See above for detailed focus areas.
design and construction works.
The Alliance adopt a decentralised approach so there is greater focus on coal face activities
Span of control: The Alliance is
around project management and working in collaboration with Kāinga Ora operational site
Mat Tucker /
September
INFORMATION
focused on getting back to basics
staff. Resources within the PTOC such as cost controllers and programmers should be
Sarah Anderson
2022
3.5
around project management and
redeployed to support at precinct level and be site based.
improved management of
RELEASED
program, quality, and cost.
Undertake skills assessment of the Precinct Directors to determine capability and
Mat Tucker /
September
development needs given recommended change in responsibilities.  Precint Directors will
Sarah Anderson
2022
play a greater role in new structure and be accountable for project quality and cost.
Project and TOC Development: A
It is recommended that the Alliance engage an independent 3rd party to undertake a
Andrea
3.6
number of gaps were identified
LEAN/ Six Sigma review over the project development process.   Focus areas for the
Hamilton /
July 2022
around Project and TOC
consultant would be on improving how Piritahi develops the scope, design and TOC with
Sarah Anderson
Development.
regards to:
OFFICIAL
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1982
#
Focus area
Action
Who
When
•  Rigor in scope brief’s
THE
•  Time taken to reconcile the TOC and obtain approvals
•  Value engineering in the design process to reduce cost of construction
ACT
•  Reduction in design fees as a % of construction costs
•  Alignment with the independent estimator
•  Clarity around roles and approvals
•  Alignment around underlying productivity assumptions
•  Risk appetite being adopted
UNDER
•  Management of third-party interfaces
AMT to undertake ‘hands on’ monthly precinct level deep dives cost and program. This is
consistent with best practice in the industry where contractors would spend a full day per
AMT
August 2022
month per project on cost and program deep dives
Improve cost reporting at precinct level to provide greater accessibility over project costs
Project Controls – Cost, Program,
AMT
August 2022
to Kāinga Ora site project managers
Reporting:
3.7
A number of gaps were identified
Improve critical path management at precinct level to provide improved management of
AMT
August 2022
around project controls regarding
program, as well as improved certainty over practical completion for BuildPartners
INFORMATION
cost, program and reporting.
Strengthening forecasting processes to improve reliability of forecast cost to complete,
AMT
August 2022
earned value reconciliation and forecast final cost
RELEASED
Adopt a joined-up approach on programming between the Alliance and Kāinga Ora site
AMT
August 2022
staff to improve management of interdependencies with BuildPartners
Collaboration around shared risks:
Documenting the shared risks and focus areas for the Alliance
AMT
August 2022
Misunderstanding as to what
3.8
Formalise key touchpoints between Kāinga Ora and the Alliance aligned to these shared
collaboration looks like and how
Sarah Anderson
August 2022
risks
the Owner Participant and the
Alliance work together around
Implement the Better Alliancing Plan
Mat Tucker
June 2022
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1982
#
Focus area
Action
Who
When
shared risks.
September
THE
Co-location of Alliance and Kāinga Ora staff wherever possible
Mat Tucker
2022
ACT
Identify individuals who do not live the Alliance principles and either provide coaching or
Mark Fraser /
September
look to remove from the Alliance
Mat Tucker
2022
Embed the Alliance Principles of “no blame” between the Owner and Non-Owner
AMT/ PAB
June 2022
Participants with a greater focus on working together to address problems
Page turn on the PAA and undertake a variation benchmarking process to ensure Kāinga
UNDER
September
Ora and Piritahi staff are aligned on risk allocation. I.e which change requests are variation
AMT
2022
Commercial Matters: Through the
to the TOC
health check there are a number of
3.9
commercial matters which
Ensure the Alliance provides sufficient detail to supporting invoicing so that Kāinga Ora
September
AMT
continue to cause conflict and
have confidence to pay invoices
2022
`
tension.   It is understood these
Kāinga Ora ensure all invoices are paid on time.
Sarah Anderson
July 2022
relate to earlier projects and are
historical.
PAB to expediate and close out old change request
PAB
December 2022
PAB to resolve outstanding issues around Covid
PAB
December 2022
INFORMATION

