PIRITAHI CONTRACT - EXTENSION
Kāinga Ora Homes and Communities Board
Paper no:
X.X Board Advisor to insert
Meeting date:
25 October 2022
General Manager:
[email address]
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General Manager Urban Development and Delivery
s 9(2)(a)
Paper author:
s 9(2)(a)
@kaingaora.govt.nz
Director Infrastructure and Civil Construction
s 9(2)(a)
Business Group:
Urban Development and Delivery
Title:
PIRITAHI CONTRACT - EXTENSION
INFORMATION
RELEASED UNDER THE
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Board Report Post Committee: Piritahi Contract - Extension
Purpose
1. This paper seeks Kāinga Ora Board agreement to enter into negotiations with the Non-Owner Participants (NOPs) of the Piritahi Alliance (the Alliance)
for the extension of the Alliance Civil Alliance Programme Agreement (ACAPA), which has a completion date of 6 December 2023.
2. While there are no direct financial implications associated with the extension of the ACAPA, we are presenting this paper to the Board as the total
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value of the overall programme of works associated with this contract extension should have Board visibility.
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Recommendations
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3. It is recommended that the Kāinga Ora Homes and Communities Board:
a)
note that Kāinga
Ora needs to consider the extension of the ACAPA at this time to provide certainty to the Piritahi Al iance participants for its
forward work programme;
b)
note that three scenarios have been considered, and that an extension of the ACAPA is the recommended approach to ensure recent investment
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and efforts to improve performance can continue to be realised;
c)
note that the recommended approach has been endorsed by Construction Programme Assurance Panel (CPAP) who we wil continue to work with
for advice through the contract extension process. This approach was also endorsed by the Large-Scale Project Programme Governance Board at
its meeting of 16 September 2022 and at the Investment and Delivery Committee at its meeting of 17 October 2022;
d)
agree to Kāinga Ora entering into negotiations with the Non-Owner Participants (NOPs) to extend the ACAPA for a further term of three years, and
e)
agree to delegate execution of the contract extension to the General Manager Urban Development and Delivery, subject to the negotiations being
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successful.
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Board Report Post Committee: Piritahi Contract - Extension
Committee Report and Discussion
4. The IDC
endorsed the above recommendations.
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5. The IDC raised the fol owing points for discussion relating to the Piritahi Alliance, any contract extension of the Alliance and governance:
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a) Urban Development and Delivery (UDD) noted the need to ensure that commercial tension is maintained during the forthcoming contract
negotiations with Non-Owner Participants (NOPs)
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b) Planning is also in train to insure the non-negotiable items are programmed early to ensure that it is not a protracted process. An early exit option
wil also need to be considered should non-negotiable items not be agreed. UDD commits to adhering to this direction.
c) IDC members requested greater visibility of Piritahi and agreed that UDD should provide an annual check-in with the Kāinga Ora Board on the
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Alliance. UDD commits to returning to the Board in June 2023 with an update on Piritahi.
6. UDD confirmed that the independent review undertaken by BRS provided value and IDC members agreed that this type of review should be conducted
regularly. UDD agreed, and noted that there would be benefit extending this to Te Aranga as wel . UDD committed to facilitating annual independent
reviews of both alliances.
Next Steps
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7. Following agreement from the Kāinga Ora Board, the fol owing next steps wil be undertaken:
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a) Inform the Piritahi Programme Alliance Board of the decision
b) Finalise Contract Extension Plan
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Board Report Post Committee: Piritahi Contract - Extension
c) Enter into Negotiation with existing Alliance Partners
Attachments
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8. There is one attachment to this paper:
• IDC paper: Piritahi Contract – Extension, 17 October 2022
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Signature
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Mark Fraser
General Manager, Urban Development and Delivery
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Document Outline