RELEASED

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APPENDIX A: INTERVIEW AND FOCUS GROUP THEMES

Interviews and focus groups were undertaken with staff and key stakeholders with the following people being
consulted:
Roles
Personnel
Caroline McDowall; Neil Mayo; Mark Fraser; Michael Lunjevich; Glen
Program Alliance Board / Alliance
Cornelius; Graham Darlow; Liam Sinden; Mark Williams; Peter Millar;
Management Team
Andrea Hamilton; Carol Moffatt; Mark Laithwaite; Mat Tucker; Shelley
1982
Prentice; Tim Mason; Tony Boynton
THE
Shanon Tapp; Nathan Palmer; Christian Hurzeler; Sarah Anderson; James
Kāinga Ora
D'Anvers; Adam Johnstone; Robert Graham;
Jo Johnson; Asha Rhodes; Saby Virdi; Umesh Daya; Tomas Ussher
ACT
Jon Friday; Owen Clements; Clint Every; Kusay Bearakat;
Peter Stratford; Chris Cole; Marcus Lin; Simon Murphy; Shannon
Alliance Staff
Richardson; Steve Finnemore; Struan Macleod; Matthew Wallace; Peter
Andrew; Andi Brotherston; Beth Stevens; Maria Hernandez-curry; Tina
Wigley; Dorita Munro; Peter Garizio; Erik Lopeti; Alex Burgess
UNDER
Bond CM
David Fehl

During these interviews and focus groups staff and key stakeholders were asked the following key questions:
•  What is working well?
•  What could be improved?

INFORMATION
There were consistent themes which emerged from the interviews and focus groups and the feedback was strongly
aligned to the survey outcomes outlined above as well as the experience of BRS who have supported a number of
Alliances in New Zealand and Australia.   Below is a summary of the feedback received:
RELEASED
Key themes: what is working well?
•  Delivered super lots at scale and pace with over 80 projects
•  Navigated complex risk profile around brownfields construction
•  Co-ordinated approach to stakeholder engagement sometimes going beyond the call of duty
•  Provided a platform for uniformity and consistency
•  Focus on continuous improvement and leading practices
OFFICIAL
•  There is an engaged workforce which is committed to the cause
•  Effectively established a new operating model, which provided a grounding for other Alliances in Wellington
•  Constructive working relationships at senior levels
•  Recent improvements with the appointment of a new Board Chair
•  Improving practices with regards to TOC development, infrastructure planning, and programming
•  Leading practice in safety leadership and management of critical risks

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Key themes: what could be improved?

•  Update the Alliance Charter to reflect the focus on program, cost and quality
•  Update the Alliancing principles to reflect the National Alliancing Guidelines
•  Providing greater clarity around the Alliance objectives and ensuring these are reflected in the AMT’s objectives,
Alliance KRA’s and the Limb 3
•  Refocusing the KRA framework and Limb 3 payment to reward performance with regards to program, cost and
quality
•  Simplify reporting to the PAB, focusing on program, cost and quality
•  Ensure time is allocated on the PAB agenda for forward looking views and discussions on risk and opportunity
1982
•  Finalisation of management plans which remain outstanding from the establishment phase of the Alliance
•  Collaboration and interface management between Kāinga Ora and the Alliance is targeted on shared risks
THE
•  Formalise the interfaces between Kāinga Ora and the Alliance providing clarity on decision making authority, roles
and responsibilities, and reducing the number of contact points through the development of a OIM management
plan
ACT
•  Greater support from NOP’s in terms of key functions such as recruitment, training, health and safety, finance and
information technology
•  Ensuring the right personnel are on the AMT who bring experience in Alliancing as well as design and construction
•  AMT adopt a more hands on approach to the Alliance around program, cost and quality to drive behaviour and
accountability in project management
UNDER
•  Kāinga Ora, PAB and AMT providing greater clarity to staff on risk allocation.  For example, clarity around whether
changes in scope are treated as part of TOC or whether they are a variation
•  Implement the recommendations identified from the PTOC health-check undertaken by Bond CM to give
confidence to Kāinga Ora around value for money
•  Reducing layers of management within the Alliance by reshaping the AMT to be delivery focused
•  Some staff are being recruited into the Alliance through a separate joint venture company and may not have
parent organisations to return to in the event their role is no longer required
•  Health-check DNOP multipliers and mark ups taking into consideration the high utilisation of Alliance staff as well
as corporate support provided by the Alliance
INFORMATION
•  Greater focus on value engineering through the design development process to achieve more efficient TOC
•  Early contractor involvement in development of design briefs with view to deliver efficiency of designs and TOC
•
RELEASED
  Look to market test TOC’s where Kāinga Ora do not feel that they are delivering value for money
•  Streamlining the approval and reconciliation process for the TOC with view to lock down approvals at 30 % design
•  Improving estimating practices and leverage lessons learned from earlier TOC’s to give greater cost certainty over
future TOC’s
•  Improving the alignment between the Alliance, Kāinga Ora and the Independent Estimator during the TOC process
to speed up the TOC reconciliation process
•  Ensure TOC benchmarking reflects comparable brownfields developments
•  Improve cost certainty around the TOC process
OFFICIAL
•  Resolving the backlog of ageing change requests and clearing the backlog so that the Alliance can move past
previous challenges
•  Resolving the Covid cost escalation and agree on a path forward
•  Improving accessibility of cost reporting to Kāinga Ora site level project managers so they have greater confidence
in cost control by the Alliance
•  Improving rigour of site level cost health-checks with joint health-checks of Kāinga Ora site project managers and
the Alliance
•  Providing improved supporting information for Alliance invoices to provide confidence for Kāinga Ora when
approving payment

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•  Ensure Alliance invoices are paid on time

•  Reducing micromanagement by Kāinga Ora such as health-checking timesheets etc
•  Clarify authority levels around approvals and decisions between Kāinga Ora and the Alliance, particularly around
approval of design briefs, scope and changes as part of the development of the OIM management plan
•  Improving rigour of cost forecasting to provide greater confidence to the PAB around estimates at completion
•  Improving transparency over program for Kāinga Ora site project managers so they can manage inter-
dependencies with BuildPartners
•  Improved critical path management and collaboration with Kāinga Ora site project managers to reduce risk of
program slippage
•  Relationship building with site-based project teams
1982
•  Identifying opportunities to second more Kāinga Ora staff into the Alliance or to co-locate to work as one team
where required
THE
•  Improved quality of design briefs from Kāinga Ora to reduce scope creep and change requests
•  Providing training to Kāinga Ora on the cost and ripple effective of poor quality design briefs and the impact of
ACT
change requests
•  Address “blame” culture and below the line behaviours where it exists with staff in Kāinga Ora or the Alliance by
educating all participants on the new Alliance Principles
•  Providing greater encouragement and support to members of the Alliance who feel under valued
•  Educating the Alliance on difference between passive culture which is compliant and bureaucratic vs a constructive
culture which is collaborative, empowered, lean and decisive
UNDER
•  Work in partnership to untie the knots and address ways of working with council asset owners
•  Ensure the Alliance is involved in discussions with CCO’s and aligned to the ways of working program being led by
Kāinga Ora
•  Greater integration between Kāinga Ora site-based teams and the Alliance
•  Decentralise resourcing to provide on the ground support to site teams around infrastructure planning, critical
path management, cost management and practical completion
•  Work in partnership to ensure right time completion of superlots for BuildPartners
•  Consideration to rebrand the Alliance such that it is seen as a delivery arm of Kāinga Ora rather than being its own
entity
INFORMATION

RELEASED
OFFICIAL

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APPENDIX B: SURVEY FEEDBACK

Surveys were undertaken with the PAB, AMT, Wider Team and Kāinga Ora staff.  Scoring is based on responses to
questions of 1) Strongly disagree, 2) Disagree 3) Neutral or 4) Agree or 5) Strongly Agree.
Qualitative responses to questions are shown below without edited to show the underlying sentiment of staff and
stakeholders.
It should be noted the below responses are subjective and can be clouded by individual perspectives:
Program Alliance Board Feedback
1982
Q1. Alliance principles
THE
Question
Weighted Average
ACT
We all win or lose together
2.83
We take shared responsibility for Alliance outcomes
3.67
We work as a single integrated team within the Alliance
3
All decisions by the PAB are “best for program”
3.83
UNDER
There is a no-blame culture between participants
2.67
Each participant provides full access to the resources of its parent company
2.33
Development of the TOC is transparent, and costs are open-book
4.17
The Alliance delivers innovative thinking
3.5
All participants are commitment to achieving outstanding outcomes
4
All participants provide unconditional support from their senior management
3
There is open and honest communication between participants
3.33
INFORMATION
Q2. Governance
RELEASED
Question
Weighted Average
PAB meetings are well run with agenda’s, actions and sufficient time available for
4
discussion
PAB is future focused on risk and opportunity
2.17
PAB is strategic and doesn’t drill into operational detail
2.5
Each participant’s commercial interests are respected
2.83
OFFICIAL
Each participant’s reputational interests are respected
3.5
PAB members connect with each other outside formal meetings
3.33
PAB members connect with the AMT outside of formal meetings
3.17
The PAB is stakeholder and community focused
3.67
PAB reporting is transparent and provides line of sight over performance
2.33
PAB members constructively deal with risks, problems and disputes
3.33
There are adequate controls in place to safeguard against key risks
2.67

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Question
Weighted Average

PAB provides constructive support and guidance to the AMT
3.67
PAM members spend time in field to provide visible leadership to the workforce around
3.83
safety
People and safety is a high priority to the PAB
4.33
Customers and community are at the forefront of all decision making
3.17
Q3. What we do well?
1982
•  The construction work volume gets done.
•
THE
  We celebrate our people well and provide what I think is a really positive work environment. Our construction sites
are well set up and prioritise safety. Our TOC development and pre-construction has made some good
improvement over the past year.
ACT
•  Strong desire exists within all PAB members to improve our performance as a team and see the best for the
Alliance.  I think we are improving in the governance of the Alliance with the next step to define our role and align
our focus.
•  Continuing to deliver a significant scale of works during challenging circumstances.
•  Delivering super lots on time. Adapting for the client and changing requests from the build partners. Caring for and
UNDER
working with the communities we are in.
•  Physical works
Q4. What does great look like in 12 months’ time?
•  A more collaborative PAB, AMT and Client culture and relationships. The Alliance is meeting everyone's
expectations, performing well, people enjoy it and it doesn't need defending.
•  Continuously improving H&S performance. Commercial position balanced in pain and gain across the programme
(winning some and losing some). Demonstrable lessons learnt applied to our recent projects. Owner participant
working collaboratively with the Alliance at all levels and convinced in the value that Piritahi provides across the
programme. A delivery focussed AMT leading a lean and effective programme team. A highly engaged workforce
INFORMATION
who feel that they do their best work while working in the Alliance. A track record of delivering on KOs clear
expectations.
RELEASED
•  Informed debate and discussion that improves the performance of the Alliance.  A healthy relationship with the
AGM and AMT/Less of a battle with the AGM and AMT.
•  Piritahi is known as highly effective and productive in the market and Kainga Ora is satisfied it is getting good value
in terms of cost for outcomes achieved.
•  Delivering infrastructure on time, budget and on value. There is no AIP CRs, the pain position does not get worse
every month. Engagement is high and our people want to work for the alliance
•  On time on budget, reduced PTOC.
OFFICIAL
Q5. What do we need to focus on to achieve great?
•  Much much higher focus on value for money, delivering the right amount of work for the right amount on money.
•  Resolve the historic backward looking change requests fairly and shake loose of that monkey on our backs.
Manage change better going forward. Lead the AMT to reshape our Alliance structure to the leaner project
focused one that KO expects. Deliver on our existing workload safely and to programme. Welcome in the NOPS
and KO key people -I think we all need to be more direct.
•  Strongly support the focus of getting back to basics by doing this ourselves.
•  Alignment between all parties on setting horizon by horizon goals and keeping things simple.
•  Deal with the basics. Focus on getting across and controlling the TOC budgets so the don't move month to month.
Understand, improve and make changes on how we deliver the work to meet the budgets. Understand and

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address the impact of covid on the existing TOCs, address how we manage escalation, right size the PTOC for the
expected workload, address and close out the AIP CRs.   Focus on employee engagement.

•  KO relationship.

Q6. What specific improvements can we make at PAB level?
•  Better understanding of how the alliance is performing and specific identified strategies to improve - agreed with
AMT which is current block. AMT don't see need. PAB know something needs to change but not clear on what or
how.
•  Be less passive. Health-check the AMT for right fit along with PTOC04 preparation. Set the agenda of our meetings
1982
early to ensure we get the most out of our short time together. Influence our Alliance more. Focus on the
important issues - keep our conversations resolving significant past issues, guiding current state, and helping team
anticipate future.
THE
•  1/3, 1/3, 1/3 focus for our interactions.  Hold the AGM and AMT to account better e.g. don't let key issues slip. Do
our own work, roll our sleeves up in-between meetings to get things sorted. Spend time sharing insights and
ACT
perspectives between PAB members
•  Education on what great governance looks like.  Demonstrating and living the agreed principles.
•  Help and guide the AMT to work in the operations to get it back on-track. Help the AMT with insights from our
own businesses which are client value focused. Support the AMT to be successful.
•  Clear actions and holding people accountable
UNDER

Kainga Ora Feedback
Q1. Customer Experience
Question
Weighted Average
Kāinga Ora receives value for money
1.38
Development of the TOC is transparent and costs are open-book
1.85
INFORMATION
The Alliance enhances the reputation of Kāinga Ora
2.08
RELEASED
The Alliance delivers outstanding outcomes
2.08
Alliance staff take initiate to solve problems and make things happen
2.23
Alliance staff work to meet or exceed your expectations
2.23
The PAB makes win/win decisions that are good for both you and their organisation
2.31
The Alliance delivers what they promised
2.08
Alliance staff approach special requests with interest and creativity
2.69
OFFICIAL
Alliance staff maintain standards and personal integrity
3.31
Alliance staff seem to enjoy working on the program
2.85
The Alliance delivers quality outcomes for Kāinga Ora’s customers
2.38
Alliance staff are willing to go out of their way to assist you
3.15
Alliance staff are helpful and supportive
3.15
Alliance staff try to satisfy your needs as a customer
2.46
The PAB is focused on the long-term relationship with Kāinga Ora’s
2.31

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Question
Weighted Average

Alliance staff treat you in a friendly manner
4.23
Alliance staff take time to listen to your concerns
3.31
Alliance staff make you feel important as a customer
2.46
Alliance staff show appreciation for you and what you can contribute
2.92

Q2. What we do well?
1982
•  Delivery of quality outcomes, working within an existing community and the sensitivities that come with that.
•
THE
  Not much
•  Nothing. Fundamentally; cost, programme and risk is not being managed well or even in a satisfactory manner. If
we can't meet the basic requirements, why are we here? The risk management tool Piritahi use is pretty good but
ACT
what is the point in having a well-documented failure?
•  Construction
•  Not much really. Everything is a shambles at the moment.  Nothing is delivered on time; programme extensions
are dumped on us without any real reason or justification and we are expected to simply accept it. Costs are not
fully understood and everything is "significantly" over budget without fair and transparent justification. The EFC
UNDER
changes every 2 months which is ridiculous. Invoices are just paid because we have to under the ACAP which is
something I’ve never ever heard of (paying invoices blindly without justification/reasoning for the work
undertaken in the claim period.  PCGs are a joke, including dashboards and knowledge of the staff attending the
PCG. Several examples where the staff attending the PCG don't find out the content of the PCG report until the
night before the PCG and have to muddle through it, often claiming that they can't answer a simple question
because they don't know why something was added or removed. We often never receive the PCG report prior to
the meeting, and if we do, it is max 30mins beforehand (on the odd occasion).
•  Central point of contact
•  Able to pick up a new package of works relatively quickly and get the process going. Once the TOC is set, the
construction and management of the scope of works is done quite effectively.
INFORMATION
•  Deliver quickly (once planning is complete and TOCs are agreed)
•  Some good technical team in Construction and Design.
RELEASED
•  Great people.
•  Delivery of TOCs, from house removal to construction, dealing with day-to-day community engagement, and
flexibility in tackling construction challenges.
•  Nothing that a standard civil contractor wouldn't do. Piritahi makes things harder.
Q3. What does great look like in 12 months’ time?
•  TOC's are priced/delivered quickly and more efficiently than what could be achieved in the market/without
Alliance contracting.
OFFICIAL
•  Piritahi is not there
•  A complete overhaul of the Alliance. If we can get back to doing the basics right great but if it hasn't happened
thus far, it's unlikely to happen now. Removal of the Alliance. End the contracts or phase out and start again.
•  Targets have been met, there are no surprises, communication on all matters is open and transparent with the
Development Teams. No huge overspends
•  No more alliance.
•  Targeted programme are being met, costs under control and quality delivery outcomes are met.

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•  Everyone in the Alliance understands what an alliance is and how we deliver packages of works within an alliance.
TOC process from brief to reconciliation takes less than 3months (depending on the package of works). TOC

reconciliation is a tick box and less than 5% difference is achieved
•  Efficient and streamlined internal (procurement, communication) processes, agreed solutions with Council and
CCOs to make applications more efficient, transparency from PAB on decisions in line with Alliance culture,
delivering on time, living Alliance culture and making best for Alliance decisions, less need for Kainga Ora PM
inputs, Kainga Ora able to get costs and informed feedback on options easily from Piritahi team.
•  Cost certainty and maintaining existing budget. Programme certainty with no programme blow outs, we deliver
our promises. Confident forecasting.
•  Better process. Streamlined effective reporting. Understanding of each other.
1982
•  Aligned TOC pricing between Piritahi and the IE.
•  Great in 12 months I don't believe is achievable as we are so far away from even "acceptable". Great is not really
achievable, not without an absolute clear out of management staff.  However assuming this is possible, GREAT
THE
would be market comparable costs and no time delay surprises.  KO to be able to trust Piritahi and have multipliers
and commercial arrangements that suit the work we are doing. However, at this point in time, GREAT for KO is
ACT
different than GREAT for Piritahi as for KO it would mean that we would have more flexibility to engage other
designers & contractors outside the ACAP agreement to get better results.
Q4. What do we need to focus on to achieve great?
•  Efficiencies in design, professional fees, speed of design outputs.  Managing programmes better to consistently
deliver on time.
UNDER
•  Full scale change
•  Standard practice is not being delivered. Great is a stretch. We've not managed to completed the basics.   Could
start by retuning to principles: MS Project Programmes, Excel Budgets and Excel risk registers (or a decent
software). We are failing to complete fundamental tasks that even graduates can manage. Keep it simple.  When
do we need to buy a long lead time item? Buy it before then.  When do we need a KO approval? Obtain it or
scream until KO give it.
•  A no surprises approach. Open and transparent communication with the Development Teams. Costs are effectively
managed
•  A full reshuffle/health-check of the entire alliance. I think it needs to be scrapped and start again. i genuinely don't
INFORMATION
believe this one can be fixed.
•  Focus on programme control, Cost management and accountability for delivery targets.
RELEASED
•  Focus on delivering the basics of land development. Focus on the lessons learnt from the last 3years and how we
can improve not what we need to allow for.
•  Alliance Culture (from both sides), more efficient procurement (DTOC/TOC) processes, Piritahi challenging Kainga
Ora and providing more robust consultant guidance, developing better standards with Auckland Council and CCOs
to deliver standard designs more efficiently, better mechanisms for testing design options and costing, streamline
the TOC process
•  Management systems, accurate cost and programming.
•  Alignment, structure, communication channels, editing.
OFFICIAL
•  Delivering value for Money. Maintaining programme.
•  Cost, cost, cost.  i.e, for the $34M a year the management of the Alliance costs, we could hire 20 Senior Project
managers and deliver everything we need to plus save $30M a year and have better information.  Not to mention
clearer ideas of costs, and more control over the outcomes we need.   NOP's need to support the Alliance by
providing TOP staff.   Piritahi should not be recruiting, and if they are, then KO would be better placed to just hire
people, and the purpose of NOP's and the Alliance is redundant as we end up paying for recruitment, both directly
and in the multipliers and the NOP's get benefit with no role.

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Q5. What specific improvements can we make in terms of experience for Kāinga Ora?

•  Showing an understanding of the financial pressure the Owner Participant is under to deliver the civil works.
Demonstrating innovative solutions and coming to the Owner Participant with successful resolutions of difficult
issues with CCO's, rather than Kainga Ora needing to put pressure on the Alliance to seek out and have these hard
conversations. These solutions generally translate directly to cost savings, freeing up budget to deliver better on
the urban regeneration outcomes we are ultimately seeking.
•  Disestablish the Alliance or at least stop adding new work into the Pipeline. Finish the TOCs we have and move on.
The Alliance was a good concept but a failed execution. Stop wasting public resources on a plane that doesn't fly.
•  Remember we are part of the Alliance so be inclusive and transparent
•  Not sure what you are asking, but there is plenty of experience amongst the staff in the alliance. (they are highly
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skilled and technically very competent people). so Kudos for that.  I think Piritahi needs to have a Fletchers or a
Downers in there to show them how it’s done. I feel like we would prefer/appreciate the commercial nature of
THE
that as a trade-off to know what is actually going on projects.
•  Programme control by Piritahi needs to be tightened up with live updates to programme milestones, and
explanation and early warnings if programme targets are not being met - there should be a no surprise approach
ACT
from Piritahi to Kainga Ora. Cost control really needs a major focus, with accurate and timely cost information
supplied to Kainga Ora.
•  Be more transparent and open when developing the TOC price. Currently we get the TOC price towards the end of
the process, this needs to be more open to see where the price is tracking as we progress with design. Include
Kainga Ora when making decisions for the TOC, include Kainga Ora when making decisions with the Asset Owners.
UNDER
Suggesting to Kainga Ora the minimum we require to develop the land for the proposed yield rather than trying to
fix the infrastructure for the neighbourhood.
•  Agreeing standard processes with Piritahi (communication, procurement, NIP) to make everything more efficient.
Agreeing to abide by Alliance Principles.
•  Management systems, accurate cost and programming. No slipping every month, no unexpected jumps. No getting
to near the end of a TOC to reconciliate costs, looking for opportunity for CRs, and realising what the actual
programme looks like.
•  Better cost capture. Narratives AS WELL AS data
•  Streamlining and fast-tracking the TOC development process, especially during pricing reconciliation. This is
currently taking way too long (3~6 months instead of 3~6 weeks).
INFORMATION
•  Clear out the AMT and get a proper structure in place that is not top heavy and expensive. The arrogance and
personal agendas of the AMT/AGM are divisive and create tension between staff and KO.
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•  For KO to have any confidence in Piritahi, a bold move must be made.   Get back to basics with what’s required of
an alliance.  The home companies need to step up with their support with providing staff, otherwise what’s the
point? The commercials underpinning the contract. These need to be addressed. We have evidence that we can
get better commercial outcomes via traditional contracts (on a like for like basis), the alliance should be better
than this.

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Alliance Management Team Feedback

Q1. Leadership
Question
Weighted Average
The AMT feels they receive support and guidance from the PAB
2.88
The AMT provides clarity of purpose and vision to the wider project team
3.38
The AMT role models Alliance principles and constructive behaviours
3.63
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AMT members actively spend time mentoring each other as well as members of the
3.5
project team
THE
The AMT discussions facilitate innovation and solving of complex problems
3.5
AMT members speak positively of each other and staff and re-enforce what we are doing
3.38
ACT
well
AMT reporting is transparent and provides line of sight over performance
3.75
AMT members provide honest, regular but supportive feedback to each other
3.38
AMT members actively re-enforce the Alliance values and behaviours to staff
3.63
AMT members help shape a sense of connection and belonging for staff on the Alliance
3.75
UNDER
AMT members empower others and create an environment where people perform at
3.88
their best
AMT members spend time in field to provide visible leadership to the workforce around
3.75
safety
People and safety is a high priority to the AMT
4.38
Customers and community are at the forefront of all decision making
3.5

Q2. What do you think we do well as an Alliance?
INFORMATION
•  We are successfully developing land and infrastructure to support Kāinga Ora's housing programme. We have a
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best for programme approach and we are working to be more aligned across all the functional teams.
•  We encourage and support our teams to deliver to a high standard.
•  Deliver a high volume of design and construction work. Strive to meet the requirements of KO
•  Lead teams of passionate expert that continue to deliver through uncertainty and ambiguity and have the
resilience to keep going, even when squashed from every angle.
•  Relatively successfully bringing together and leading, supporting and growing six participants, five of whom have
next to no Alliance experience.
•  Want to be here to really deliver for Kainga Ora
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Q3. What does great look like in 12 months’ time?
•  Clear direction set, delivering on our focus areas and 90 day plans. Improvement in our cost position and positive
feedback in various leadership surveys.
•  The alliance is performing as a well aligned team.  There is good collaboration with Kainga Ora as our alliance
owner partner.  Key deliverables are being met. We have achieved a contract extension.
•  Contract extension
•  Clear roles and responsibilities. Alliance principles and behaviors practiced and demonstrated together across the
PAB , AMT and KO teams.

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PIRITAHI ALLIANCE TEAM HEALTH CHECK

•  A clearly understood and agreed alliance model.

•  Clear KRAs and KPIs, a more supportive client and PAB and a commercial position which is moving back up towards
neutral. And of course, extension from 5 to 8.
•  NOP's doing more e.g., where is their Recruitment and retention plan for Piritahi rather than vice versa
Q4. What do we need to focus on to achieve great?
•  Focus on the fundamentals. Developing and communicating a clear direction and purpose.
•  Resolving the perception that the alliance doesn't provide value. Improving collaboration across all alliance
participants.
•  Back to basics, proving value and delivering
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•  Be very clear on the key areas of value at programme level and prioritise our opportunities for positive impacts in
those areas first and foremost.
THE
•  Making things easier, so we can focus on the real work.
•  Quantifying covid impacts and building the client relationship.
ACT
•  The value, goals, aspirations, principles, behaviours etc.... set so we can live and lead them

Q5. What specific improvements can we make at AMT level?
•  More time focused on developing the team. Opportunity to challenge and provide constructive feedback to each
other.
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•  Become a united AMT.
•  More delivery focus
•  Deepen constructive and trusting working relationships with PAB and KO teams. Focus on the big items that will
move the measures of programme value and success. Visible ownership and promotion for the alliance purpose,
objectives and principles and ensuring they connect all the way through our teams and wider.
•  Having a clear vision, enabling clearly understood efficient ways of working, setting clear measures of success.
Enabling a culture that breaks down silos and builds structured integrated teams, systems, processes, reporting
and know how.
•  Being less siloed. Being more involved in the day-to-day detail of big issues. Having less triangular conversations.
INFORMATION
Forming better connections to our “home” organisations.
•  Set the value, goals, aspirations, principles, behaviours etc.... set so we can live and lead them
RELEASED

Wider Team Feedback
Q1. Alliance Culture
Question
Weighted Average
OFFICIAL
The Alliance has a clear sense of purpose
4.2
Customer is at the heart of all decisions we make
3.9
I am clear on what my authority is to make decisions
3.8
Staff are consulted on key decisions that impact on us
3.7
We are recruiting the right people for the right roles
3.7
I receive adequate training to undertake my role
3.7
I feel respected by my supervisor and colleagues
4.4
I receive regular feedback on what I am doing well and what I can improve
4.1

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Question
Weighted Average

I am rewarded for delivering quality work
3.9
I am supported when I am learning and make mistakes
4.1
I have clear set of objectives
3.8
My objectives are challenging but achievable
3.9
There is alignment of objectives across the teams – we are working towards a common
3.4
goal
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I feel that the work I do makes a difference
3.9
I have autonomy and feel empowered
3.8
THE
I receive regular communication from the AMT
4
My supervisor is open and transparent
4.4
ACT
I have opportunities to provide feedback to my supervisor
4.5
I feel my human rights are respected
4.6
Our Alliance values diversity and inclusion
4.3
We have transparent performance metrics as an Alliance
2.9
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We regularly debrief as a team on our performance and how we can improve
3.6
collectively
Safety and well-being is a high priority
4
Levels of pressure, stress and anxiety are high on the Alliance
4.1
Staff on the Alliance work as one team leaving their home organisations at the door
3.7
Staff collaborate across different departments within the Alliance
3.9

Q2. What do you think we do well as an Alliance?
INFORMATION
•  Deal with a Client that ranges in Alliance understanding and practicing principles.
•  Deliver super lots, within a complex environment of regulation/brown field context and a unique contractual
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arrangement
•  We are very accommodating to stakeholders, Kainga Ora, CCO, Community and BuildPartners.  As a result, I think
sometimes we are taken advantage of ....
•  Care for our team
•  No matter what it takes we get the job done as quickly and efficiently as possible but maybe not as cost effectively.
•  Excellent collaboration within the Pre-Con team and we are better value for money than BAU commercial delivery
models.
•  At differing levels on the Alliance people work well together.
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•  We continue to deliver works to KO under challenging conditions (resource constraints, COVID, complex TOC
staging, overlapping works with build partners, etc). We have a good culture of no-blame, but this can go too far,
where this is sometimes taken as no accountability.
Q3. What does great look like in 12 months’ time?
•  Better alignment with client and IE on sustainable budgets
•  Increased completion of superlots
•  A well-oiled machine, with clear briefs coming in, alignment and fast track regulatory approvals, high productivity
levels and minimal re-sequencing.

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• Consistency across the programme of projects in terms of role clarity (who does what), processes followed, quality
of work.
• Providing more Superlots, improving our systems, providing more data for analysis, improving our efficiency.
• Consistently accurate and stable programme received from KO. Steady improvement/reduction in our pain
position.
• Clarity around roles and responsibilities and delivering to our objectives is easy.
• Better role clarity. Genuine open and honest communication and collaboration between the NOPs and KO. More
accountability and better control of programme, cost and quality
• Everyone knows what they are doing - role and responsibility clarity, KO are thrilled with our work
Q4. What do we need to focus on to achieve great?
• Better Alliance principle application across OP's/NOP's.
• Breaking down the processes to enable greater delivery
• Being aligned and operationally efficient with our stakeholders KO, CCOs Community and BuildPartners - the AHP
ACT 1982
is a government priority
• Understand that we have a programme of work and programmes are run differently to a single (albeit large)
project
• Getting the process correct from the start (KO brief) to the end (timely handover and meeting or beating budget)
• Clear and stable scopes with achievable budgets
• Agree how we do things as an Alliance.
• Manage change better. Better relationships with KO partners and no surprises culture. Improve/establish proper
change management
• Better briefs, much better and timely decision making by the AMT and PAB, less micromanaging by AMT and PAB
Q5. What specific improvements can we make in terms of our Alliance Culture?
• Better Alliance principal application across OP's/NOP's.
• Changing the master vs servant relationship that sometime exists
• Constant reminders to embrace collaboration and trust.  Collaboration doesn't mean everyone needs to be
INFORMATION
involved in every decision so we grind to a halt.  That is when trust is so important
• Programme management training
RELEASED UNDER THE
• Break down any remaining silos. Continue to improve conversations between us. KO development managers to get
onboard with this Alliance.
• Bringing KO alliance partners into the Quay Street office.
• Clarity around roles and responsibilities, communicate KRA/KPIs/objectives
• lead from the top both and do not accept below the line behaviours.
• Have someone dedicated to improving the culture and workplace experience.   Refine the end-to-end workplace
experience, starting with recruiting.
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